Ageing workforce fuels talent crisis in Australia’s insurance sector

About 58% of insurance professionals in the country are over 45.

The talent gap within Australia's insurance industry is widening, with an ageing workforce presenting significant challenges, according to an AXA XL report.

AXA XL reported that 58% of insurance professionals in the country are over 45, compared to 31% of the overall workforce. Conversely, only 18% of insurance workers are under 34, whereas this age group comprises 40% of the national workforce.

The issue is further compounded by nearly 30% of the insurance workforce nearing or reaching retirement age by 2030—significantly higher than the general workforce. This demographic challenge coincides with an increasingly complex, interconnected, and volatile risk landscape, intensifying the need for skilled talent within the sector.

To address this, the Insurance Council of Australia has introduced the industry's first Talent Roadmap. This initiative aims to bridge the talent gap by enhancing capability, diversity, equity, and inclusion within the insurance sector.

The roadmap outlines a mix of short-, medium- and long-term strategies to attract and retain talent from both Australia and abroad. It includes measures to enhance skills and capabilities within the industry, promote insurance as a viable career choice, and ensure the sector remains a robust safety net for Australian businesses and communities.

Key strategies involve collaborating with universities for annual recruitment drives, developing advertising campaigns to highlight the benefits of building a career in insurance, and encouraging former employees to rejoin the sector. 

Additionally, the roadmap acknowledges the role of artificial intelligence and emerging technologies in reshaping the skills required for future roles, ensuring that training programmes are aligned with these evolving demands.

The roadmap also encourages international collaboration, calling for the exchange of knowledge and best practices with insurance organisations worldwide to further strengthen the Australian industry's talent pool.