Insurance sector lacks key skills in Gen AI and finance

The workforce requires upskilling.

As half of the insurance workforce nears retirement, the industry faces a talent shortage, particularly in areas requiring new and evolving skills. Sharon Teo, Chief Transformation Officer at MSIG Insurance, highlighted the need to focus on upskilling to address this challenge.  

"There are three key areas," said Teo, referring to the skills required in general insurance today. "First is sustainable finance. Apart from a broad-based awareness, there's a need to upskill existing roles in sustainable finance knowledge." 

Teo emphasised that roles like accountants must learn ESG disclosure and reporting requirements, while underwriters must understand the impact of climate change on industries such as renewable energy and electric vehicles to underwrite these risks more effectively.  

In addition to sustainable finance, digital and cyber risk have become increasingly significant. She stressed the importance of developing skills to better underwrite and manage these emerging risks. 

A third area of concern is the rise of generative AI (Gen AI). 

"Gen AI can now do competitor research, develop codes, even handle customer inquiries," Teo noted, "There's a need for skills to write effective prompts, and to use more advanced versions of the co-pilot to help us in our daily work."  

The skills gap, however, is not limited to existing employees. New talent entering the industry is also missing essential expertise. "I would definitely say we need to build Gen AI and sustainable finance skills," Teo said. 

Despite these efforts, retaining younger talent has been an ongoing challenge for insurers. "Millennial and Gen Z talent expect fast progression, whereas insurance is like a craft," Teo observed. Younger professionals, she said, often jump to better offers before building a solid foundation in key skills like underwriting, risk management, and claims assessment. 

"We have to manage the expectations of the next generation of talent," Teo concluded. She underscored the importance of providing development opportunities and ensuring that younger employees find meaning and purpose in their work. This, she believes, is crucial in addressing the industry’s retention issues while simultaneously filling the skills gap that threatens its future.