The latest survey from A.M Best has said that the insurance industry has met its hiring targets over the past 18 months but the aging workforce continues to cause alarm.
In their Spring 2015 Insurance Industry Survey
, the international ratings agency found that nearly 90% of respondents have fulfilled their hiring targets over the past 18 months, regardless of industry segment but the aging workforce within the industry is causing concern.
The survey found that within the industry, 44-55 year olds are the most common within the agent or intermediary sector which made up nearly 70% of the working population.
“Potential issues arise as less than 20% are under 44 years of age, showing the lack of bench strength,” the company said in statement on the survey results.
“When asked about obstacles to meeting hiring needs, a little over 40% of the respondents said the insurance industry is perceived by prospective candidates as not being entrepreneurial enough (i.e., too boring).”
With the Australian industry in its own hiring crunch
and with education a top-of-mind issue for many in the industry
, the report notes the “potential talent drain,” as a big issue for the industry.
The survey also details the increased M&A activity being felt across the industry as the main drivers consolidations were listed.
“The main driver of M&A activity for 2015, according to roughly 30% of respondents is the strategic use of excess capital, with 26% noting meeting growth targets as a main driver,” the company continued.
“The property/casualty and life/annuity segments also viewed the strategic use of excess capital as a main driver in addition to meeting targeted growth objectives.”