Insurers are racing to modernize their operations, yet the greatest constraint isn't the technology itself. It's whether teams are prepared to use it. According to KPMG, 62% of insurance CEOs believe talent gaps could hinder growth over the next three years. Automation, data tools, and AI only move the needle when employees understand how to work with them, make informed decisions, and adapt to new ways of delivering value.
That's why workforce development has become central to every corporate transformation effort. Carriers can't rely on hiring alone. To grow sustainably, insurers must inspire and engage existing employees to grow into the roles today's advanced technologies require. How to do this? Focus on strengthening digital confidence, designing clearer pathways for career advancement, and creating a culture of learning.
Building digital confidence
Modernizing the underwriting, claims, and operations functions begins with preparing employees for the new responsibilities and capabilities that come with AI, analytics, and automation. These technologies are reshaping how insurers operate, but they only deliver value when employees feel equipped to use them effectively.
In underwriting, for example, AI can complete a first pass on risk assessments, while analytics highlight patterns across portfolios, but underwriters still need the knowledge to interpret those insights and determine how they influence pricing and policy structure. Claims teams face similar changes. Image-recognition tools, natural-language systems, and fraud-detection models can streamline intake and flag anomalies, yet adjusters must develop the ability to read alerts, investigate exceptions, and focus on cases that call for negotiation or empathy.
Operations teams are moving from executing individual tasks to overseeing automated pipelines. Renewals, notifications, compliance checks, and payment routing now run in the background, which means employees need both the skills and assurance to monitor workflows, troubleshoot issues, and work with data or IT teams to refine rules. This shift from doing to overseeing requires a new kind of capability. One built on understanding systems, not just completing tasks.
All of this makes workforce development essential. Employees need learning opportunities that include guided practice, coaching, and real-world examples to boost their confidence and ability to use these tools to best help the business overall.
Designing clearer paths for career advancement
The confidence employees develop with AI and digital skill-building only translates into business value when it connects to career growth. Insurers need structured career and education pathways that prepare their talent for critical roles.
A strong approach is to create role-specific learning tracks to make it clear to employees what they need to know. Programs that focus on AI, business acumen, and strategic thinking help employees build the exact competencies needed for senior underwriting roles, claims management positions, or operations leadership. For example: an underwriting analyst who completes a structured program in AI-driven risk assessment and predictive modeling positions themselves for advancement into roles that shape pricing strategy and portfolio management.
These programs work best when they combine university rigor with practical application. Employees learn foundational concepts, then immediately apply them to real business challenges in their departments. Cohort-based learning supports better learning outcomes too, creating room for peer collaboration and support. More employees will enroll in the development, and more will finish, when they are part of a group doing it together. When designed well, these learning experiences can deliver capability building at a pace fast enough to address urgent needs, while thorough enough to prepare people for genuine responsibility.
Creating a learning ecosystem
Structured education programs can be important for addressing AI-related talent gaps, but they work best when supported by a broader learning ecosystem. Hiring employees is expensive, and insurers often get more value from developing the people they already have across all levels of the organization. The first step is acknowledging that learning isn't a perk. It's a foundational business strategy that helps teams adapt to modern tools and workflows.
Position learning as part of a larger culture of growth. Mentorship programs, internal mobility pathways, and clear recognition for the development of new skills or earned credentials show employees that the organization values them and their long-term development. When people see that their effort leads to new opportunities, learning becomes something they pursue willingly rather than something assigned to them.
Making modernization work
The pace of digital adoption inside many carriers today reminds us that insurance isn't as slow to evolve as some might think. As companies integrate AI, automation, and new data tools, success depends on whether employees feel prepared to use those tools in meaningful ways. Technology can accelerate decisions and streamline workflows, but people translate those advances into better service, stronger risk assessment, and more efficient operations.
Investing in workforce development is the key to these modernization efforts. Existing teams already understand the business, the market pressures, and the needs of policyholders. When they have access to learning programs that help them grow into new responsibilities, insurers strengthen talent retention and avoid costly rehiring. A workforce equipped to adapt moves ahead with the industry, while building a stronger foundation for the future.
