The Retirement Wave: A Massive Exodus of Expertise

The numbers paint a sobering picture. With the median age of insurance industry employees at 45 compared to 42.2 for the overall U.S. workforce, and one-quarter of the insurance workforce already 55 or older, the demographic cliff is undeniable. The number of insurance professionals age 55 and older has increased 74% in the last 10 years, and over the next 15 years, 50% of the current insurance workforce will retire, leaving more than 400,000 open positions unfilled.

This exodus represents more than headcount, it's institutional knowledge walking out the door. From underwriting expertise to claims management acumen built over decades, the loss threatens operational continuity and customer service quality.

The Skills Gap: Old Guard Meets New Demands

But the challenge isn't just about filling empty desks. It's about finding people who can do the work that needs doing today and for the next decades.

A 2024 McKinsey report found that 60 percent of insurance roles now require skills in data analytics, AI, or cybersecurity. The problem? Most of the workforce that's walking out the door never needed those skills to succeed. The veterans who built their careers on relationship management, deep product knowledge, and decades of underwriting intuition are being replaced by roles that demand Python proficiency and machine learning literacy.

This isn't a criticism of experience, it's a recognition that the job has fundamentally changed. And it's left firms caught between two realities: they're losing expertise they desperately need while simultaneously unable to find the new talent the market demands. And the pressure is only intensifying. 68% of carriers plan to increase staff in the next 12 months, a 12-point increase from the previous year, driven by anticipated business growth. The industry needs to hire MORE people at precisely the moment when the labor pool has never been smaller.

Insurance industry unemployment stands at just 1.5%, compared to the national rate of 3.6%, meaning qualified candidates are already employed and happy to stay put. Plus, replacing an employee costs an estimated one-half to two times that employee's annual salary.

For a $100,000 position, that's $50,000 to $200,000 in replacement costs, money that could be invested in retention and development instead. When you're racing to fill hundreds of thousands of positions while simultaneously bleeding talent, those costs multiply fast.

The Perception Problem: Insurance's Image Crisis

Even if the industry could train its way out of the skills gap, there's another obstacle: young people aren't interested. And while baby boomers exit, younger generations aren't rushing to fill their shoes. A survey by The Institutes found that eight in 10 millennials have limited knowledge of insurance career opportunities. When your target demographic doesn't understand what you do or why it matters, attracting them becomes exponentially harder. To many younger workers, insurance feels invisible, outdated, or worse... boring??

It's an industry their parents worked in, not one they imagine building a future in. The insurance industry ranks below mining and manufacturing when it comes to attracting younger talent, a troubling position for a sector that needs to fill hundreds of thousands of positions in the coming years. This perception gap has real consequences. While insurance companies scramble to fill hundreds of thousands of roles, the talent pool they're fishing from has largely written them off before even considering an application.

The Competition Problem: Everyone Wants the Same People

And then there's the competition. With U.S. unemployment at a historic low of 3.5 percent in 2025, insurance isn't just competing with itself for talent, it's competing with everyone.

Tech companies offer equity and the promise of disruption. Fintech startups offer innovation and flexibility. Consulting firms offer variety and prestige. And traditional financial services firms offer similar stability with better-known brands.

Meanwhile, insurance is left making the case for why someone should choose claims adjusting over product management, or underwriting over data science at a Silicon Valley firm. 70% of insurance professionals believe the industry lags in offering competitive compensation and growth opportunities. When even your own employees think you're behind, convincing outsiders becomes nearly impossible. Higher salaries, remote work options, faster promotions, learning budgets, modern tech stacks, these aren't perks anymore. They're table stakes. And insurance, by and large, is still figuring that out.

Strategic Solutions: Turning Crisis Into Competitive Advantage

The challenges are daunting, but they're not insurmountable. Forward-thinking insurance organizations are already adapting, and the firms that act decisively now will emerge stronger, more innovative, and better positioned for long-term success. Sometimes, the fastest way to close the skills gap isn't always hiring new talent, it's unlocking the potential in the people you already have.

Upskilling and reskilling programs are proving transformative. One mid-sized MGA launched a data analytics training program and saw a 30 percent boost in underwriting efficiency within six months. A 2024 LinkedIn Learning report found that 94 percent of employees stay longer at companies that prioritize development. When you invest in your people, they invest in you.

Focus training on the skills that matter most: AI and machine learning literacy, advanced data analytics, cybersecurity fundamentals, and digital customer experience design. But don't stop at technical skills. Soft skills like adaptability, communication, and problem-solving are equally critical as roles evolve.

Mentorship programs create a bridge between generations. When retiring experts transfer their institutional knowledge to newer employees, everyone wins. A TPA that paired senior claims adjusters with junior staff saw a 25 percent improvement in team performance. A 2024 Gallup study shows employees in mentorship-rich environments are 50 percent more likely to stay, preserving not just knowledge but loyalty.

Rebuild Your Employer Brand: In a market where 75 percent of job seekers research company reputation before applying, your employer brand is your competitive weapon. Insurance needs a narrative overhaul. Stop leading with "stability" and start showcasing innovation, purpose, and impact. Highlight the meaningful work your teams do—from helping families rebuild after disasters to enabling businesses to take calculated risks that drive economic growth. One carrier saw a 40 percent increase in applications after revamping their employer branding to emphasize innovation, work-life balance, and career growth opportunities. They didn't change their company, they changed how they talked about it.

