Are Insurance Jobs Going Away?
Data from a recent McKinsey & Company report, Automating the Insurance Industry, is scaring a lot of insurance company professionals. The report suggests that within the next decade upwards of 25% of full-time professionals may see their jobs consolidated or replaced by automation with the majority of the losses coming from Operations and Administrative Support.
The analysis considered the current low interest rate environment and numerous growth rate factors across different regions. The need for talent in the area of digitalization and advanced analytics will remain in the forefront, but jobs such as claims adjusting and underwriting are becoming automated as customer demand for technologically advanced reporting and quoting increases.
The industry faced similar challenges with the advent of bank insurance sales and at the introduction of on-line insurance. As the industry continues to become more technologically advanced, carriers and agents alike must leap onto the bandwagon if they don’t want to be left behind.
Today, the average age of an insurance agent is 59, so more than a quarter of them are expected to enter retirement by 2020.