Making it work: The 2021 Claims Salary Survey

Over the last 18 months, anyone working in the insurance industry has learned to be very flexible when it comes to everything from sales and underwriting to investigating and paying claims and more.

This year’s Claims Salary Survey included a look at the pandemic’s impact on operations, remote work and salaries. The survey was conducted by ALM Intelligence, a division of Claims’ parent company, ALM Media, LLC.

Twenty-six percent of the respondents were independent adjusters and the remaining 74% were employed by insurance companies. Thirty-seven percent of the respondents were females, up from 31% in 2020, and 60% were males. Three percent preferred not to disclose their gender.

Those who responded included: adjusters (26%), managers (15%), vice president or senior vice presidents (6%), supervisors (9%), director/senior directors (7%), specialists (8%), CEO/presidents (2%), representatives (4%), analysts (1%), examiners (4%), investigators (5%) and others (13%). (See figure 1)

The bulk of the respondents (77%) have worked in the industry for anywhere from 21 to 35 or more years. (See figure 2)

While the number of insurance professionals planning to retire from the industry in the next five years or so has been about 5% for the last several years, our survey found that 28% of the respondents expected to retire in the next one to five years, 21% anticipate retiring in six to 10 years, and 14% hope to retire within 11-15 years. These figures should highlight the necessity of bringing new adjusters into the field

Granted, the ages of our respondents could skew the numbers a bit since 25% of them were under the age of 50, while 33% were aged 50 to 59 and 32% fell into the 60 to 69 range. (See figure 3)

All in a day’s work

Respondents worked anywhere from four hours a week to almost 70. Over the past year, 65% said the number of hours they worked remained basically the same, 25% said they increased somewhat or substantially, and 10% said they decreased somewhat or substantially.

While respondents from both independent firms and carriers face similar challenges as part of their operations, there are also some very distinct differences.

Every company faced difficulties following the onset of the COVID-19 pandemic. Barry Gerstein, senior vice president and head of U.S. insurance claims for Aspen found that “one of the biggest challenges of operating throughout the pandemic was losing the human connections that we all took for granted previously. Whether it was colleagues in the office, industry peers at conferences, or clients in meetings, having that in-person experience was a valuable and important part of work life.”

Like many who had to transition to remote work, the team at Aspen and every other insurer, broker and claims adjusting firm had to learn and become comfortable with using a variety of technology platforms to conduct training, staff meetings and to network with colleagues and customers. Gerstein finds that “while it may never fully replace being in the same place, it has become a much more viable and productive part of working during these past 18 months.”

For independent adjusters, one of the greatest trials that arose out of the pandemic was addressing the general lack of assignments from carriers due to the slowdown of business in the greater society, finds Peter Crosa, CEO of Peter J. Crosa & Co., an independent adjusting firm based in Florida.

“To a small company like mine, the challenge had nothing to do with masking, security and the well-being of personnel. They are mostly remote workers and have been because we work in the field. We were concerned about masking and vaccinations, but those are personal decisions that each individual had to make. Our biggest concern was maintaining payroll. We are a small business after all.”

Fifty-eight percent of the respondents said that their companies instituted new safety protocols as a result of the COVID-19 pandemic. In addition, 40% said their use of remote claims assessments increased during the past year.

One of the other pain points due to the pandemic involved communication in general. Thirty-three percent of professionals found interacting with colleagues was more difficult and 19% said they found contacting insureds was much harder. (See figure 4)

Gerstein shares that Aspen took a proactive approach to handling communication issues. “We set up frequent, regular meetings so that people would feel more connected with their teams and supervisor. And, just as importantly, we had the support of senior management to encourage our people to take time off and step away from their desks for a while, as it was too easy to fall into a routine of working very long hours without a break since we were isolated in our homes for so long.”

In a world where remote work became the new normal for many, those in the claims adjusting field were ahead of the curve as 62% of those who worked from home said the number of hours they worked remotely really didn’t change much. Eleven percent said they saw a slight increase in the number of hours they worked from home and 10% said the hours increased substantially, while 17% saw the number of hours they worked remotely drop somewhat or substantially.

Benefits provided to claims professionals didn’t change significantly either, with companies still providing medical, dental and life insurance; pension plans; short-term and long-term disability; a laptop computer; a cell phone; supplemental life and medical insurance; travel reimbursements; an allowance to offset the cost of home internet and phones; as well as profit sharing or some sort of stock purchase plan. The number of firms providing a company vehicle dropped by about 12%, which isn’t so surprising given the fact that no one traveled anywhere for several months. (See figure 5)

When it comes to actual salaries, individuals working strictly for insurance carriers said their remuneration ranged from a minimum of $12,100 per year to a high of $320,000 (See figure 6). Based on the independent adjusters who responded, their estimated annual fees ranged from a low of $100,000 to a maximum of $575,000. (See figure 7)

Focusing on the future of insurance

The importance of attracting a diverse group of individuals to the insurance claims space should not be underestimated. With retirement looming for many who have a depth and breadth of experience in every facet of the industry, highlighting the benefits of working in insurance to the next generation becomes a priority.

Almost 70% of respondents said they would be very or somewhat likely to recommend the claims profession to other people. In addition, 77% said they would rate the outlook for the claims profession as positive or somewhat positive.

However, there are some definite realities to be considered when entering this field. Aside from long hours and the stresses created by working during hurricane season in some areas, the pandemic has added a layer of stress to the job. “It takes dedication and very good people skills, [and] not many have the ability to do both,” shared one respondent. And multiple individuals agreed that this line of work was not for everyone.

One independent adjuster who has worked in the industry for 20 years shared that it was a good career choice. Another individual said, “Every day is interesting. Working with the public in some of their darkest times is both challenging and rewarding.” And this was the general consensus among many of the respondents.

Employees want to work in an industry where they can make a difference, have a definite career path, are encouraged to use a variety of skills, and can employ technology in new ways. That sounds a lot like the insurance industry.

The reality is that no career choice is perfect. Each has its challenges and frustrations, but also moments that are rewarding and encouraging. Our respondents to this year’s survey provided a realistic look at the industry – highlighting what was good as well as where improvements are needed such as a better work-life balance for some. However, there is that adage, “If you love what you do, you’ll never work a day in your life,” and for many who have chosen a career in claims, that seems to hold true.

Patricia L. Harman (pharman@alm.com) is editor in chief of Claims magazine and the PropertyCasualty360.com group.

Related:

• Insurance must ‘change the narrative’ to overcome talent shortage
• Today’s insurance talent want these 4 employee benefits
• All in a day’s work: 2020 Claims salary survey results