Employee diversity can drive profit: Peak Re

Employment diversity is not only a social contract but also improves productivity and profitability, Franz-Josef Hahn, chief executive of Peak Re, told delegates at the East Asian Insurance Congress (EAIC) in Hong Kong this week.

In a presentation titled “Unlocking the power of a diverse workforce to overcome talent shortages”, he said gender diversity is only one aspect of diversity, noting that age, education and culture are also important and that they in turn encourage a broader pool of people to join the insurance industry.

Insurers in Asia-Pacific are facing a watershed in terms of staff numbers, with the prospect of the baby-boomer generation retiring. “Another 1.2 million people will be needed to join the industry over the next nine years,” Hahn said.

“That’s a tall order but it’s the same in Europe, the US and everywhere else. We have to think creatively about how we get people,” he noted.

Insurance companies have been poaching staff from rivals, but Hahn said this is not sustainable. “We have to get better and hire and build within the company—and never mind if people leave,” he said. “It’s important we become learning organisations to absorb fresh talent.”

An image problem

Hahn said a restrictive issue on recruitment was the reputation of the insurance industry, which is not as positive as for other financial sectors. “People in Emerging Asia turn to family and friends if they need money, and not to insurance companies,” he said.

Education was key, he added. “We are there to help with calamity and we should go to schools and universities and point that out.”

Community engagement was important, Hahn said. “We should do much more to speak to communities and talk about our purpose and improve our image.”

“You have to allow people to move across the organisation.”

He suggested improvements to the recruitment process. “We should not just sit there and ask questions and intimidate candidates,” he said. “Full transparency is very important: the transparency to talk about who we are. It should be auditable by your candidates.”

Once they were hired, it was important for employees to have a future, he noted. “Talent development is a must, or people will jump from one job to another,” he said.

Larger companies can offer international rotation, but smaller companies can also make efforts to hold on to their staff. He said Peak Re, with some 150 employees worldwide, provides access to an online learning platform.

“Adopting technology such as artificial intelligence is a positive for all, freeing employees from more process-driven work so they can develop into different areas,” Hahn said.

People should not have to do the same job for five or 10 years, he insisted. “You have to allow people to move across the organisation.”

Although some managers might be resistant to that idea, wanting to maintain their teams, Hahn said employers need to be mobile with people. “Today’s world is working differently. People expect something more interesting than sitting their entire work life in one job,” he said.

At the other end of the talent scale, older workers should also be accommodated. “We can offer consultancies or part-time jobs. More experienced workers are vital for the development of young talent,” he concluded. 

For more news from the East Asian Insurance Congress conference (EAIC) click here.

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