Attracting and retaining new talent is a challenge for the entire insurance industry, but it’s particularly difficult for one sector, a survey from Towers Watson finds.
Thanks to their increasingly technology-heavy job descriptions – coupled with lack of interest from millennials in insurance careers – 76% of claims officers at US property/casualty firms say attracting and retaining top talent is their primary business challenge.
In “P&C Claims Officers Survey,” respondents told Towers Watson researchers that talent was more of an issue than technology’s impact on claim adjudication, including metrics, data, analytics and applications.
Yet the two are deeply interdependent, says Frank Ramsay, practice lead for Towers Watson’s North American Claim Management.
“As analytics and new technologies become more central to effective claim operations, traditional talent needs will broaden to reflect new priorities,” Ramsay said. “Claims supervisors who understand how to leverage analytics and utilize consumer-friendly technologies will generate greater value for their claim departments. The ones who grasp both technology and talent will be best equipped for managing claim adjudication.”
Amid technological concerns, claims officers cited metrics and analytics (72%) and expense management (66%) as their next most pressing business issues. Around 83% said they have plans to address these concerns by employing better metrics and analytics, and 63% said they will refocus efforts on effective supervision.
“Improved use of metrics and analytics can help identify claims that pose the risk of higher loss or allocated loss adjustment expenses,” said Ramsay. “Used properly, they can be connected to loss cost and ALAE, and leveraged as a risk management tool.”
While this is encouraging, further Towers Watson data shows that despite recognizing the opportunity of claims analytics, claims officers ranked it the least significant of five choices when considering future enhancements to claim organizations.
“The discrepancy between knowing the importance and opportunity analytics provides and the willingness to incorporate it into future enhancements must change if insurers are truly committed to more precise claim settlement processes,” Ramsay concluded.
Towers Watson also stressed the importance of greater emphasis on talent attraction and retention, particularly those with technologically advanced skill sets that “will help insurers modernize their operations to deliver more targeted claim settlement, business focus, expense management and, ultimately, profitability.”
