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

17 40 Insurance Training Board (2020). Manpower Update Report Insurance Industry . https://vpet.vtc.edu.hk/wiki/images/1/ 13/2020_Insurance_Industry_Manpower_Update_Report_eng.pdf 41 Zurich Insurance Group and University of Oxford (2021, May). Shaping a better future of work . https://www.smithschool. ox.ac.uk/sites/default/files/2022-04/shaping-a-brighter-future-of-work-global-and-local-market-insights.pdf 42 Ibid. Hong Kong’s Insurtech Talent Landscape: A Comprehensive Overview Insurance companies in Hong Kong have recently been embracing virtual technologies and are investing in AI and data analytics to bring down costs and increase the efficiency of their systems. These technologies are also helping them in developing personalized marketing campaigns, conducting risk assessment, determining premiums, predicting claims and the detecting of frauds.40 As the adoption of insurtech in Hong Kong picks up at a greater pace, some tasks in the insurance business may disappear or fundamentally change. New roles will also emerge as disruptions are brought to the fore through the use of advanced insurtech leveraging tools like AI and data analytics. Currently, reskilling in the insurance industry of Hong Kong is focused on enhancing employees’ capabilities in an ever-growing data-driven environment and on virtual management and leadership skills. Private insurers are quite active in the relevant training space for keeping their workforce updated and relevant. For example, Zurich Hong Kong offers training courses that include conventional technical and remote working trainings. The focus on sustainability education and virtual team management has also been increasing and most of the programs of Zurich Hong Kong are delivered and developed internally.41 At present, there are several challenges in the supply side of insurtech manpower and the development of a sustainable pipeline of local insurtech talent in Hong Kong. There is a realization among employees that improvement in professional skills is required for them to work more effectively in the insurance sector. A Zurich-Oxford consumer survey in 2019 indicates that about 58% of the respondents (insurance sector employees) had positive intentions to improve their professional skills if it would take one evening a week of their leisure time for six months (Exhibit 3). However, there are only two local tertiary institutions and the Vocational Training Council (VTC) that offer subject matter courses for the insurance industry.42 These courses impart basic knowledge in actuarial science and risk management. Moreover, there are hardly any education or skill providers who offer a full range or suite of specialized technical courses in insurance. Some institutional committees have initiated debates regarding these challenges in Hong Kong. Exhibit 3: Intentions to take on training to improve professional skills Source: Shaping a better future of work 2021 Likely Unlikely 42% 58%