A strategy to preserve insurance critical skills

By: SAIA Corporate Affairs

South Africa's non-life insurance industry faces a critical shortage of specialised skills. Besides competing for new talent with other financial industries in the Life and Banking industries, the 2023 KPMG South African Insurance Industry Survey claims over 30% of skilled non-life insurance professionals are nearing retirement.

To address the skills shortage, the South African Insurance Association (SAIA), representing the non-life insurance industry, launched its Retiree Repurposing Programme (RRP) in 2023, a 12-month mentorship programme, a pioneering initiative to pass on retirees' expertise and decades of experience to the next generation of industry leaders.

While the programme benefits the young rising stars, it also provides purpose and satisfaction for those who have for many years contributed to the industry and want to pass on their skills and knowledge to up and coming professionals. Michael Duncan, [Executive Consulting Services], an RRP mentor for the 2024 cohort, said, “I regard it as a privilege to have been invited to participate in this year’s RRP. I count myself extremely fortunate to have enjoyed a long and rewarding career in the insurance industry and I feel that it is only appropriate that I give something back.”

Pairing experienced retirees with emerging professionals ensures invaluable expertise and decades of industry knowledge are passed on to the next generation of industry leaders. This mentorship programme is bridging the skills gap, particularly in niche areas such as marine, engineering, crop agriculture insurance, and non-motor loss adjusting.

Now in its second year, the programme is run in partnership with the Insurance Sector Education and Training Authority (INSETA), the Insurance Institute of South Africa (IISA) and the Financial Intermediaries Association (FIA). The RRP offers several key benefits to retirees and junior management candidates. First, by retaining valuable skills and knowledge, the RRP contributes to the long-term sustainability and growth of the non-life insurance industry. Second, retirees benefit from the acknowledgement of sharing their extensive knowledge and experience, transferring valuable expertise to the next generation of leaders, fostering a culture of continuous learning and development within the organisation.

"I have long believed that "seasoned" insurance professionals have much to offer younger people coming through in our industry, who perhaps may possess the requisite qualifications but lack the many years of practical experience,” said Duncan. “The RRP will contribute to better equipping our talented young people to take on senior management roles in the future and benefit the industry at large. "Mentors draw on extensive life skills and provide the mentees with a different perspective. The mentee gains confidence and enhanced social and technical skills essential for their career. Duncan said, "I have always tried to keep myself informed about the new and emerging risks and make a point of sharing this information with my mentees. We often discuss topics as diverse as the impact of global warming, cybercrime, AI, microplastics and alternative risk transfer options, to mention but a few. I feel that it is essential for my mentees and, indeed, all risk professionals to stay informed about these developments so as to be able to address them with their clients."

Even though the programme is heavily loaded in terms of passing on technical skills, the programme also includes leadership and strategy elements, preparing mentees for future senior management roles. "While there will be requirements (and opportunities) to share one's technical knowledge and experience, there is often a need to assist the mentee in addressing workplace challenges," said Duncan. "I have learnt that no two mentees have the same requirements of their mentor… hence, it really is a journey for both the mentor and the mentees."

Despite the industry's challenges, Duncan believes the programme is significantly contributing to the sustainability and competitiveness of South Africa's non-life insurance industry. "The risk environment is ever-changing, requiring a different, more innovative mindset. This is one of the most challenging, yet exciting, times for young people to work in the non-life insurance sector," he maintains.

Global warming is affecting natural catastrophe risks in certain areas, pandemic-related business interruption is virtually uninsurable, and liability insurers are concerned about Per- and polyfluoroalkyl substances (PFAS) - "forever chemicals" - and microplastics. These examples highlight the need for alternative risk transfer options to meet clients' needs. "Our industry is going to need to provide these options, and this will require skilled young professionals with the necessary skills and insights. The RRP has an important role to play in this regard," he said.

Duncan is optimistic about the future. "Our industry employs many talented young people, so the future is very bright. In my opinion, the RRP is an excellent initiative on the part of SAIA to better equip these future leaders with the tools, knowledge, and experience they need to succeed.”