From Bermuda Reinsurance Magazine, December 1:
Few will disagree that the transformation seen over the past decade, accelerated by the rapid uptick and (seemingly all-consuming) integration of artificial intelligence (AI) in everyday life, has changed so much of life as we knew it. This has become increasingly evident since the release of ChatGPT on November 30, 2022. The potential consequences are incomprehensible – and frankly overwhelming.
With information more accessible than ever, the automation of tasks is becoming more sophisticated in shorter and shorter time frames, and the debated topic of whether an unconscious (we hope!) machine can outsmart human intelligence persists. Yet one urgent question lingers: What effect will AI have on talent moving forward?
Losing the learning curveData collected from Bermuda:Re+ILS’s 2025 Rising Stars survey revealed that 55% of respondents believe that expertise in digital tools and data analytics will be of utmost importance for the next generation of re/insurance professionals, outweighing skillsets in specific lines of business or available vehicles for risk protection or transfer. One professional even outlined the greatest challenge for the next generation of re/insurance leaders as: “Leading in an AI-driven world, learning the pitfalls and possibilities that AI provides us and taking advantage of them”.
The repercussions of AI’s adoption have already reshaped the labour market and will continue to do so moving forward, and the re/insurance sector is no exception.
Could automation erase the foundations?
In July 2023, the OECD released a report, titled ‘Artificial Intelligence and the Labour Market’, which succinctly stated the issue at hand in its key findings:
“AI’s improving ability to complete these non-routine tasks raises new worries of job displacement for occupations previously thought impervious to automation. Occupations in finance, medicine and legal activities, which often require many years of education, and whose core functions rely on accumulated experience to reach decisions, may suddenly find themselves at risk of automation from AI.”
Delving into the concerns AI poses to human talent, the report notes that: “The potential for substitution remains significant, raising fears of decreasing wages and job losses. Taking the effect of AI into account, occupations at highest risk of automation account for about 27% of employment.” Given that AI’s adoption in the workplace is usually hailed for its ability to automate time-consuming tasks – tasks that are often performed by more junior members of staff at the beginning of their careers – this risk could threaten the talent pipeline.
If entry-level jobs are reduced due to the implementation of AI systems, not only does this narrow opportunities for those coming into the market, but it will, in time, limit the available leaders for the next generation. Considering that today’s talent market is already dubbed as problematic, and with Bermuda’s unique microecosystem – a small but globally integrated market competing for a limited pool of expertise – creating even tighter circles for talent availability, the prospect of the future looks bleak for upcomers yet to reach the job market.
However, the impact of AI on entry-level opportunity is not uniform. In larger markets such as London or New York, automation might compress certain administrative roles; in emerging markets, it could open entirely new paths as insurers leapfrog legacy systems. For Gen Z entrants, the promise of working with advanced tools might be as compelling as the risk of job displacement.
Soft skills, hard currency....
....MUCH MORE
