Challenges of Employee retention, wellbeing and Inclusion in Insurance industry
The insurance industry is undergoing major transformation. As companies modernize systems and adapt to changing customer needs, there’s a growing recognition that people, not just products, are the key to long-term success. But while there’s widespread commitment to improving employee retention, wellbeing, and inclusion, putting that into practice is not without its hurdles.
Here are seven real-world challenges that insurers face on this journey:
1. High Job Stress and Burnout
Insurance roles especially in claims, underwriting, and customer service are often high-pressure. Dealing with people in distress, managing complex policies, and hitting performance targets can take a toll. Chronic stress leads to burnout, disengagement, and eventually, turnover.
The challenge: Many companies are still learning how to balance performance expectations with real support for mental health and workload management.
2. An Aging Workforce
The insurance industry has one of the oldest average workforces across sectors. As experienced employees retire, companies face knowledge gaps and a shortage of younger talent willing to step in.
The challenge: Retaining senior talent while attracting and motivating a new generation requires a delicate balancing act in workplace culture and expectations.
3. Lack of Clear Career Growth Paths
One of the top reasons employees leave is the feeling of being "stuck." In many insurance firms, internal mobility, training, and transparent career advancement opportunities are still underdeveloped.
The challenge: Without visible paths for development, even loyal employees may look elsewhere for growth.
4. Wellbeing Initiatives Without Depth
Many organizations launch wellness programs but fail to follow through with deeper, structural support. Meditation apps and gym subsidies help, but they don’t fix poor management, excessive workloads, or toxic culture.
The challenge: True wellbeing requires long-term investment, leadership buy-in, and cultural change not just check-the-box perks.
5. Inclusion Efforts That Feel Performative
Hiring a diverse workforce isn’t the same as creating an inclusive one. When DEI (Diversity, Equity & Inclusion) strategies are shallow or not well-communicated, they can seem like a PR move rather than genuine change.
The challenge: Employees need to see and feel inclusion through equal opportunities, safe spaces to speak up, and inclusive leadership behaviors.
6. Resistance to Change
The insurance sector, historically traditional and process-heavy, can be slow to adapt to new ideas around people management. Retention programs, remote work models, and flexible benefits often face pushback from legacy leadership styles.
The challenge: Shifting long-standing mindsets and outdated systems takes time and strong leadership.
7. Measuring Impact is Difficult
It's easier to measure policy sales than employee happiness. Many insurance firms struggle to track the ROI of wellbeing or inclusion efforts, which makes it harder to secure buy-in from decision-makers.
The challenge: Without solid data, even well-intentioned initiatives can be underfunded or deprioritized.
Final Thought
These challenges are real-but not insurmountable. Insurance companies that take these issues seriously, listen to their people, and commit to meaningful change will be the ones that not only survive but lead the way forward.
Because in an industry built on protection and promises, the first promise should always be to your people.
References List
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Holliday, M., 2021. Oracle Netsuit. [Online]
Available at: https://www.netsuite.com
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“Yes, this is spot on. We’ve faced similar issues in banking especially around burnout and lack of meaningful progression. Insurance firms face even more pressure with regulatory demands and emotional labour in customer-facing roles. If these challenges aren’t addressed, turnover will only keep rising.”
ReplyDeleteYou have highlighted that employee retention and well-being challenges are not only relevant to the insurance industry but also to most organizations that suffer from these challenges. When looking at the organizational side, its root cause is the organization's wealth. So, organizations should find a solution for that, and employees should focus on their personal growth.
ReplyDeleteCommented by Lahiru Randima
This breakdown offers a clear-eyed view of the systemic challenges the insurance industry faces in evolving its people strategies. Each point highlights a critical friction between intention and execution from the stress-heavy nature of core roles to the often superficial approach to wellbeing and inclusion. The commentary on an aging workforce and unclear career paths adds urgency to the need for proactive talent management and knowledge transfer. Importantly, it calls out the cultural inertia and data blind spots that make real progress difficult. Overall, it’s a strong reminder that solving these issues requires more than programs it demands mindset shifts, leadership alignment, and sustained, measurable action.
ReplyDelete"Gayantha, another strong and organised post. You've done a fantastic job of bringing to light the actual challenges that businesses have keeping talent, particularly in such a complicated sector. I thought it was great how you connected each problem such as burnout, generational differences, and performative inclusion to more fundamental problems with leadership and organisational culture. What particularly stuck out was the reminder that meaningful retention extends beyond superficial benefits. Keep up the good job; your observations are relevant and influential.
ReplyDeleteThis introduction sets the stage perfectly. As the insurance industry evolves, the shift from product-centric to people centric strategy is not just timely, it is essential. While the commitment to improving retention, wellbeing, and inclusion is encouraging, this honest acknowledgment of the challenges ahead adds depth and realism. It is a great reminder that meaningful cultural change requires more than good intentions. It takes strategy, persistence, and a willingness to face the hard reality.
ReplyDeleteYou said the measurement of the impact of well-being and inclusion initiatives is challenging. What are some effective ways you have seen companies tracking these efforts and linking them to business outcomes?
ReplyDelete