The insurance industry in South Africa faces numerous challenges, arising from technological advancement, climate change and changes in the litigation landscape.
Among these challenges is a skills shortage, which, according to the Insurance Sector Education and Training Authority (INSETA), is being felt most acutely by specialist insurers who are facing a high level of demand for strategists and underwriters who have sufficient levels of experience and expertise.
A new set of skills
Technical skills like risk modelling, pricing, and technical accounting are becoming increasingly sought-after. Despite the many opportunities available in the insurance sector, young graduates who possess these skills are opting for careers in other better-known industries such as fintech, accounting, law and engineering. Many of these young candidates are simply not aware of the opportunities that exist within the insurance industry, which ultimately means that there are fewer young entrants into the sector.
This reality has necessitated a renewed focus on retaining and acquiring the best talent, and for many insurance firms and brokers, this means addressing the issue of the generational transfer of skills and knowledge. Mentorship and knowledge-sharing programmes are being introduced by industry bodies as a direct way of addressing the skills shortage, and while such initiatives are effective, they are only half of the solution.
New and emerging risks require a new set of skills, revised training and education programmes – and for this, we rely on institutions of learning.
Education, competencies and careers
In part, the skills shortage has its roots at a school level and the fact that the industry is not adequately marketed to South African learners. Here, we see an opportunity for collaboration between secondary education institutions and industry bodies to create awareness around the diverse opportunities that exist within the sector. Students need to be exposed to this information at a high school level, so they can begin to think and apply themselves in a way that sets them up for a successful career in insurance.
At a tertiary education level, collaboration between universities and industry bodies is just as important and can serve as a valuable source of high-quality candidates. Faculties like Commerce, Engineering and IT can increase their focus on the development and professionalisation of students and provide specialised skills training that will position students for potential careers in insurance.
Within the industry itself, newly placed graduates who would likely start their careers in administrative, entry-level positions need to be given practical advice on how to advance their careers. Entrants into the industry need to be shown that a clear career trajectory is highly possible, particularly for those who are willing to keep learning and growing to keep up with the dynamic nature of the industry.
The prevailing recruitment trends have placed much emphasis on a candidate’s years of experience. But now, faced with revolutionary changes, a shift in focus to aspects like ability and capability is required to attract diverse skill sets. Some of the competencies that are essential for insurance professionals include analytical and problem-solving skills, strong negotiation skills and communication skills.
Technology as an enabler
Companies that embrace technology are perceived to be progressive, and forward thinking, and will be in a good position to attract and retain talented individuals that are motivated to play a part in shaping the future of the industry. Insurers that are lagging in digital transformation may miss the opportunity to retain their younger Millennial and Gen-Z employees.
The insurance industry is a great place for graduates to begin and grow their careers. There are many opportunities for ambitious and talented individuals, from diverse backgrounds, to create fulfilling careers. The industry is exciting and dynamic and offers professionals the opportunity to be part of creating meaningful impact to society.
Nkuli Xeketwana and Tlangelani Masango
Underwriters for Liability
