Personalizing the Pathway to Executive Leadership

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Author

Lisa Stevens
Director of Executive Development
LIMRA and LOMA

February 2025

Growth and talent management are two priorities weighing on the minds of life insurance industry leaders, according to the Boston Consulting Group and LIMRA’s 2023 Insurance Barometer Study. And the ability to attract and retain talent is a key opportunity to addressing organizational growth.

The industry continues to face a monumental shift when it comes to talent. By 2036, 50 percent of the current insurance workforce will retire, leaving over 400,000 unfilled positions, and this number is accelerating. Nearly all functional areas within the industry will be challenged to replace talent, with many next-generation leaders showing little interest in insurance careers. In 2021, less than 25 percent of the industry was under age 35, based on U.S. Bureau of Labor Statistics. In 2024, the LIMRA and LOMA Strategic Leadership Experience executive program saw a 10 percent increase in Millennial executives from the prior year, which suggests a shift in the industry’s next-generation talent pool.

Build, Buy or Borrow

When it comes to growing the next generation of industry executives, concerns are real as organizations consider whether to “buy” or “borrow” versus “build”/accelerate the development of existing internal leaders to position them to assume larger transformational roles in the next five to 10 years. Borrowing talent is often leveraged as an approach when short-term talent resources are needed via hiring contractors or other temporary staff. While information is not readily available regarding the percentage of insurance companies buying versus building/accelerating the development of talent, many organizations view such opportunities as a balancing act.

Companies assuming a “buy” approach find value in fresh perspectives and experiences gained from both talent within and external to the industry, or to fill capability gaps in areas such as digital transformation, data and analytics, technology and consumer experience, etc., in which the greater organization can learn from and build future talent. In some cases, lengthy learning curves and culture fit become challenges as a result of buying talent. With the focus on return to office, many companies have been purposeful and laser focused on “growing their own” next-generation executives to retain institutional capabilities and experiences, while investing in longer-term human capital efforts. Yet, the industry continues to face talent challenges.

In some instances, many companies are competing for similar available top talent, whether internal or external to the industry. Individuals who are considered top talent are now being selective and exploring options with organizations that can fulfill their personal aspirations, needs and interests, which includes a renewed desire for accelerated growth opportunities to become next-generation leaders.

To Lead

PwC outlined five transformational trends that are expected to reshape the industry and redefine what it means for executives to lead, as well as support the overall “growth trajectory” of organizations in the next decade. As companies decide on the role they will play in longer-term transformation, it will require new approaches and actionable strategies to help next-generation executives prepare for the industry’s evolution. There are many factors to consider.

The transformational road ahead will no doubt require new capabilities, experiences and leadership behaviors, along with opportunities to refine existing knowledge and skills. The insurance industry continues to face a number of familiar forces of change, including technology-driven disruption, evolving consumer expectations, cost and competitive pressures, regulations, unprecedented opportunities in emerging markets, environmental sustainability, war on talent, distribution changes, and economic uncertainty and the list goes on. The call is clear . . . to manage transformational trends, next-generation executives are being called to shape the future of the industry by adapting business strategies to leverage market opportunities, manage risk and develop talent. Through this call, core leadership behaviors — including becoming an enterprise leader, having a strategic mindset and leading transformation — continue to be top needs, to name a few. Are industry leaders prepared for this shift?

Core Leadership Behaviors

Description	Benefits
Becoming an Enterprise Leader
In-depth understanding of: Business and functional areas Organizational strengths and opportunity areas Outside-in perspective — How the company compares to competitors How the company generates revenue	More agile organization; focus on process improvements across the organization Increased understanding of the big picture — vision, strategy, goals Appreciation and understanding of functional areas and goals Awareness of workforce capabilities and strengths to drive innovation Greater visibility into opportunities for cross-organizational collaboration
Having a Strategic Mindset
Taking a step back from daily routines to gain a wider perspective on business operations Proactively examining future opportunities before unexpected challenges become surprises Viewing disruption as opportunities and solutions versus problems Leveraging diverse views and data when making strategic decisions	Deeper understanding of organizational complexities Ability to simplify complex problems by breaking them into manageable pieces New options to achieve shared goals not previously considered Ability to embrace and manage unknowns before they occur
Leading Transformation
Executing organizational change to shape the future to positively impact: Shared vision Healthy and productive work culture Employee engagement and inclusion Customer engagement and satisfaction Innovation and continuous improvement	Increased market competitiveness Engaged workforce prepared to execute the future: "grow with the business" Culture of employee well-being Stronger ways of working — collaboration, feedback and an entrepreneurial mindset — are valued

Various studies suggest that 50-70 percent of executives have development plans. In conversations with industry executives, most report having a development plan, yet few are fully optimized due to lack of follow-through. Three primary factors driving the lack of follow-through include multiple tactical development actions versus strategic experiences, and lack of plan personalization and ongoing support. With the amount of transformational change on the horizon, next-generation executives are recognizing the need to be more self-driven when it comes to personal development as they prepare for future opportunities.

Executive Success Pathways

With that said, ensuring that next-generation executives are set for success requires a balanced and personal approach to support their unique development experience. In planning a “personalized development pathway,” it’s important for next-generation executives to consider what can be learned through experience (70 percent), in collaboration with others (20 percent) and from formal education and resources (10 percent). It’s a balanced approach to growth.

Based on feedback from insurance executives, opportunities to develop enterprise leadership, listening tours, job immersions and shadowing, and special assignments/projects are critical anchors in learning through experience. Access to external advisors — “leaders who have been there” — having a “personal board of directors,” engaging with mentors, coaches, and sponsors, and leveraging “walk-abouts” are top opportunities for executives looking to learn in collaboration with others. Continuous education is critical for next generation executives to remain current with the changing landscape, trends and other forces of change impacting the industry.

No matter what personalized path is created, mentors continue to be essential. Conversations with industry executives include the following considerations for mentor selection:

Provides feedback focused on growth
Challenges thinking and pushes others outside their comfort zones
Is admired in the industry and embodies similar values as well as those of the company
Displays high emotional intelligence and acts as an excellent listener
Provides a psychologically safe and confidential environment
Effectively develops talent
Advocates at forums from where others are absent
Views relationships as an opportunity to learn from each other

LIMRA and LOMA is committed to advancing the industry by providing the education and resources necessary to support next-generation executives in navigating the ever-changing landscape. With the start of the new year, it’s a great time to create a personalized pathway or refine an existing plan for next-generation executives.