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

42 From Insurance to Insurtech: Strategies for Building a Sustainable Talent Pipeline Insurtech is revolutionizing the insurance industry at a great pace. It carries the merits of simplifying traditional manual procedures, thereby reducing administrative costs and creating opportunities for innovation in various types of insurance for impacting all stakeholders. The digital transformation of the insurance business enabled by insurtech is especially being welcomed by clients, as it empowers them with enhanced control over their plans and finances. With the help of insurtech, more diversified premium levels and personalized protection insurance products are now being offered to the clients by the insurers. From the suppliers’ angle, insurtech offers multiple advantages, and its appropriate deployment can lead to better data capture at source, collaboration for improved models, enhanced predictive analysis, and improved prices, services and products. Hong Kong has witnessed an extraordinary growth in its fintech sector during the last several years. This growth has had positive spillovers on insurtech in the city as well. Consequently, Hong Kong’s insurance industry has entered into a new era of digitalization where new opportunities have been created for the insurance industry. However, the overall technological capability of insurance firms in Hong Kong is low. The market for insurance talent in Hong Kong is very competitive as the industrial players fiercely seek the manpower who can help them advance technologically, innovate and remain ahead of their peers. Moreover, the insurance sector in Hong Kong is facing substantial difficulty in attracting and retaining insurtech manpower. Talent retention and acquisition has been regarded as the most pressing concern currently facing Hong Kong’s insurance industry, followed by digital transformation, uptake of insurtech and regulation. There is a strong need to upskill the current workforce of the insurance industry on insurtech especially the managerial and operational staff. A major challenge hindering the attraction of talent to the insurance sector stems from the prevailing perceptions that it is an outdated and unattractive industry compared to other emerging tech sectors, especially among the younger generations. Hence, it is vital to strengthen communication efforts to reinvent and elevate the industry’s image with a focus on highlighting the important roles and opportunities insurance encompasses. For instance, there is a great need to educate people about the importance insurance plays in the development of the Hong Kong economy, both in maintaining stability and enabling growth. Without insurance, many activities cannot be conducted due to legal requirements. Educating the public about the importance of insurance in general and the wide variety of roles that need to be filled in insurtech is necessary to shift people’s perceptions. Reaching parents, as well as secondary school students, could be instrumental, as the former will influence their children in their career choice. Clearing up common misperceptions about careers in insurtech and insurance is crucial. To this end, the HKFI has organized school talks and published comic strips and book series to help educate people about the diverse roles in creating and handling insurance products. By communicating both the benefits of the industry as well as its need for a wide variety of talented people, stakeholders can help create greater interest in insurtech careers.