Gen Z talent is a rising star for independent insurance agencies

Gen Z professionals, the newest generation to enter the workforce, are a large, diverse, well-educated group who bring a radically different perspective to their careers. By 2035, they will be the largest age cohort in the workplace.  

Nearly 100 Gen Z insurance professionals took part in Vertafore’s 2024 independent agency workforce report. These respondents—between 18 and 27 years old—revealed plenty about how they are entering and thriving in independent agencies.  

Gen Z insurance professionals want more than compensation

One-third of respondents who make hiring decisions said “compensation issues” affect their ability to hire new talent. The good news is that Gen Z is motivated by factors outside of paychecks.  These professionals were the least likely to answer “compensation” compared to other respondents when asked what factor is most important in their careers.  In fact, 37% answered compensation compared to 45% for their older counterparts.  

Instead, Gen Z is searching for jobs that provide work/life balance, flexibility, and purpose-driven work—these themes came through in the survey.

Gen Z respondents ranked the following factors above compensation:

  • A healthy work-life balance: 46%
  • Interesting work: 50%
  • Engaging with people in the community: 51%
  • Career growth opportunities: 53%

Many of these recruiting woes can likely be solved by increased recruiting efforts to attract young people into agency careers that emphasize these non-financial factors.

For Gen Z, insurance careers are fulfilling

When 1,017 young people in the US and UK were asked about their career aspirations, 52% said they had very little idea about what an insurance career would involve, and 67% thought a job in insurance would be boring.

However, Gen Z responses in Vertafore’s survey suggest that once in the seat, younger workers find a lot to be happy about with an insurance career. They were overwhelmingly positive and enthusiastic about the benefits of working in an independent insurance agency. Almost three-quarters (72%) reported plans to stay in their careers for six or more years, and 71% said they would recommend a career in insurance to a friend.  

The likelihood of them pointing a friend to an insurance career is 6% higher than for older age groups.

These young professionals also offered their thoughts about how their peers might be steered into an insurance career. Their comments were generally positive and focused on how their positions were interesting and full of opportunities for learning and growth.

Here are just some of their answers for why they would recommend their careers to others:

  • My job looks different every day!
  • There are so many new things to learn.
  • A job in insurance is never a boring office job.
  • There’s always room for growth.

These responses track with larger data sets that measure Gen Z career satisfaction. In an analysis of early talent trends, Handshake describes Gen Z’s desire to learn and grow in their careers. 87% of undergraduates said learning and development benefits are important or essential for job opportunities.

Young insurance professionals believe insurance can attract Gen Z talent

For survey takers involved in their agencies’ hiring decisions, 31% reported that “younger people are not interested in insurance careers.” But Gen Z respondents have advice about making insurance more attractive to new talent. In their comments, many suggested the industry could emphasize factors that matter to their generation: interesting work, development opportunities, and secure career growth potential.

To draw the attention of their younger counterparts, respondents offered these words of wisdom to the insurance industry in their comments:

  • “Do more to make people aware of the potential of career growth and the limitless opportunities an insurance career offers.”
  • “Show how easy it is to grow. There is something that interests everyone in insurance. “Many people don’t realize how many industry career opportunities exist.”
  • Promote the opportunities for personal growth and the opportunity to become licensed quickly. There are so many perks, and we can do more to advertise them.”

These comments speak clearly to the generation-related hiring issues agencies report. Hiring managers can overcome these recruiting difficulties by emphasizing the outstanding career growth and development opportunities that come hand-in-hand with agency positions.

Gen Z is rapidly entering the workforce, and, according to our accounts, they are enthusiastic about lasting careers that satisfy their sensibilities. Our results show that a group of young professionals is ready to become the next employee force of independent insurance agencies. 

Read the full report here: The state of independent agencies in 2024

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