Can younger employees unlock industry innovation?

Few market commentators dispute that innovation is key to a successful future for the UK general insurance (GI) industry. However, opinions vary about the extent to which the market’s innovation is specifically linked to younger employees.

Some thought leaders, for example, are of the view that late millennials and Generation Z – those born between the 1980s and 2012 roughly – are naturally more comfortable with technology due to its increased usage in the era they were born and are therefore more likely to be open to working together and trying new things.

When DistriBind – an insurtech that provides software to the insurance industry – was founded in 2019, the original strategy was to have a good mix of younger and more experienced workers. But around 50% of its workforce is now aged 30 or under.

Dave Connors, chief executive and founder at DistriBind, told Insurance Times: “That’s quite a high percentage, even for a software provider, but I reckon the proportion would be more like 10% [at] most insurers and brokers.

“Because we are looking to be innovative, it’s very helpful to have people coming in with an open mind. We had employees with a little more experience [in the business], but it didn’t work out as they were set in their ways.”

Connors believes that innovation entering insurance businesses on the coattails of younger hires without preconceived ideas could be useful across many of the industry’s subsectors – however he stressed that any new hires must always be merit based.

“We always hire the best person, screening for intelligence first, and have no conscious agenda with gender,” he added.

Young versus old?

NFP, a people and risk management business owned by Aon, is also looking for innovative people. But it does not target age groups.

Lucy Reed, talent acquisition executive at NFP, said: “Age is not an issue, but we are looking for people who are determined, creative and [have a] ‘can do’ [attitude]. It’s quite narrow-minded to put a label on people based on age.”

Inshur, an insurance provider for the on-demand economy, also stressed that sector-wide innovation is not about age and experience, but about mindset, adaptability and collaboration.

Similarly, while there are plenty of insurance roles where innovative mindsets are not the primary skill set required, this does not necessarily mean that these jobs should be considered exclusively the preserve of older people.

Laura Court-Jones, small business editor at comparison site Bionic, explained: “For many roles within insurance, employees have to adhere to strict FCA guidelines, procedures and compliance, which is almost the polar opposite of creative innovation.

“Therefore, jobs such as claims processes and underwriting are likely to attract process driven individuals who pay attention to details, whether young or old. If you’re older, that doesn’t necessarily mean you’re less creative.”

However, one must also bear in mind that some employers which express views on workplace issues could be bending over backwards not to appear discriminatory as ageism becomes an increasingly sensitive issue.

For example, research released in January 2025 by the Centre for Ageing Better charity found that one in four people felt that hiring someone over 50 did not make business sense on the grounds that these candidates would most likely be slow and inflexible compared to younger counterparts.

A further one in three respondents thought people become less competent with technology as they got older.

Not all employer opinions can therefore be taken at face value – especially as younger employees are often cheaper to hire. A January 2023 article published by the Institute for Employment Studies, for example, found that 26% of UK employers hire younger workers because they are more affordable.

Agreement on balance

Most organisations feel that a balance of younger and more experienced employees is essential.

This view was volunteered to Insurance Times by spokespeople from Allianz, Axa, Zurich, Inshur, Russell Scanlan, Celent, Movo Partnership and the SAS Institute.

Lucy Kemp, future of work expert and employee experience consultant, said: “Younger talent plays a huge role in driving innovation, but it’s not the only key. The real magic happens when you combine their fresh thinking with the experience and context of more seasoned employees.

“Innovation thrives in environments where different perspectives collide. Younger employees might spark the idea, but more experienced ones can often help refine and execute it.”

And, as Movo Partnership chief executive Lea Cheesbrough pointed out, encouraging new and established hires to share best practice is particularly important in the wake of declining apprenticeship opportunities.

She said: “We are learning that a number of apprenticeship providers are no longer offering the apprenticeship programmes – and this is at a time when Biba and the ABI have led initiatives aimed at placing apprenticeships across the insurance space.

“Brokers and insurers can’t always run and manage a cohort of apprenticeships without guidance, so it’s more imperative than ever that the balance is right.”

Recruitment challenge

Ensuring that the insurance industry can continue to attract sufficient young talent is indisputably a crucial part of the innovation jigsaw – and there is a real challenge to be faced here in debunking the myth that insurance is boring.

According to Insurance Times’ Talent Development Report 2024, launched last September in conjunction with RSA, 80% of brokers cited the industry’s reputation and attractiveness as the main barrier to attracting talent – nearly double the next biggest barrier of salary scales (42%).

Every effort should therefore be made to create modern, flexible workplaces that show the industry in a favourable light. Even minor tweaks could make all the difference.

For example, Jamie Macgregor, global head at Celent, pointed out that some UK insurers still don’t have an official WhatsApp platform for communication – these are used more readily in Asia and Latin America.

At the same time, it is important to make sure that young employees fit into what the insurance industry needs and not the other way around. While artificial intelligence and insurtechs are the buzzwords on everyone’s lips, insurance is still fundamentally a relationship-based business.