I&T Executive Summit Keynote: Insurers Must Create "Millennial-Friendly" Brands

What's the biggest challenge facing the insurance industry? If the concerns of attendees at this week's Insurance & Technology Executive Summit are any indication, the urgent need to recruit and retain an effective workforce for the future ranks at the very top of most management priority lists.So the comments of the Executive Summit's keynote speaker, Rob Salkowitz, a writer and consultant specializing in the social implications of new technology and author of "Generation Blend: Managing Across the Technology Age Gap," were particularly relevant for the senior executives who participated in this year's event. "There's one basic important question," Salkowitz told the Summit attendees. "Where is the next generation of insurance professionals going to come from?" Clearly, he said, these professionals -- whether working in IT, claims, sales, or any other service-related area -- will come from the population segment known variously as Generation Y or Millennials. But so far most insurance companies have not done enough to convince these younger workers that the insurance industry can provide the kind of workplace, culture, and tools that they seek. For example, Salkowitz said, the next-generation workforce is "very collaboration and team-oriented." This stems directly about how they were raised -- or "socialized," in Salkowitz's words. Furthermore, "they literally are marinated in digital culture," including videogames and mobile devices. So "Technology is transparent to them, the same way TV is transparent to Boomers," he said, adding that another important characteristic about Millennials that insurers must understand is that "they are naturally multi-tasking." None of this means that 20-somethings come to the workplace with knowledge of specific industries such as insurance -- but according to Salkowitz, this in and of itself is not daunting to them. "They were educated for self-esteem," he said. "Many don't see a lack of experience as a barrier to rapid career advancement." At the same time, their preferred method of learning is tapping into networks -- a practice Salkowitz described as "just-in-time competence." Perhaps the most critical change from previous generations, as far as insurers should be concerned, is that for Millennials "there are fewer boundaries between work and life," Salkowitz explained. Also, "they are looking for opportunities, not careers. They [expect] to have 10 to 15 careers -- not jobs," he emphasized. These attitudes and expectations do not jibe well with the perception (and perception often is reality) that insurance "is an older industry that is not innovative in its approach to technology," Salkowitz said. "They are looking for a good work experience that includes flexibility. Technology is a key enabler of that -- it facilitates the lifestyle and workstyle that Millennials value above all. Access to technology at work is critical." It's not as simple as implementing the latest application development tools are architectural concepts. It's actually consumer technologies that are more relevant in terms of creating the kind of culture and environment Generation Y seeks, Salkowitz said. "Consumer technology sets expectations. It is leading the way and shaping the experiences most people have," he explained. Furthermore, this is creating a "more sophisticated and knowledgeable user base than we're used to." And, in a pointed message to the Executive Summit audience, Salkowitz emphasized that the responsibility for changing insurers' cultures and convincing Millennials to join the industry doesn't lie wholly with human resources -- it's an IT obligation, as well. Together they must partner to create what Salkowitz calls "a Millennial-friendly brand."

Katherine Burger is Editorial Director of Bank Systems & Technology and Insurance & Technology, members of UBM TechWeb's InformationWeek Financial Services. She assumed leadership of Bank Systems & Technology in 2003 and of Insurance & Technology in 1991. In addition to ... View Full Bio