LatAm’s workforce challenges

The skills gaps in underwriting, claims management and actuarial roles is becoming a pressing issue for the LatAm reinsurance sector, affecting market growth and stability.

Participants in Intelligent Insurer’s latest survey confirmed this worry, with 36 per cent of industry leaders citing talent shortage among their top three major concerns. 

Many factors are in play, such as an ageing workforce with many experienced professionals nearing retirement, and insufficient replacements in the training pipeline.

There’s also a talent drain with skilled professionals being lured by global firms offering more competitive packages.

“The industry has struggled to attract young professionals,” noted one participant.

This gap is worrying as the market lacks specialists in cyber risk, parametric insurance and climate modelling.

“We need better educational outreach and industry-wide initiatives to promote reinsurance careers,” another wrote.

When asked about general business in the area in 2024, the consensus was positive, with more than three-quarters stating ‘confident’ or ‘very confident’.

“It’s a growing region with a lot of natural resources, amazing talent and underserved insurance markets,” one respondent explained.

One broker commented: “Investing in people is as crucial as investing in risk models. Without talent, even the best technology won’t sustain long-term market growth.”

Where is all the talent going?

The reinsurance sector’s rapid growth in LatAm has intensified the demand for specialised skills.

“One of the biggest gaps is in technical pricing and catastrophe modelling,” an industry consultant wrote. “Companies that invest in training will gain a long-term advantage.”

Retention has never been more challenging.

In response, leading reinsurers have launched regional training programmes targeting young professionals, but will these be enough?

“Technology is playing a pivotal role in addressing the talent crunch,” one respondent wrote, “with AI and automation streamlining repetitive tasks, allowing teams to focus on strategic priorities.”

Many participants wrote comments about cross-training existing employees as an effective solution, because upskilling current staff reduced reliance on external hires and ensured institutional knowledge is retained.

As one reinsurer wrote: “Overcoming the talent shortage will require a collective effort.

“Reinsurers, brokers and educational institutions will have no choice but to collaborate to help secure the sector’s long-term sustainability.”

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