Practical steps include:

Showcasing employee stories and career progression on social media
Creating transparent salary ranges and benefits information
Highlighting flexible work arrangements and work-life integration
Demonstrating your commitment to professional development
Emphasizing your use of cutting-edge technology

Embrace Technology as an Enabler: Technology isn't replacing humans in insurance, it's amplifying what they can do. AI and automation handle the repetitive work, freeing your team for complex problem-solving, relationship building, and strategic thinking. A 2024 Gartner study found that companies using AI-driven tools reduced operational costs by 15 percent while increasing employee satisfaction by 20 percent. Use automation for claims processing, underwriting data analysis, risk assessment, and customer service triage.

This doesn't eliminate jobs; it elevates them. Your claims adjusters spend less time on paperwork and more time on complex cases requiring human judgment. Your underwriters focus on nuanced risk decisions rather than data entry. And here's the bonus: tech-savvy candidates want to work for tech-forward companies. Showcasing your technology investments makes you more attractive to the exact talent pool you're trying to reach.

Get Strategic About Workforce Planning: Stop reacting and start anticipating. Strategic workforce planning uses data analytics and forecasting tools to predict talent needs before they become crises. A 2023 Willis Towers Watson study found that 65% of insurance companies struggle to predict hiring needs accurately. The result? Understaffing, employee burnout, reduced client satisfaction, and missed growth opportunities. But it doesn't have to be this way. A regional carrier that implemented dynamic workforce planning reduced hiring delays by 35 percent. A 2023 Mercer report notes that companies with strategic workforce planning are twice as likely to achieve long-term growth.

Key elements include:

Regular skills assessments to identify current and future gaps
Succession planning for critical roles
Scenario planning for different business growth trajectories
Partnership with specialized recruiters who understand insurance talent

Build for Diversity and Adaptability: The future workforce won't look like the past workforce, and that's a good thing. Diversity across age, skillset, cultural background, and professional experience improves decision-making, drives innovation, and enhances client engagement. Insurance firms that build inclusive teams are better positioned to solve complex challenges and attract top talent across all generations. Don't overlook experienced talent, either. Near-retirees and recent retirees often seek flexible, part-time, or project-based work that leverages their expertise without requiring full-time commitment. The Bureau of Labor Statistics finds that 27 percent of people aged 65 to 74 are actively seeking employment, making this the fastest-growing segment of the workforce. Their institutional knowledge, combined with proven adaptability, makes them invaluable.

Prepare for Roles That Don't Exist Yet: As technology reshapes insurance, new roles are emerging: AI ethics specialists, customer experience architects, predictive analytics experts, cybersecurity specialists, and digital transformation managers. Firms that anticipate these roles and develop talent pipelines now, through partnerships with universities, apprenticeship programs, and internal development tracks, will gain a significant competitive advantage over those waiting for the "perfect candidate" to appear.

How The Jonus Group Solves Your Talent Challenges

Understanding the problem is one thing. Solving it is another.

For over a decade, The Jonus Group has been the insurance industry's trusted partner for navigating complex talent challenges. We don't just fill positions, we build strategic workforce solutions that position your organization for long-term success.

What Makes Us Different

Deep Insurance Expertise: We speak your language. Our team understands the nuances of underwriting, claims, risk management, and insurance operations. We know the difference between a commercial lines underwriter and a specialty lines underwriter, and why it matters for your business.
Proactive Talent Pipelines: We're not waiting for you to have an emergency. We maintain active relationships with insurance professionals across all experience levels and specialties, meaning we can move quickly when you need us.
Skills-Based Matching: We don't just match resumes to job descriptions. We assess technical capabilities, cultural fit, growth potential, and long-term alignment with your organizational needs.
Comprehensive Solutions: Whether you need a single senior underwriter, a team of claims professionals, or a complete workforce strategy overhaul, we scale our services to your needs.

Our Services

Direct Placement: Finding the right permanent employees who will grow with your organization for years to come.
Contract Staffing: Flexible talent solutions for project work, seasonal demands, or coverage during transitions.
Workforce Strategy Consulting: Helping you build proactive talent plans, succession strategies, and development programs that reduce dependency on external hiring.
Training and Development Support: Partnering with you to design and implement upskilling programs that close technical gaps and retain your best people.

Proven Results

Our track record speaks for itself:

Thousands of successful placements across agencies, carriers, MGAs, TPAs, and brokerages
35% average reduction in time-to-fill for critical roles
Above average retention rate after one year for our permanent placements
Trusted partner to both Fortune 500 insurance companies and regional specialists

We understand that every hiring decision impacts your ability to serve clients, retain institutional knowledge, and compete effectively. That's why we treat your talent challenges as our own.

Conclusion: The Future Belongs to Those Who Act Now

The insurance talent shortage isn't going away. With 400,000 positions to fill, limited interest from younger generations, and an accelerating skills gap, the next few years will separate industry leaders from those left behind. But crisis creates opportunity.

The organizations that: