Succession planning in insurance is no longer a nice-to-have. It’s essential. With a growing portion of the workforce nearing retirement, insurers and brokerages must ask themselves: who is ready to step into leadership?
From a recruitment perspective, we see the warning signs early. Many firms lean heavily on internal promotions to fill senior roles. While promoting from within builds loyalty and strengthens culture, it assumes there’s always someone ready to take over. Increasingly, that’s not the case. To future-proof your business, you need to balance internal development with smart external hiring.
The Talent Bottleneck Is Real
Most brokerages operate with lean teams. Top performers are often too valuable in their current roles to move. Without a clear successor, senior staff stay on longer, which delays advancement for others. This creates a bottleneck, limiting progression and straining retention.
At the same time, many younger professionals are no longer following a straight path up the ladder. They want variety. We see candidates move from claims to broking, from underwriting to account management, or even into strategic leadership roles. These lateral moves create professionals who are broader in experience and better prepared to lead.
Career Paths Are No Longer Linear
The industry must shift its thinking. Career growth doesn’t need to be vertical. A candidate with underwriting skills may become an exceptional broker with the right support. Someone in claims could bring invaluable insight to an account management role.
Recruiters have a role to play here. We urge hiring managers to assess potential, not just past titles. Skill sets are transferable. Ambition, curiosity, and adaptability often outweigh years in a role.
Succession Planning Starts with Strategic Hiring
Hiring for succession doesn’t mean replacing like for like. It means identifying individuals with the capability to grow, adapt, and lead over time. That takes vision. It also requires better alignment between long-term business goals and short-term recruitment activity.
Instead of waiting for retirements or resignations to trigger action, forward-thinking firms map out which roles will need successors within the next three to five years. This creates clarity around the kind of talent they should be hiring today.
Recruitment plays a central role in this. Whether you’re bringing in experienced professionals to mentor younger staff, or hiring early-career talent ready to step up, hiring externally should support, not replace your succession plan.
Advice for Candidates: Diversify and Speak Up
If you’re building your insurance career, the message is clear. Seek out variety. Try different roles. Take on secondments. Show interest in leadership early. The more diverse your experience, the more opportunities you’ll unlock.
Forward-thinking employers want people who are flexible, curious, and driven. Those who invest in learning across functions are far more likely to be tapped for leadership.
Final Thought
Succession planning in insurance isn’t just about filling gaps. It’s about building a resilient, future-ready workforce. That starts with long-term thinking and strategic hiring.
Whether you’re a business leader planning for the future, or a professional looking to take your next step, let’s connect. We’re here to help shape the next generation of industry leadership.
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