As the insurance industry undergoes rapid transformation, it’s facing a critical talent dilemma. A wave of upcoming retirements threatens to drain decades of institutional knowledge, while evolving customer expectations and technological advancements are exposing glaring skills gaps across the sector.
These challenges were front and center during a panel discussion at the Women in Insurance Summit, where Krishna Patel, director of operations at Burns & Wilcox Canada, emphasized that the issue extends far beyond just hiring.
To stay competitive in a rapidly shifting market, insurers must focus on how they retain experience, embrace modernization, and foster cross-functional collaboration.
One of the most pressing challenges facing the insurance sector today is the quiet erosion of institutional knowledge, Patel said. With a significant portion of the workforce nearing retirement, the industry is poised to lose decades of accumulated expertise – a loss that won’t be easy to replace.
She cautioned that the upcoming wave of retirements could put newer insurance professionals at a disadvantage. With many early-career individuals now entering the field, they risk missing out on valuable mentorship and the opportunity to observe experienced colleagues in action – both of which are essential for developing practical knowledge in a complex industry.
“I think it's really important that we close that gap, because insurance, as most people know, is a black and white, and it's really about navigating the gray and making very nuanced judgments,” she said.
Patel emphasized that without deliberate strategies to bridge the knowledge gap between retiring professionals and new entrants, the industry will begin to experience the consequences – affecting not just individual organizational performance, but the overall effectiveness and resilience of the insurance sector.
Katie Dallas, vice president of underwriting at SRIM, shared a real-world example from her own office on how companies can overcome that hurdle.
One of her early-career mentors is approaching retirement after decades in a niche specialty program. To preserve that knowledge, Dallas’s team enlisted a third-party staff member to document the retiring expert’s insights and techniques while she trains a replacement.
“It's still not going to be the same as getting those stories in person. But we can try to capture and save all that knowledge she's gotten over the last 20 plus years in her field,” she said.
Another major skills gap emerging in the insurance sector stems from the accelerating pace of technological change.
While the industry has long been perceived as slow to modernize, Patel said it is now undergoing a digital evolution – and not all professionals are keeping up. As insurance organizations introduce more sophisticated systems, platforms, and AI-powered tools, employees at all levels are feeling the pressure to adapt.
This growing demand for digital fluency isn’t unique to insurance. In today’s consumer-driven landscape, clients expect the same convenience and personalization from their insurers that they experience in other industries. Whether it’s the ability to manage policies online, receive instant quotes, or file claims seamlessly, there’s a rising expectation for speed, ease, and customization.
“People are getting used to a certain level of convenience in their transactions, so they want insurance to be just as easy as ordering a shirt off of Amazon and getting it shipped to your house the next day,” Patel said.
To meet these expectations and remain competitive, Patel said insurers must invest in developing tech-savvy talent who can not only operate new tools but also rethink how traditional insurance services are delivered.
The third key talent gap in the insurance sector lies in the ability to think holistically across business functions, Patel said.
As insurers navigate an increasingly complex operating environment, there’s a growing need for professionals who understand how different departments – such as claims, underwriting, finance, and operations – interconnect.
Rather than working in isolated silos, today’s insurance professionals are expected to collaborate across disciplines and contribute to more integrated, strategic decision-making. Patel said that those who can see “the bigger picture” and understand how various functions influence each other are better equipped to identify efficiencies, mitigate risks, and drive smarter outcomes for the organization.
“I think that really allows for more effective collaboration between the different functions and smarter business decisions,” she said.
