Insurance HR Professionals Tackle Talent Retention and AI Concerns in 2024

HR professionals in the insurance industry are still facing many of the same challenges that have persisted since the Covid-19 pandemic. A new survey by People Managing People reveals that talent retention remains the top concern for 44% of insurance HR leaders heading into 2024. Other significant challenges include the potential disruption of AI and automation (19%), skills shortages (16%), and evolving labor market dynamics. The insurance sector, like other industries, continues to grapple with workplace shifts and changing employee expectations, especially around return-to-office mandates.

The aging workforce also presents challenges for insurance HR, particularly in workers’ compensation. According to Patrick Coate, an economist at the National Council on Compensation Insurance (NCCI), injury frequency among older workers (65+) has increased, raising concerns about longer recovery times and higher workers’ compensation costs. As more older workers remain in the labor force, their impact on insurance-related claims continues to grow.

Despite the obstacles, some HR leaders view AI, learning, and development as positives for 2024. However, nearly 40% of respondents believe that AI will be the biggest disruptor in the insurance industry over the next decade, as insurers adapt to new technologies and labor market trends.