There is a common misconception that younger generations don’t want to work in insurance. In some cases that may be true, but many of us millennials fell into insurance and now have no plans to leave. As a millennial, I co-founded Tarmika, a commercial lines distribution platform that Applied acquired in 2022, and now I work at Applied as the SVP of commercial lines. While others in my generation share this passion for insurance, there is also a talent shortage in insurance among the younger generations. As the baby boomers retire, fewer people in their 20s and 30s are willing to jump into the industry because they perceive it as “old.”

Earlier this year, our partners at Ivans interviewed me and two of my Gen Z/millennial industry peers at Insurtech Boston on what we look for in an employer and surveyed hundreds of Gen Zer and millennial insurance professionals. Here is a sneak peek of my perspective that I shared with Ivans and some of the stats from their latest research.

Work-Life Balance

With two little kids, a dog and my wife at home, I'm most productive at the office, but I understand why people like to work from home. In Ivans’ survey results, 76% of the respondents ranked work/life balance as the top factor they look for from an employer. For some, that balance might mean working different hours or having a remote or hybrid environment. Do you need to be in the office five days a week to be successful? It depends on who you are and how you work best, but I don’t think a five-day workweek in the office is needed for most employees.

Collaboration and Communication

Collaboration at Tarmika back before we were acquired was huge. One example was building out Tarmika’s entire direct-to-consumer flow, which we built back in 2022. It took us six months of work. It was a lot of investment and time, but having our various team members from sales and product engineering in the office together was important in getting that to the finish line. Even today, after the acquisition, we're still keen on collaboration and being in the office together. In my opinion, it's hard to communicate as well on Zoom. However, preferences vary widely regarding collaboration and communication preferences for other Gen Zers and millennials in insurance, with 29% of the recent Ivans survey respondents preferring chat technology like Slack and Teams and other preferences ranging from in-person collaboration to virtual meetings and email. The main theme is that the majority of those surveyed in these generations do not want to pick up the phone for business purposes to call or text.

Digital Connectivity

Digital connectivity is how Tarmika built its business. Insurers and agencies are still spending a ton of money on building their own systems, doing things without connecting, costing them more money. It's costing them on their margins, and agencies must cut every cost they can. With digital connectivity, you can cut costs and produce more profits. Among Gen Zers and millennials surveyed in Ivans’ latest research, nearly 70% of respondents see quick and easy digital experiences as the biggest opportunity for industry growth.

Tech Adoption to Accelerate Workflows

The insurance industry does many things right, which is why there are so many successful entrepreneurs, agency owners, and carrier employees. Insurance businesses are some of the most successful out there, so you can't fault them for much. They do a lot right. I think adopting technology is one area the insurance industry hasn't been great at. The industry is getting better because it has to. It's losing talent. The industry needs to do a better job adopting technology to become more efficient and continue to have lucrative businesses. In Ivans’ latest research, customer service, communication and automation were ranked as the top areas where innovation can accelerate workflows.

Industry Innovation

I think there are a few things we can pull from other industries that would work really well in insurance, and pay is one of them. The ability to collect payments has been a huge pain point in insurance. Applied is doing an excellent job with its Applied Pay digital payments work. Payment options are also among the areas Gen Zers and millennials want to see more innovation in within insurance.

More Millennial and Gen Z Industry Perspectives

To close the talent gap and open up the door of possibilities to bring more Gen Zer and millennial talent into the industry, we need to find the secret recipe to attracting and keeping these generations. Check out the latest research from Ivans, which features stats from their latest survey and more of my insights, along with thoughts from two of my industry millennial and Gen Z peers.