Bridging the talent gap

There is scope for industry bodies and insurance companies in Singapore to help narrow the gap, reports TEH SHI NINGTHE mismatch between skills and the insurance sector's manpower needs is a global one, but it is felt more keenly here in Singapore, which has fewer people to begin with, and where the industry's expansion has been rapid.mini storageAnd Paul Faulkner, chief executive officer of MSIG Singapore, says that there is scope for industry bodies and insurance companies to help narrow the talent gap, even as Singapore begins to realise its ambitions of being a regional hub for insurance."Even with the M&A that's taken place in recent years, we've still got 37 general insurance companies here. We've got the MAS (Monetary Authority of Singapore) encouraging people to set up, so there are more regional players now too. The Lloyd's syndicates are coming in. We've got reinsurance companies, reinsurance brokers setting up here. So, the pull on talent continues to get bigger, on a small country," he says.However, globally, the insurance industry faces many pressures, some of which loom larger than human capital, for now.In Insurance Banana Skins 2013, the latest edition of a biennial global survey of risks facing the industry produced by the Centre for the Study of Financial Innovation and PwC, the top three risks cited by 662 practitioners polled across 54 countries were the burden of regulation, poor investment performance and the uncertain macroeconomic environment.Human resources slipped from the sixth most pressing risk in 2011 to rank 19th on the latest report, though the quality of management has become a greater challenge, which ranked seventh, up from 15th in the 2011 report.But in the "Far East and Pacific" region - which includes responses from Australia, China, Hong Kong, Indonesia, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand - human resources still ranked as the 10th most pressing concern, while the quality of management ranked a higher fifth.The talent gap is particularly pronounced in Singapore, in Mr Faulkner's view, and shows up in three areas.First, insurance companies seek talent for leadership and management positions, roles which are not always best filled by employees who rise through specialised technical ranks. "You can have very strong technical experts, but they may not want to manage people, they may not be very good at managing people," he says.Meanwhile, it is for roles requiring specialised technical skills - such as underwriting and claims - that Singapore's skilled workers are in shortest supply."There's a recognised gap in the industry from a talent point of view - we have older talent coming up to retirement age, and then there are a lot of younger people beginning to come into the industry, but there is a gap, and it's quite a difficult gap to fill," says Mr Faulkner.Third, there are the processing roles, which involve simpler skills, and there remains a scarcity of willing workers. Younger workers "don't want to sit down and process all day", while older workers find it difficult to switch to newer computer systems each time the industry upgrades.Mr Faulkner sees the global financial crisis of 2008 as indicative of the fact that too many sectors in Singapore are fighting for the same, small talent pool."In those few years, we found that we were able to recruit many people with a banking background into general insurance and most of them stayed. We were also self storageble to recruit fresh graduates for a couple of years, we weren't fighting with the banks," he says.What can be doneMr Faulkner thinks that the insurance industry can do with some sprucing up. "It is a professional business. General insurance is very important, essential, for socio-economic progress. Without general insurance, it would be difficult for industries to operate. It would be nerve-wracking for people to buy a car, or go on holiday."Insurance is crucial to an economy's growth and progress, Mr Faulkner says, gesturing to the view from MSIG's boardroom of the port, the roads being built and buildings under construction.Unfortunately, the spotlight often falls on claims that are not paid, rather than the good.Existing industry initiatives such as the Global Internship Programme - launched by the General Insurance Association of Singapore with support from the MAS in 2008 - have helped to create awareness of insurance as a "socially responsible industry" among young undergraduates.But individual companies have a responsibility to better manage and retain the talent they attract, says Mr Faulkner.Less poaching of talent from competitors and more developing and nurturing of talent internally, could help alleviate the talent shortage situation industry-wide. "We can't keep pinching from each other, because you do get a situation of very expensive musical chairs, which everyone loses from at the end of the day. More needs to be done in terms of giving people opportunities," he says.This is especially so for new entrants into the industry, many of whom will want to see where their careers may take them. "They want to see the different parts of the business, they want to be able to work overseas . . . These are things that can be done by companies," Mr Faulkner says.Yet, there remain facets of this challenge that are out of the control of industry players, such as the attitude of a new generation of graduates entering the workforce. The lack of a full-time insurance degree on offer at the local universities is less of an issue than graduates' willingness to learn. A degree, any degree, is but a starting point, says Mr Faulkner."As long as people come in with the right attitude and are willing to learn, willing to get their hands dirty, there's no reason why they can't excel."After all, he does not hold a degree in insurance either. The biology graduate started his career with an accounting firm and moved to Singapore 23 years ago, before joining an insurance company as a chartered accountant in a regional finance role. He has stayed in the sector for the past 16 years now.Still, there is room for Singapore's insurance companies, industry associations, policymakers and educational institutions to "get together and plan ahead" for future manpower needs. This could include plans for more training to enable talented individuals to switch from other fields of expertise into the insurance sector mid-career.After a few rounds of integration in the past few years, Mr Faulkner thinks that the insurance sector has now stabilised and can focus on long-term growth, for which tackling the talent gap will be a priority."We can continue for the next couple of years and do nothing, but that would be a mistake. We need to be looking further ahead. Over the next five to 10 years, it must be among the top three challenges we have to deal with, if the insurance industry wants to be sustainable," he says.tshining@sph.com.sg迷你倉