A strong executive team is essential for fulfilling your organization’s long-term potential. However, as the scope of leadership expands and the need for skilled leaders intensifies, many insurers are experiencing a talent drain at the executive level. Our Q3 2025 Insurance Labor Market Study revealed the demand for executive-level roles across all functions is at the highest recorded, with 4% of carriers planning to add executives in the next 12 months.
Not surprisingly, while executives are in high demand, they are also among the most challenging of all positions to fill for the fourth consecutive survey – second only to actuarial roles. Additionally, we’re seeing the industry continue to age and many leaders nearing retirement. Currently a quarter of the insurance workforce is aged 55 and older, according to the Bureau of Labor Statistics. As part of your larger succession planning efforts, it’s essential to focus on what your organization can do now to prepare for a smooth generational transition at the executive level.
Prepare your next layer of talent.
Unemployment for insurance carriers and related activities is low – at 2.3% compared to 4.2% for the overall U.S. economy. Although there is limited available insurance talent, more than half of
carriers are planning to increase their headcounts in the next year. Given the competition for top talent, retaining and developing your high potential and high performing employees is essential. These are often the individuals who can later step into key executive-level roles with the right training and preparation.
For those who may be potential successors for these positions, aim to identify opportunities to strengthen and build the skills necessary for advancement. When the time comes, having a great internal candidate who can confidently step up into a role means you were successful in your development and preparation. However, there will also be occasions when those individuals are not quite ready timing-wise or there is no one internally who is the right fit.
Be proactive and creative with external hires.
Once you’ve explored options within your current workforce, there may still be gaps to fill and areas where you need to bring in outside talent. Rather than waiting to hire an executive when a need arises – which is often already too late – be strategic in bringing on individuals you can grow and develop, as well as those who can help prepare others within your team.
Consider hiring individuals with a shorter career runway. Often, when professionals are hired into a position, they may be ready for the job and plan to stay in it for the next 15 years. This may be the right move for your organization; or, it could create a barrier for those within your existing team who need about three to five more years before they are ready to take the next step. By hiring someone from outside the organization who is nearing the end of their career, you can maintain continuity, while leveraging their expertise to train and develop your next layer of talent.
Be open to promoting people into a position. You may have applicants who are not necessarily ready for a position on paper, but can be hired into the role and developed. These are typically high potential individuals who have proven their aptitude for ongoing learning and ability to rise to challenges.
Explore candidates with similar experience. In the current market, you limit yourself if you are too rigid in a role’s requirements. You may need to branch out to executive-level individuals who work in similar lines of business, or consider those who have held the role at smaller companies and are looking to move into a larger environment. Be realistic in what is truly required to be successful and the traits and transferable skills that are truly crucial to success.
Ensure you’re focused on the future, while building your bench for both the long- and shorter term. Consider your current executive team and be realistic in preparing for them to eventually step down, looking both internally and externally for those you can develop to take their place. By acknowledging the increasing competition for executives and being creative in your talent acquisition and development, you’ll be prepared to best avoid the executive-level talent drain.