Insurance Industry Talent Shortage: Crisis & Opportunity

Not just in the Philippines, but the Insurance Industry around the world is critically short of talent. The Europeans, the Americans, and we Asians, are all experiencing the same trend of an aging workforce and young people not ready or not willing to take over. Very few young people are applying for jobs in the insurance sector while the quality of talent entering the industry is lacking, the Philippine Insurers and Reinsurers Association (PIRA) said.

During the recent ASEAN Insurance Council Meeting held in Malaysia, PIRA chairman Michael F. Rellosa said the concern of dwindling young talents for the insurance industry is a global concern. In a recent Chartered Insurance Institute (CII) survey in London, it showed that the quality of talent that enters the industry is at its all-time low.

CII found out that only 8 percent of the members believe that new entrants are “very well” equipped in terms of basic literacy and numeracy and only 49 percent of the members agreed that “education serves financial services well.” This means that even colleges and universities are no longer preparing young people well to suit the insurance industry’s needs.

One of the challenges in the insurance industry is that it is incredibly candidate short but all insurers and employers tend to want strong experience and, at the end of the day, there just is not enough experience to go around.

“Yet the biggest puzzle we have to solve is the bad perception of young people—and the public, in general—about insurance,” Rellosa said.

In the Philippines, he said very few young people are applying for insurance jobs because they “don’t like to sell.” They also see insurance as boring and doesn’t pay well.

Crisis also brings Opportunities

The Philippines has the smallest insurance market among member-countries of the Asean 5, despite having the second largest population. Less than 3% of the total Philippine population have insurance and this only rises to 18% if insurance provided by employers is included. 

The Philippines has a low insurance penetration which currently stands at 1.7% even if it has a large population of over 100 million. It is also below the average which is 3% in the Asean region.

For the Industry, this is a crisis that is translated to "opportunity losses" but for the Individual, this is also a brilliant opportunity! As a client, you can take advantage by purchasing these financial products or help enhance one's financial capability and capacity by becoming part of the industry through serving this needed demand for talent -- additional & increase one's cash in-flow as well!

Financial Literacy, Education, Inclusion, Insurance as a NEED

To cope with the expenses related to a loved one’s death, damaged properties due to disasters, many times the family of the deceased are forced to resort to desperate coping mechanisms, such as depleting their savings, use cash meant for sustaining their livelihood, sell or pawn property, borrow under usurious conditions and seek financial assistance (abuloy) from relatives, friends and local government officials. 

Also, personally I tell my friends and colleagues that you don't buy insurance for yourself, but for those who you leave behind. Or you can learn the ropes and become an advocate by spreading what you know and learned. This can be done by either becoming a financial planner.

What are you waiting for? Your future starts with you!