Fostering the Next Generation of Insurance with a Culture of Innovation and Technology 

Michael Combs, President & CEO, CorVel 

As insurance professionals, we're constantly focused on the future—emerging technologies, AI integration, and process optimization. We invest in innovation to optimize the results achieved. But in all our planning, are we neglecting the most critical variable in our industry's evolution?  

Technology alone doesn’t drive transformation—people do. The future of the workers' compensation and risk management insurance industry hinges on how well we prepare tomorrow's workforce. 

And we can’t consider the future without considering the individuals who will soon make up the workforce. That means considering recruitment and retention strategies for Gen Z (and Gen Alpha, and yes, even Gen Beta) and mapping out the next 5–10 years to build a pipeline of skilled workers from the next generations. 

However, before we can act on the next wave of talent, we must face a few hard truths about the industry. First, our current workforce is aging out, and there will be a massive talent and skills gap to fill if we don’t proactively address our talent pipeline. Second, the insurance industry has a perception problem among younger generations. 

These realities beg the questions: How can we, as an industry, get ahead of the brewing talent and labor shortages, entice new members of Gen Z to join their peers in the industry, and keep them in the workforce for the duration of their careers? Then, how can we begin to prepare to welcome the digitally native Gen Alphas who will be entering the workforce in just five years? 

As we consider these questions, there are a few data points and defining characteristics of the next-gen employees that work in our favor. For instance, data suggests that Gen Z is more likely than other generations to change jobs or careers. They are also widely recognized for their desire for purpose-driven careers, and nearly half of Gen Z youth are specifically interested in computing and technology careers. Like their predecessors, Gen Alpha is also predicted to put a strong emphasis on purpose-driven work, seeking roles that align with their values. And, in line with their descriptor as the digital-native generation, 40% of Alphas anticipate that AI, virtual reality, and smart assistants will be integral to their future careers. 

For the insurance industry to attract and retain the future wave of talent, companies must foster a culture where people can learn, grow, advance, and build a long-term career in the industry. Equally important is the continued prioritization of innovation and the advancement of technology throughout the industry. 

Spotlighting Impact 

To attract and retain these new recruits, we must connect with their desire to make a meaningful impact through their work. According to Deloitte's 2025 Gen Z and Millennial Survey, approximately 89% of Gen Z respondents consider having a sense of purpose at work crucial to their job satisfaction and overall well-being. A recent survey from LinkedIn also found that nearly 90% of Gen Z professionals would leave their current job for another if that company’s values were closely aligned with their own. 

To entice the next wave of talent to join the insurance industry, we should promote and communicate the meaningful contributions and transformative impact a career in insurance can have. By aligning industry-wide messaging with these values, we can more effectively attract new talent and set the tone and foundation for generations to come. 

Passing the Torch—and the Training Materials 

There’s no better way for the next generation of insurance workers to learn than to do so directly from those who have been in the industry for years. To pave the way for the next generation of difference-makers, individuals approaching retirement should develop training and succession plans for those who will inevitably follow in their footsteps, setting the new generations up well and creating a seamless transition plan to ensure future success for the company. 

Mentorship and knowledge-sharing between generations not only preserves institutional expertise but also helps younger employees visualize their own long-term trajectory within the industry. 

Using Innovation as a Beacon for Talent 

The insurance industry is rapidly progressing in its digital transformation with the implementation of generative AI tools and solutions, but this pace of change could be further accelerated with the help of digital natives and early tech adopters in the workforce. 

By embracing advanced technologies, we can continue shaping the industry's future while ensuring that human oversight remains a fundamental component of the process. The high-tech, high-touch message resonates strongly with Gen Z, who want careers at the intersection of technology and purpose. 

Investing in the Future to Close the Talent Gap 

Organizations must also intentionally work to develop the talent pipeline while maintaining investments in technology and the current workforce. Striking the balance is key to maintaining the industry’s health today and critical for preparing it for tomorrow. 

We have a substantial opportunity and responsibility to give the upcoming generations the opportunity to create their own lasting impact and leave their mark on the future of care, effective claims management, and patient outcomes. 

We can achieve this by fostering an inclusive, growth-minded culture where people can build meaningful and lasting careers; that starts with attracting new talent and inspiring them to stay. 

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