There may still be plenty of slack in the U.S. workforce. However, if the economy continues at a growth rate of nearly 4% – with more than 200,000 new jobs added each month – it is reasonable to assume we may see signs of a tighter labor market, especially as the year progresses.
Property and casualty insurers have been discussing potential shortages in the claims workforce for years. Many claims processing professionals are over 45, and these individuals possess levels of knowledge and expertise that have yet to be passed on to the more junior ranks. Rather than taking a systematic approach to the problem of a generational change in the claims workforce, however, many insurers plug gaps as they occur, shifting resources around and hoping for the best. That approach may have worked in a slow-growth environment, but it will not be sufficient as the economy changes gears.
As 2015 gets under way, insurers should be thinking about a comprehensive plan, not only to address current and future gaps in the claims workforce, but to transform the role of claims professionals within the organization. We see such a plan as being based on five key elements:
1. Finding the right people. In the past, finding a good claims professional was a hit-or-miss endeavor. Now, we have access to data that can pinpoint the attributes of a successful claims examiner. A key first step is choosing the metrics and characteristics that really matter. The next step is turning data based on those metrics into analytics that guide not only recruiting and hiring decisions but the formative processes of orientation and training. Armed with these tools, insurers should cast a broader net, not just raiding their competitors, but working with colleges to develop the kinds of programs that alert young people to the opportunities within the industry while providing the needed skills.
2. Facilitating the transfer of knowledge. Nearly every insurer faces the problem of valuable knowledge leaving the company as boomers (and soon Gen X workers) retire. That is why it is essential to document and identify critical knowledge held by existing employees. Some organizations have taken the process a step further, enlisting departing and soon-to-be departing workers as mentors and counselors to younger workers, rather than seeing them retire altogether and take their wisdom and insights with them.
3. Giving the right assignments to the right people. Insurers acknowledge the concept that claims professionals should not be drowned in a sea of routine transactions that can be more efficiently handled by automated systems. Yet for many insurers this is still only a concept. This should be the year that claims professionals focus on the cases where their skills and experience can really make a difference in terms of value created.
4. Helping them do their jobs efficiently and effectively. Insurers have access to a wide range of tools from mobile devices that facilitate field investigations to collaborative technologies which foster the sharing of information and expertise. These tools can help professionals be more productive, while leading to better outcomes for claims investigations. Insurers that have not done so already should take another look at the technology available and what might work in their specific situations.
5. Motivating and rewarding them properly. Claims professionals are at the heart of the property and casualty insurance function. They make decisions that have a tremendous effect on the insurer's bottom line and are hugely influential when it comes to retaining customers. Accenture's research indicates that the mere act of filing a claim makes customers twice as likely to leave their insurer, no matter what the outcome, and if the claim is not handled to the customer's satisfaction, the customer is almost certain to switch providers. Given claims professionals' influence upon both profitability and customer satisfaction, it makes sense to re-think the way that claims professionals are compensated and “incentivized.” In particular, insurers may want to encourage their claims people to think more about their role in customer service and to focus more on rewarding professionals who go the extra mile, both in terms of fast, accurate resolutions and in terms of outstanding, personalized service.
Workforce participants have been through a lot in the last six years, from the near-catastrophic loss of jobs in 2008 and 2009, to the painfully slow recovery experienced more recently. Now with the economy picking up steam, workers have more choices and bargaining power. It's up to the more farsighted property and casualty insurance companies to take steps to make a career in claims an attractive option, either for those just entering the workforce or for those thinking about making a change in 2015.
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