Insurtech Talent Development in Hong Kong – From Insurance to Insurtech: Strategies for Building a Sustainable Talent Pipeline

4 From Insurance to Insurtech: Strategies for Building a Sustainable Talent Pipeline Executive Summary Insurtech Talent Challenges: Attract, Train, and Retain In the Insurance Industry Dialogue: Insurtech and the Real Game Changer seminar we hosted in June 2023, participants highlighted that the most urgent issue for insurtech is having sufficient talent with the technology and soft skill capabilities needed to achieve a smooth transition to the industry’s new technologies and systems. With the increased focus on digital platforms that require advanced analytics, AI, cybersecurity, and human-centered designs, Hong Kong’s insurtech industry can only achieve the promise of better serving customer needs if it can hire and retain sufficient talent with these in-demand skills. Talent numbers fall short, and industry turnover is high. The insurtech industry inside and outside Hong Kong faces perhaps the toughest challenge among fintech verticals in attracting and retaining staff, especially young professionals. Singapore and the UK, two countries we look at in this report, face the same issue. In general, this is because the insurance industry as a whole has an image of being dull and stuffy, especially in comparison with other emerging tech sectors. Furthermore, while local universities are one of the main sources for talent recruitment, students may not have sufficient exposure to insurtech companies to merit their interest. The industry could benefit from more active participation in events such as job fairs, and increase education aimed at parents, who strongly influence career choices. The Hong Kong SAR Government, the regulatory bodies and private sector firms have launched training platforms for students and recent graduates to enter the insurance sector. However, the skillset gaps and skills categories demanded by the industry are not yet clearly defined or addressed. Regulatory bodies could play a more active role in coordinating industry efforts to help steer a more cohesive talent development pipeline to support insurtech growth. In addition, to meet needs, reskilling courses for existing professionals require more in-depth specialization and availability. To recruit and retain top talent, insurance/insurtech companies could consider: • Offering competitive compensation and desirable benefits • Clearly communicating their culture, mission and values • Providing career growth opportunities and continued specialist training Lastly, Mainland China and international talents can help bring in skills, capital, and networks that can bridge Hong Kong to the global market and help it become a major international risk management center.