Focusing on the future of insurance claims

Despite challenges and constant changes in the industry, insurance professionals still see claims as a viable career path.

While 2018 had its share of claims challenges, the future for the insurance claims industry is filled with opportunities. (Photo: Shutterstock)

In a year where there were multiple devastating wildfires, an unexpected volcanic eruption, several major hurricanes, cybersecurity incidents worldwide, an increase in auto accidents, and changes affecting workers’ compensation claims, insurers covered them all and more.

Carriers are probably breathing a sigh of relief that 2018 is almost over. However, don’t expect any type of respite. The wildfire season is lasting almost year round. Modelers anticipate weather events will increase in frequency and intensity. More states have approved the use of recreational marijuana, and hackers are creating new ways to access personal data on a daily basis.

All of these issues provide both opportunities and challenges for insurers. Educating insureds about these risks and how to effectively mitigate them will be critical. Homeowners are drawn to waterfront and mountain settings, but this places them and their properties in high-risk areas, and this year we’ve seen the devastating effects of those choices. Carriers will need to re-evaluate their risk tolerance for covering homes in regions prone to flooding, wildfires, volcanoes or tornadoes. Increasing premiums, reducing coverage options or requiring construction changes to mitigate adverse impacts are just some of the options to consider.

However, all is not doom and gloom in the industry. Our 2018 Claims Salary Survey found that almost 80% of insurance claims professionals surveyed would still recommend this profession to other people. In addition, 50% rate the outlook for the industry positively. Granted, 30% rated the outlook as negative, but I’m a ‘glass half full’ kind of person.

As you wrap up 2018, I hope you are able to see how you made a difference in the lives of your policyholders or customers. Without insurance, many would be unable to rebuild following a devastating loss, purchase or repair a car after an accident, get the care they need to recover from a job-related or other type of injury, or reopen their business in the aftermath of a disaster.

Thank you for trusting us as the source for your news on the insurance claims industry. All of us at Claims Magazine and PropertyCasualty360.com wish you a wonderful (claim-free) holiday season and a very prosperous 2019.