Focus on Talent: bringing benefits to businesses
Ahead of Bermuda:Re+ILS’s Focus on Talent this month, we conducted a survey of leaders in the Bermuda reinsurance industry to find out their views on different elements within human resources such as employee motivation, talent development and diversity.
In the first of two reports, we highlight the key results and market comments concerning talent development, while the second article focuses on employee trends such as benefit schemes, inclusive environments and appraisals.
These areas of HR are equally important yet all fairly new. In 1901, amid the chaos of employee walkouts and strikes, the first HR department was said to have been created at the National Cash Register Co. in Dayton, Ohio. Tasked with handling worker grievances and discharges, this handful of staff paved the way for what would become a fast-growing industry.
Human resources has evolved dramatically since, and today comprises multiple departments ranging from training and employee compensation to succession planning and health and safety. Yet some might say the main thrust of HR is talent acquisition, and having a strong HR department with a clear talent strategy is key to attracting the best employees.
HR takes centre stage
When we asked our survey participants whether human resources and talent development were important for the re/insurance sector, the answer was an overwhelming yes. A resounding 86% of respondents said they were deemed very important or important by the company at which they worked.
One respondent wrote: "Human resources and talent development are crucial in the insurance industry for driving innovation and maintaining a competitive edge. These efforts ensure a workforce that is skilled, adaptable, and ready to tackle the sector's evolving challenges, from technological advancements to regulatory changes."
They added: "Investing in talent not only enhances product innovation and customer service but also attracts and retains top professionals, fostering a culture of excellence and resilience vital for long-term success."
The insurance industry is suffering from a skill shortage, making investment in talent management all the more crucial in ensuring a company's long-term success, especially when faced with a stark generational gap between older, knowledgeable specialists and inexperienced newcomers. One participant wrote: "As the current executive leadership base ages out, it's important to have a strong pipeline of junior and mid-level talent to backfill."
Even if a company does possess that strong pipeline, is it investing enough in training so that knowledge doesn’t leave the building when the experts retire? We asked our survey participants.
Companies are prioritising talent development
Reassuringly, over four-fifths of respondents felt their company gave a lot of importance to HR and talent development. "It's the key to our growth plans," explained one, while another praised their workplace's ethos, saying it "prioritises talent development by offering generous professional development stipends, structured training programmes, and early hands-on deal engagement".
They elaborated: "This approach equips employees with the skills and experiences needed for career growth and positions (the company) as a nurturing ground for future industry leaders."
Only 17% stated the opposite, with one participant going so far as to say that HR and talent development were nothing more than "secondary thoughts in conversation".
Talent development embraces a wide array of branches such as recruitment and training, creating a good ethos and work environment and of course, salary. Respondents were very clear about which branches they prioritised.
What the workers want
Participants weren't happy about recruiting outside experienced professionals, perhaps because they would prefer being upskilled and redeployed themselves. They also weren't very concerned with having support at work for physical and mental health issues, ranking this the least important part of talent development.
Several respondents felt all-of-the-above were important, with one marking a high 10 across all segments. However, the most important aspect of talent development was by far a healthy and collaborative work environment, followed by professional development (including training), a unique company ethos and remuneration in fifth place, showing money is not in fact everything.
One respondent observed: "Any employee will go above and beyond when they are in a healthy working environment," while another added: "The firm's success is based on its employees and ensuring we attract the best in breed. Compensation, training and ethics are the backbone of their success".
Being the best
Evidently, some companies are getting it right, so we asked our participants which ones.
A range of companies were cited from both within and without the (re)insurance industry, and according to participants, they were chosen because they had "executed better strategies than peers and hired best talent"; "empowered younger leaders" or "experienced leadership".
One company in the (re)insurance sector was said to "excel in talent development by investing heavily in its workforce, providing ample professional development opportunities, engaging training programs, and early exposure to significant deals."
The respondent continued: "This strategic emphasis not only boosts employee skills and career trajectories but also cements its reputation as a leading nurturer of future insurance industry leaders. Through these initiatives, the company demonstrates a deep commitment to empowering its employees and driving industry innovation from within."
At the United Nations conference on Trade and Development in Geneva 1990, a seminar report on 'HR Development in the Field of Insurance' noted: " The insurance industry should be convinced that investment in HR Development will provide benefits to the entire industry and positive return on investment."
According to our survey, it would appear that insurers are indeed convinced. A lot has changed since 1990, but one benefit of talent management remains the same: the successful retention of that talent. Our next spotlight on talent development will reveal how to keep employees staying where they are.
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