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Adapting to Change: The Role of IT Staffing in the Future of Insurance

The insurance industry is undergoing an era of rapid change due to advancing technology that is changing the way the industry operates. Some examples of these advances are drone technology that can provide images of damage as well as AI that can or will soon be able to provide actuary data instantly.

In the middle of these rapid changes, the insurance industry finds itself understaffed and lacking younger workers–a situation that will only get worse as time goes on. Less than 25% of the insurance workforce is under 35, and 50% of current workers are expected to retire in the next 15 years. 

These challenges are especially difficult when it comes to IT hiring in the insurance industry. IT staffing is already challenging, and is more so for the insurance industry, which is not perceived by young people as an interesting field to go into. If the industry wants to narrow the hiring gap and attract the necessary IT talent, it needs a road map. 

Technological Advancements in Insurance

The technological advancements of the last 30 years have brought about dramatic changes in the insurance industry. Here are the major advances:

Cloud data storage. Instead of keeping data on servers kept on site, data is now housed in the cloud without any need for on-site servers and with many more redundancies to prevent data loss. 

The Internet of Things. The connection of phone and tablet apps to websites has made it possible for customers and insurance adjusters to take pictures of accident damage with their phones, upload them to an app, and for information to be accessed on the company’s cloud servers with any kind of device. This has revolutionized the insurance industry, but IT staff is needed to create and maintain systems and make sure everything works as it should.

Blockchain. The security of blockchain has enabled its use in smart contracts and other paperwork and for tracking insurance claims securely. Blockchain has made the industry safer and more transparent than it ever used to be. 

Artificial Intelligence (AI). The insurance industry is already using AI for claims processing, underwriting, fraud detection and customer service. The power and speed of AI are hard to beat. It requires a lot of supervision and fact-checking to make sure its conclusions are accurate. 

The Growing Importance of Cybersecurity

Another area of great need for tech roles in insurance is cybersecurity–the safeguarding of crucial customer and proprietary data from cybercriminals and identity thieves. Every day, perhaps every hour, hacking attempts are made in the effort to steal data and use it for personal gain. 

IT staff are needed to build robust cybersecurity networks to keep private data safe from these hackers and provide the peace of mind that comes with being insured against damage and loss. 

two colleagues going over the changes in their IT company

Data Analytics and Personalization

Data analytics has made it possible to customize insurance more individually than ever before. The amount of data that can now be collected is much vaster than ever before and provides a much clearer picture of risk and benefit. 

The insurance industry is focusing much more on customer experience. Having the right data tells companies how to improve their customer experience more accurately. Data analytics is revolutionizing personalized insurance services and allowing customers to get more of what they want from their insurance. 

Insurance IT recruiting is needed to leverage data for better customer experiences, because even the best data is useless if you don’t know how to use it. In order to offer highly tailored products, services, and experiences, IT staff will need to use data analytics, AI and machine learning in real time. Insurance agents will become trusted advisers who help customers get more of what they want and need. 

Regulatory Compliance and IT Staffing

Regulatory compliance is crucial and essential in the insurance industry, and regulations are constantly changing and evolving. Complying with regulations is not an option, it is necessary for a businesses’ existence. As with so many other challenges in the insurance industry, technology is an important partner in regulatory compliance. 

Software support for regulatory compliance has become an important part of insurance platforms and systems. This means IT staff are needed to create, manage and maintain these digital advances and ensure that compliance is easy to understand and implement. Without regulatory compliance, everything falls apart and a company will soon be out of business. The role of IT staff in compliance is crucial to any insurance enterprise.

Strategies for Effective Insurance IT Staffing 

To overcome the perception that working in insurance is not interesting or challenging, insurance companies need to educate workers about the industry and the kinds of jobs available. This can be done through mentoring and internship programs at colleges and universities, targeted advertising online, and content marketing to rebrand IT insurance staffing. 

Another way to attract top talent is to offer continuous learning and development for employees to ensure that their skills will always be up to date. Younger workers especially will be attracted to a job that offers opportunities to learn new skills and a work environment that pushes them to grow. 

The changes in the insurance industry have led to a more important role for technology and the need for IT staff to create, manage and maintain these new technologies. 

Using all the recruiting methods at your disposal will help you stay ahead of these trends and find the IT insurance talent you need. GDH offers help with IT insurance staffing, unparalleled expertise in IT staffing, and proprietary sourcing tools to keep your company on top of the competition.

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