Insurance Modernization at Risk as Workforce Strategies Fall Behind, Says Info-Tech Research Group
Insurers are under pressure to modernize core systems while competing for scarce cloud, data, AI, and cybersecurity talent. Info-Tech Research Group's new blueprint, Rebuild Your Talent Engine: Attract and Retain IT Talent in Insurance, outlines a practical framework to help insurance IT and HR leaders assess readiness, strengthen their employee value proposition, and retain the critical roles needed to accelerate transformation.
ARLINGTON, Va., May 8, 2026 /PRNewswire/ - Insurance modernization is increasingly being constrained by the people and capabilities required to deliver it, according to Info-Tech Research Group. The global research and advisory firm's newly published blueprint, Rebuild Your Talent Engine: Attract and Retain IT Talent in Insurance, provides a structured approach to help insurers attract, retain, and mobilize the IT talent required to support digital transformation.
The firm's research indicates that many insurers are trying to advance core system modernization while facing shortages in cloud, data, AI, and cybersecurity roles. At the same time, experienced legacy system experts are retiring, creating knowledge gaps that can slow delivery, increase operational risk, and deepen dependence on external partners.
"Insurance modernization cannot succeed if the workforce strategy behind it remains outdated," says Vidhi Trivedi, senior research analyst at Info-Tech Research Group. "Insurers need an employee value proposition that reflects what both digital and legacy talent value today: flexibility, growth, purpose, and belonging. When organizations connect those expectations to the technology roadmap, they are better positioned to retain institutional knowledge, attract new capabilities, and move transformation forward with confidence."
Key Workforce Risks Slowing Insurance Modernization
Info-Tech's blueprint identifies several talent challenges that are limiting insurers' ability to modernize effectively:
- Critical digital skills remain difficult to attract and retain. Cloud engineers, data architects, cybersecurity specialists, and AI-capable technologists are essential to future-state systems, integration, and automation.
- Legacy expertise is leaving faster than it can be replaced. Core system knowledge remains vital to operations, compliance, and transition planning, yet many long-tenured experts are approaching retirement or feel disconnected from future-state roles.
- Rigid work models reduce access to high-demand talent. Digital professionals increasingly expect hybrid options, autonomy, modern delivery practices, and environments that support productivity and wellbeing.
- Growth pathways are not clearly connected to transformation needs. Without structured upskilling, internal mobility, and role progression, insurers risk losing employees to industries perceived as more innovative or career-accelerating.
- Employer branding often undersells insurance's purpose and impact. The industry plays a critical role in protecting people, businesses, and communities, but that purpose is not always translated into a compelling technology career story.
Info-Tech's Three-Phase Framework for Rebuilding the Insurance IT Talent Engine
To help insurers address these challenges, the Rebuild Your Talent Engine: Attract and Retain IT Talent in Insurance blueprint outlines a three-phase methodology:
- Assess Talent Readiness for Modernization Success
Insurance IT and HR leaders identify modernization-critical roles, evaluate workforce pressure, assess EVP fit across key roles, and prioritize the roles that pose the greatest risk to transformation timelines. - Build and Embed a Modern Employee Value Proposition
Organizations define a clear employer-employee value exchange, establish proof points across the four EVP pillars of flexibility, growth, purpose, and belonging, and activate targeted initiatives for priority roles. - Develop and Present the EVP Impact Report
Leaders synthesize workforce insights, visualize progress, and present a measurable view of how EVP activation is improving retention, engagement, internal mobility, and readiness.
The resource also includes supporting tools, such as the EVP Diagnostic Tool, EVP Activation & Implementation Tool, and EVP Impact Report Template, that help insurers move from talent planning to measurable action.
"Too often, insurers view IT talent challenges as a capacity issue, when they are really a transformation risk," explains Trivedi. " "The insurers that move fastest will be those that know where critical capabilities are under strain, protect the expertise that increases operational resilience, and create clear pathways for employees to help shape the future of insurance from within."
By applying Info-Tech's framework outlined in the Rebuild Your Talent Engine: Attract and Retain IT Talent in Insurance blueprint, insurance leaders can better understand where people-related risks are highest, strengthen retention in critical roles, reduce long-term reliance on external partners, and build a more resilient technology organization. The firm's research emphasizes that a modern EVP is not only an HR initiative but a strategic enabler of modernization success.
For exclusive and timely commentary from Info-Tech's experts, including Vidhi Trivedi, and access to the complete Rebuild Your Talent Engine: Attract and Retain IT Talent in Insurance blueprint, please contact [email protected].
About Info-Tech Research Group
Info-Tech Research Group is the "get things done" partner for over 30,000 IT, HR, and marketing leaders worldwide. The fastest growing research and advisory firm, Info-Tech enables leaders to make well-informed decisions and transform their organizations through AI, strategic foresight, step-by-step methodologies, practical tools, industry-leading advisory, and training programs. For nearly 30 years, tens of thousands of private and public organizations have trusted Info-Tech to lead their most important initiatives through periods of change and deliver outcomes that truly matter.
To learn more about Info-Tech's HR research and advisory services, visit McLean & Company, and for data-driven software buying insights and vendor evaluations, visit the firm's SoftwareReviews platform.
Media professionals can register for unrestricted access to research across IT, HR, and software, and hundreds of industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].
For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.
SOURCE Info-Tech Research Group
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