Risk management and insurance (RMI) are currently confronted with the single greatest threat to talent disruption: the upcoming retirement wave. According to a report from the United States, half of the current insurance workforce will retire by 2035, leaving over 400,000 open positions. Labor Statistics Bureau. The RMI landscape has often adapted well to change, yet the next nine years represent both a challenge and a defining opportunity.
As we kick off 2026, learning and development (L&D) and talent management leaders can bring renewed momentum in facing the growing talent shortage. This is a chance to put money into your employees, build up your pipeline of leaders, and decide how insurance and risk management will develop in the future. Explore how professionals in the Property & Casualty market believe the looming retirement wave could affect critical knowledge and leadership readiness, as well as present opportunities for growth and renewal across the RMI space.
Loss of Leadership Pipelines and Institutional Knowledge
What impact will the retirement wave have on the insurance landscape? According to a survey conducted by The Institutes Enterprise Research team, 73% of RMI professionals believe the loss of institutional knowledge will be the most significant impact of the retirement wave. This knowledge gap encompasses mentorship, leadership abilities, strategic decision-making, and technical expertise as well. This loss of experience has the potential to quietly weaken your organization’s leadership pipeline if it is not addressed. However, it can also open the door to developing and defining the next generation of leaders with the right professional development strategy. Insurers need to make certain that key insights and procedures do not disappear with experienced professionals as they leave. Building a structured system for the transfer of knowledge that includes: Detailed playbooks and documentation that capture essential expertise Formal mentorship programs that connect seasoned leaders with emerging talent
planning for future succession that takes into account more than just current positions You can ensure stability while preparing for the future by starting to build your leadership pipeline now. Effect on Positions with Specialization After that, technical positions that are the foundation of insurance operations are at risk as well. Sixty percent of RMI professionals who were surveyed anticipate a lack of underwriting, claims, and other technical skills. Additionally, 43% anticipate these roles will decline in the coming years. Why, then? AI and automation are anticipated to fill technical roles in many organizations. As a result, those who learn how AI and machine learning is transforming insurer operations and can pair that knowledge with AI expertise will be in high demand. Still, the strongest organizations will focus on developing technically skilled talent who are also ready to step into leadership roles. Operational excellence and leadership development over the long term are both aided by this balanced approach. However, there is opportunity within this disruption.
Professional development investments now can result in a workforce that is more self-assured, skilled, and resilient than ever before
Programs for Training and Upskilling Develop For L&D leaders who have been looking for a reason to expand their professional and leadership development programs, now is the time. Because it enables professionals of all levels to increase their expertise and remain resilient, continuous learning is one of the most effective methods for addressing the talent shortage. However, it is only effective when programs are purposeful, well-structured, and in line with business objectives. Consider supporting employees through clear career pathways that equip them with in-demand technical and leadership skills. Education that is RMI-specific and reputable comes in handy at this point. For instance, The Institutes Knowledge Group provides a wide range of online courses and Institutes Designations that are intended to aid in the development of leadership, technical, and foundational skills necessary to keep up with changing RMI trends. Each program is backed by The Institutes’ more than 115 years of experience as a not-for-profit, committed to educating, elevating, and connecting those interested in risk management and insurance to create a more informed, resilient world.
Updated Hiring Practices
58% of respondents to the survey anticipate that entry-level positions will be filled from outside the RMI job market as you strengthen internal talent development. This shift will require organizations to move beyond traditional competency-and-experience-based recruiting models toward skills-based hiring approaches.
Not only will this expand the pool of potential candidates, it will also likely bring fresh perspectives into your organization. Those with transferable soft skills, such as customer service and critical thinking, who have not previously worked in risk management or insurance will be able to expand their knowledge in entry-level positions and contribute innovative ideas to existing business models. The key is creating onboarding and mentorship programs that effectively integrate these new hires.
Keep in mind that the retirement wave has already begun. But with the right strategy, it can unlock a new era of risk management and insurance that builds on the work previous generations have already started. Professionals in their early and mid-career will discover new opportunities for advancement, and businesses can purposefully address the skills gap and invest in future leaders. Want to dive deeper into the data behind these trends? Read our benchmarking whitepaper for insights that can help you plan your strategy.
