What Is Your Captive's Talent Acquisition Strategy?

The time is ripe for getting the right talent on board in the insurance industry. Without an effective talent acquisition strategy, organizations risk hiring the wrong candidates, leading to costly turnover in terms of time, money, and morale. Ensuring the right hires is vital to the future success of any business, and captive insurers are no exception. When was the last time you evaluated your captive's talent acquisition strategy and the challenges it faces?

Competition for Talent Intensifies

The competition for talent in the insurance industry is fierce, driven by demographic shifts and evolving technological demands. Currently, millennials make up approximately 35 percent of the US workforce, making them the largest generation in the labor market. By 2025, millennials are expected to represent 75 percent of the global workforce. This shift underscores the urgency for insurers to develop strategies that appeal to this generation's preferences and values (Brookings, TeamStage).

Why Should Captive Insurance Companies Be Concerned?

Captive insurance companies, although typically smaller and more specialized, are not immune to the talent acquisition challenges facing the broader industry. Even if a captive outsources much of its management, the firms it relies on—such as captive management companies, accounting firms, actuarial firms, and insurance brokers—are all grappling with the same issues.

As these firms face difficulties in acquiring the necessary talent, the impact on captives can be significant. Unfilled positions can lead to increased workloads, a higher likelihood of errors, and disruptions as existing staff are diverted to train new hires. These challenges, while perhaps incremental, can have a noticeable impact on operations.

The Importance of a Talent Acquisition Strategy

It's crucial for captives to develop a robust talent acquisition strategy. Talent is a key differentiator in any industry, and the insurance sector is no exception. A well-executed strategy can ensure that your captive has the right people to drive its success and help it stand out in a competitive market.

The board's oversight should extend beyond traditional areas like risk governance and corporate responsibility to include talent management. Talent is a fundamental aspect of an organization's risk culture and neglecting it can hinder the company's ability to achieve its strategic objectives.

Moving Forward

When developing a talent acquisition strategy, captive insurers need to consider several key points.

1. Technological Evolution: The insurance industry is undergoing significant changes as technology reshapes the landscape. Captives need to stay ahead of these changes to attract and retain top talent. In 2024, skills in data science, analytics, and technology integration are increasingly vital, particularly as automation transforms many traditional roles within the industry ​(McKinsey & Company).
2. Generational Shifts: As mentioned, millennials now constitute the largest portion of the workforce. This generation values work-life balance, career development opportunities, and a strong alignment with an employer's values. Captives will need to adapt their corporate culture to meet these new demands ​(TeamStage, LiveCareer).
3. Diversity and Global Talent Networks: Diversity and inclusion are not just buzzwords—they are critical for innovation and competitive advantage. Additionally, as the insurance industry becomes more global, captives need to cultivate talent that can operate across different cultural and regulatory environments ​(Eliot Partnership, VantEdge Search).
4. Employee Experience and Retention: The focus on enhancing employee experience is crucial. With the shift to remote and hybrid work, companies that offer flexibility, strong employer branding, and career growth opportunities will be more successful in attracting and retaining talent ​(The Jacobson Group).

The Fundamentals

While talent acquisition strategies may vary, some fundamental principles remain constant.

• Global Talent Networks: The rise of technology has transformed talent acquisition into a global endeavor. Captives should leverage these tools to build a robust talent ecosystem.
• Employment Branding: A strong employment brand is just as important as a strong marketing brand. Captives need to articulate what makes working in insurance—and for their organization—exciting and rewarding.
• Succession Planning: It's crucial to evaluate the talent bench strength within your captive and among your service providers. Succession risk must be managed proactively.
• Key Metrics: Monitoring metrics like hiring success rate, time to fill positions, and onboarding effectiveness can provide valuable insights into the effectiveness of your talent acquisition strategy.
• Engagement: In today's competitive environment, the best talent doesn't go looking for work—opportunities find them. Captives need to engage their existing talent consistently and effectively.