Issue 15 - Autumn 2020
Article by Paula Hodson, Director of Education and Development Services, The Insurance Institute.
To say that technological advances have changed the workplace is an understatement. Innovation and technology are central to everything we do and those that are not keeping pace are in danger of getting left behind. Globalisation, Artificial Intelligence (AI) and Robotics are seen as the greatest threats to jobs – and while many individuals are worried about the impact these advances will have on their livelihoods, Chief Executives are concerned about a lack of talent. According to the PwC 2019 Global CEO Survey, 84% of Irish CEOs believe that a lack of essential skills in their workforce is threatening the future growth of their organisation, this is pushing up their people costs faster than expected and their businesses are not able to innovate effectively as a result.
So, what exactly are these skills that are currently lacking in the workforce and what specifically do employers want?
The insurance profession, like many other industries, is undergoing unprecedented change with exponential technological developments, agile working environments (either planned or forced as a result of the recent pandemic), evolving regulation, and changing customer expectations.
Technology advancement is no longer coming down the tracks, it’s already here! We now see companies successfully using AI, blockchain, digitisation and personalised data analytics as part of their standard work practices. As a result, therefore, digital upskilling is vital in order to create a viable workforce for the future.
Improved STEM (Science, Technology, Engineering, and Maths) skills are essential in allowing people to perform the new roles and tasks that will arise from AI and robotics. At the same time, ‘soft’ and transversal skills are crucial to ensure people are adaptable and employable throughout their working lives.
This is supported by recent research from the European Centre for the Development of Vocational Training (Cedefop) which analysed over 70 million online job adverts in Europe. The data showed that employers want technical knowledge as a given – meaning that it is essential, but that is not all - they also seek a workforce that demonstrates capabilities such as:
Successful businesses recognise that highly skilled workers are invaluable, and educated employees keep businesses competitive and productive. I often talk about the difference between education and training and how, as a profession, we need to engage, educate, and invest in our employees and in particular when it comes to new entrants. Training is about practice, acquiring skills and learning how to do things. Education is about fostering the mind by encouraging it to think independently by introducing it to knowledge gained from a range of sources and experts. Employers who invest in education will not go unrewarded, as current research shows it increases both loyalty and retention rates in the workforce.
In an increasingly volatile, complex, and ambiguous world, we, the insurance industry, need to foster enterprise-wide agility and need employees that embrace the entrepreneurial mindset, while also implementing agile tools and processes company-wide. It is imperative that upskilling and reskilling activities meet immediate and emerging skill demands and ‘learning to learn’ will allow our workforce to develop the skills needed to adapt quickly and change their processes and procedures to meet current and future challenges.
Establishing a strong link with the Insurance Institutes as education providers is imperative as they are best placed to provide courses suited to our profession. Advanced insurance qualifications develop not only technical knowledge but also foster expertise gained during the student's educational journey. Students engaging in these exams are taught how to research, critically analyse information, evaluate and problem-solve to create solutions and ultimately present their findings — these transversal skills along with increased technical insurance awareness are directly transferable to 'on the job' roles.
Here in Ireland, the ability to attract and retain the best talent in a competitive market is crucial. Following extensive consultation with our members we collaborated with The Institute of Technology, Sligo (ITS) to create Ireland's first honours degree apprenticeship. Set up in 2016, The Insurance Practitioner Apprenticeship ensures that new entrants develop the relevant skillset while also gaining a nationally recognised qualification.
Our belief was, and remains - that industry together with education partners, are best placed to create an educationally robust insurance programme that tackles the skills shortage. A dynamic apprenticeship programme also helps raise awareness of careers in insurance and makes it more attractive to new talent.
Last year, we were delighted to see the first cohort of apprentices graduate from the programme - on completing the apprenticeship, each of them was then equipped with advanced insurance technical skills, as well as broader management skills including business law, negotiation in practice, marketing, e-business and innovation, big data and critical thinking. These are all skills which the apprentices were able to then apply to their jobs on a daily basis, and which will also set them on the path to a successful career in insurance. The feedback from both employers and apprentices to date has been tremendous.
If recent times have taught us anything, it is that we need to keep adapting and learning. Skill demands are changing so rapidly that, by the end of the decade, they will look very different than they do today. As the pace of digital transformation accelerates, it will pose challenges for both employees and employers. However, if we promote the complementary skills of critical thinking, problem-solving and innovation, we will have a workforce that will be able to adapt and embrace the changes that will face us in the future. With this in mind, it’s safe to say that each and every one of us has a role to play, but given the adaptability, the integrity and the innovative nature of insurance and the people who work in it, I have every confidence that we will build an industry fit for the future.
