INSURING TALENT TO ENSURE RETENTION

TO RETAIN TALENT IN TODAY'S MARKET, INSURERS MUST OFFER MORE THAN PERKS THINH PURPOSE, GROWTH, AND a WORKPLACE People WANT TO BE PART OF

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In the nearly $5 trillion Indian economy, insurance is one of the fastest-growing sectors - forecast to expand at approximately 7.1% annually over the next five years, the fastest rate among G20 nations. However, sustaining this trajectory requires overcoming a critical hurdle: talent shortages and high attrition.

A recent KPMG analysis estimates the industry will need an additional 1,75,000 professionals by 2025, particularly in risk assessment, underwriting, analytics, and claims administration.

To attract and retain talent, insurance firms are ramping up hiring - some increasing their workforce by over 200% - and implementing measures such as three-month notice periods, enhanced incentive programmes, and referral policies that allow employees to earn a portion of the incentives awarded to their referred candidates, according to industry experts.

In recent years, high attrition has led to an increase in hiring and greater reliance on recruitment agents. Sector experts note that aggressive poaching among insurance companies has resulted in sales-side attrition rates exceeding 40%, prompting firms to develop strategies to curb the churn. Currently, around 70% of hiring in the sector happens through referrals, while reliance on HR consultants is about 10%.

THE GREAT RESIGNATION’S ENDURING FOOTPRINT

While insurer-specific attrition statistics are not publicly disclosed, broader data from the BFSI sector highlights the scale of the challenge:

Private banks reported annual attrition rates of 30%-40% in FY23-FY24, with Kotak Mahindra peaking at 50%, and Kotak, Axis, and Yes Bank all exceeding 30%, according to industry reports.

TeamLease data shows overall attrition of 103% among frontline BFSI staff, including an industry-wide average of 62% in insurance companies. Turnover among entry-level agents stands at 40%-50% annually.