The Great Insurance Talent Migration

Hey there,

The conversations we're having with insurance professionals have shifted dramatically in the past year. Gone are the days of casually window-shopping for new roles. What we're hearing now? Urgency.

"I'm seeing layoffs at companies that never laid people off before."

"I need to get into a company that will help me stay relevant as AI changes everything."

This isn't just chatter. The data backs it up. In the past 10 years, most insurance companies operated with roughly an 8-9% staff turnover rate (including voluntary and involuntary exits), whereas now, it's more typical for companies to operate in the 12-15% range, with voluntary turnover spiking at more significant levels. And according to projections by the US Bureau of Labor Statistics, the industry could lose around 400,000 workers through attrition by 2026. This projection was made in November 2023 and reflects concerns about an aging workforce reaching retirement.

But stats only tell part of the story. This isn't just about job dissatisfaction. It's about fear, future-proofing, and professionals asking: Am I still safe here?

🚪 What's Driving the Great Exit?

Let's break down what's actually pushing experienced professionals out the door, and fast.

1. Layoff Anxiety in a "Stable" Industry

Insurance is known for security. But lately, the foundation's been rattled. Insurtechs like Hippo, Branch, Corvus, and Pie Insurance have all announced layoffs. Even traditional carriers such as Farmer’s, GEICO, Centene, and F&G, have joined the cutback club.

I spend a lot of time singing the praises of how stable our industry is, and on the carrier side it historically has been. Insurtech is much more dynamic and less stable. In people's minds, insurtech and insurance are now largely the same industry, and the perception is that it's not so stable anymore.

Now, folks who once felt rock-solid are asking, "Where's the safest place to land?" Spoiler: it's not always where they're standing.

2. AI Skills Gap Panic

No, AI isn't replacing everyone tomorrow. But the fear is real: "Will I be left behind if I don't learn this stuff?"

As one underwriter put it: "I don't want to be the person who gets replaced because I didn't know how to use the tools."

I keep telling them that they won't be replaced by AI. They'll be replaced by other people who use AI better than they do. Companies that aren't providing AI upskilling paths? They're losing top talent to the ones that are.

3. The Innovation Gap

While insurtech and fintech sectors roll out sleek, integrated systems, insurance professionals are still battling Excel like it's 2003. The now defunct BlackBoard Insurance had Middle Market Underwriters running around underwriting on an iPhone/iPad app. How amazing was that?!?! Well, let me tell you from the recruiting side it was a beautiful thing! At the same time many underwriters at traditional carriers are struggling through green screen systems and disjointed UI for both the clients and themselves. Honestly I can’t blame them for looking into the horizon and being worried they’re getting left behind

One actuary told us: "I spend more time fighting spreadsheets than analyzing risk."

That's not just a tech problem. It's a morale problem. And a serious one at that!

4. Career Ceiling Syndrome

The traditional insurance career ladder hasn't evolved much. And bright minds? They're not waiting around to climb the same old rungs.

Other industries offer lateral moves, project-based roles, even intrapreneurship. Meanwhile, we're still offering "Maybe VP in 12 years… if the right person retires." I was talking about this years back in my The Curious Case of the Disappearing Gen Xers video: https://www.youtube.com/watch?v=zqtuzRZa_i0&ab_channel=InsuranceNerds . This trend has only grown!

5. Purpose Misalignment

Younger professionals want their work to mean something. If your brand message is "we process data," you're going to lose them to companies talking about climate resilience, financial security, or community stability.

The worst part? In insurance, we HAVE a fantastic mission. We help people get back on their feet when something goes wrong. But we do a really bad job at helping our employees understand the mission, and crucially, how their job helps the mission.

6. The Flexibility Factor

Let's be real: flexibility isn't a perk anymore. It's expected.

Companies that cling to five-days-in-office policies are bleeding talent. The future workforce is saying, "If you don't trust me to work from home, I don't trust you to lead me into the future."

Currently we're going through an RTO fight, but I would bet my 401k that basically every carrier and broker loses the RTO fight. The smart ones will start adapting today and take advantage of being really good at managing remote people.

💸 The Hidden Cost of Turnover

Every time someone leaves, it's not just about the role. It's about what walks out the door with them:

• 5.5 years of relationship capital (insurance has one of the highest median tenures in the private sector)

• 50-75% of their annual salary in replacement costs — for a typical insurance professional earning $75,000, that's $37,500 to $56,000 in recruiting, training, and productivity losses

• Client trust that might follow them to a competitor

That's a steep price for avoiding hard conversations about change.

🛠 What the Retention Champions Are Doing Differently

The companies keeping top talent right now? They're not throwing money at the problem. They're addressing root causes. Here's what we're seeing work:

✅ Proactive AI Training

Not just modernizing the stack. Actually showing employees how AI enhances their role, with real hands-on training. It's empowerment, not panic.

✅ Career Architecture

Revamped paths with specialization tracks, lateral moves, and stretch opportunities. Not just "wait your turn," but "build your path."

✅ Transparency About Stability

The best employers are talking openly about strategy and financial health. Silence breeds anxiety. Transparency builds trust.

✅ Purpose Clarity

They're not just selling insurance. They're helping families recover from disaster. They're building economic resilience. And they make sure their people know it.

🔮 The Bottom Line

The Great Insurance Talent Migration isn't about better snacks, hybrid schedules, or flashy perks. It's about professional survival anxiety.

Talented professionals are looking for companies that can help them stay relevant, grow with purpose, and feel secure in uncertain times.

The ones who get ahead of this shift — who build real pathways for learning, stability, and connection — will attract the next generation of insurance stars.

The ones who wait for it to "blow over"? They'll be left behind, scrambling for talent that already moved on.

What's your strategy for keeping your best people — and attracting the next wave? We can help! Not just with recruiting…

Sources: StaffBoom Insurance Workforce Analysis (June 2024), Insurance Business America citing U.S. Bureau of Labor Statistics projections (November 2023), AM Best Analysis (Insurance Journal, November 2023), Gallup Workplace Research on employee replacement costs (2019), Center for American Progress employee turnover study (2023), U.S. Bureau of Labor Statistics tenure data (2024), Public announcements from insurtech and insurance companies (2023-2024)

Thanks for reading,
🎩 Tony

P.S. Know someone in insurance who needs to see this? Forward it along. The more we talk about these challenges, the better we can solve them together.