Understanding the value of diversity
Weaving diversity and inclusion into the fabric of claims provides a richer context for making payment decisions.
The sari is the quintessential women’s garment of South Asia. It can be traced back to 2800-1800 B.C., during the Indus Valley Civilization. It is of the simplest design ranging in size from six yards of fabric and about four feet in depth, yet its intricate drapery makes it anything but simple. Young South Asian girls often dream about the day they get to don a sari of their own.
I remember being a young girl and watching my mother carefully select a sari for a wedding, party or religious occasion. She would make her selection from a plethora of neatly folded stacks of garments. I would watch her meticulously wrap, pleat and drape this extensive piece of cloth into an array of elegance. Eventually, I learned how to drape this ancient style of dress on my own and have enjoyed weaving it into my own Indian-American cultural experience.
I was recently involved in a coverage investigation on behalf of a carrier that was investigating a large loss fire where a portion of the claim involved a sizable amount of contents, many of which were fabrics from India. The adjuster was surprised to learn that the insured had so many fabrics, including saris, and questioned the legitimacy of some of the items. Many of the insured’s saris were priced so expensively and were so delicate that they could not be dry-cleaned and were reported to have been worn on only one or two occasions. Additionally, there was little to no documentation to support the purchase of these fabrics.
Having grown up in an Indian-American household, I could empathize with the insured and understand the frustration she may have felt when she was questioned regarding her ownership of these items. Many fabrics and saris are purchased from overseas and rarely does one keep documentation of a sari purchase (if documentation was provided at all). Further, saris are typically a part of a collection that has been accumulated over several years, and the pieces are made of rare silks, hand-dyed cotton or intricate looming. Because of their unique nature and the occasions to which they are worn, they are (most often) only worn a few times during their ownership.
In providing this background, I want to believe that my perspective helped to shape the adjuster’s view in legitimatizing some of the claims, where it may have otherwise seemed peculiar and/or questionable.
I share this story to illustrate the fact that having a diverse workforce/claims team directly correlates with how claims are viewed, adjusted, investigated and resolved. Have you reflected on what diversity means to you personally and as an organization? It is no secret that diverse teams are good for business. According to the Harvard Business Review in 2016, diverse teams are just smarter, plain and simple:
“Diverse teams are more likely to constantly reexamine facts and remain objective. They may also encourage greater scrutiny of each member’s actions, keeping their joint cognitive resources sharp and vigilant. By breaking up workplace homogeneity, you can allow your employees to become more aware of their own potential biases — entrenched ways of thinking that can otherwise blind them to key information and even lead them to make errors in decision-making processes.”
Diversifying an industry
Unfortunately, the insurance industry continues to struggle with diversity. In 2016, Carrier Management News found that about 85% of executive leadership at publicly owned insurance companies is male. At stock and mutual companies, company leaders are also white (98%), and 93% of executive management are Caucasian. That’s not to say that the industry has not made efforts. In recent years, many carriers have implemented diversity and inclusion programs, creating women’s networks and employee resource groups. The conversation should not end there. It is imperative that companies create a culture of inclusion from the top-down. When leadership demands diversity and inclusion, the effects will trickle down the pipeline.
Diversity is not only important from an ethnicity perspective but can play a large role in understanding the cultures of cities and towns where insureds reside. As more and more claims representatives are working from homes in various parts of the country, we are often dealing with claims and insureds from all corners of the world.
Recently, I was investigating a claim involving an aspiring musical artist from a large metropolitan city. The artist had paid cash for several high-end designer items that he alleged were damaged. He had financial proof to document that he was capable of making the purchases but lacked proof of ownership of the items since they were made in cash.
To me, his testimony appeared credible, but to the claims representative (who lived a thousand miles away in a rural small town), it did not. What did matter in the evaluation of this claim was that a jury of this insured’s peers (in a large metropolitan city) would also find this artist to be credible, as it is not atypical to meet an aspiring artist who wears high-end designer items and clothes and purchases these goods in cash. While it took some explaining, my dialogue with the carrier in evaluating this claim was instrumental in leading to its efficient resolution.
Insurance industry leaders and those in management need to work on processes in the workplace culture to include diverse practices and perspectives. Similarly, employees should demand it. In order to retain a diverse talent pool, companies must engage in a multi-level approach to diversity and inclusion education, training and sponsorship.
Required training on unconscious biases would be a good start, as women and minorities are especially impacted by unconscious bias. It is equally important to sponsor mentor/mentee relationships to foster inclusivity with marginalized groups. Additionally, management should consider requiring that their external partners, including their litigation partners, align with their diversity and inclusion efforts.
“Diversity and inclusion” is more than just a buzz phrase. It requires a sustained commitment from leadership at every level of an organization. Creating a more inclusive workplace culture will transcend into the development of a more inclusive claims-adjusting mindset, the more efficient resolution of claims and better business outcomes.
Jennie Philip (jjphilip@mdwcg.com) is a shareholder in the Philadelphia office of Marshall Dennehey Warner Coleman & Goggin where she focuses her practice on insurance coverage litigation. Opinions expressed are the author’s own.
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