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Latest Insurance Talent Perspectives

Building and Maintaining a Strong Employer Brand

In today’s competitive labor market, a strong employer brand is a key differentiator in recruiting top talent, reducing costs, enhancing the candidate pool, and retaining high performers by instilling pride in their roles and company. 

View our latest white paper for tips to ensure your company represents itself as an employer of choice.

Q3 2024 Insurance Labor Market Study Results

The Jacobson Group and Aon conduct a Semi-Annual Insurance Labor Market Study to examine industry hiring and revenue trends and projections. The findings of our Q3 2024 iteration reflect a relatively stable labor market, with modest job growth.

Download the results to explore 2024’s staffing forecasts and hiring plans for the insurance industry.

Combatting the Finance and Accounting Talent Shortage

Faced with a shallowing pool of emerging talent and a workforce nearing retirement, finding qualified accounting and finance professionals has been an intensifying challenge for the industry. A comprehensive multi-prong approach is necessary to cultivate a workforce that can meet evolving demands and ensure operational continuity.

Read our blog post for insights on staying ahead of the growing finance and accounting talent crisis.

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Effective Leadership Development in an Evolving Climate

In today’s business climate, an organization’s vitality rests upon its leaders’ ability to evolve, rise to meet new stakeholder demands, and navigate shifting challenges and priorities. However, traditional career development plans have placed strong emphasis on an employee’s technical skills, overlooking the interpersonal and leadership skills that are necessary for success. As insurers respond to the exigencies of an evolving industry, which are further compounded by the maturing workforce, taking a fresh approach to leadership development is key. In a recent Insurance Journal article, Julie Dunn, assistant vice president and engagement director at The Jacobson Group, shared best practices for incorporating leadership and interpersonal skills into individuals’ career development plans. Recounting a Gartner study which found 45% of human resource professionals struggle with developing mid-level leaders and nearly as many (37%) with senior leaders, her piece, “Redefining Leadership Development,” explores areas for insurers to consider as they grow and engage their organization’s talent. Below are a few of her insights.Determine what leadership looks like in your organization.How organizations define leadership will vary, based on their corporate culture, values and mission. Consider the traits and skills that best align with your company’s current and future needs, such as empathy, a growth mindset, integrity and the ability to motivate others. Recognize that while some individuals may be more natural leaders, these behaviors can also be learned and fostered in others.Prioritize the human aspect. A recent study found 90% of human resources professionals believe focusing on the human aspect of leadership is essential for success. Beginning at the junior level, incorporate leadership and soft skills training into high potential employees’ professional development plans. Regardless of whether these programs are formally driven by HR or internally within your team, ensure you’re prioritizing leadership skills, not just technical abilities, as individuals advance in their careers. Take an individualized approach by identifying employees’ current strengths and areas for growth to create tailored development plans.Build leadership development strategies.As part of a comprehensive leadership development strategy, consider how you can provide individuals with a well-rounded view of your organization. Exposing high potential employees to experiences across divisions, through activities such as rotational programs or interdepartmental projects, allows them to gain broader insight into how departments interconnect. Coaching and mentorship relationships are also immensely valuable and permit employees the opportunity to connect with and learn from more senior individuals who can further support their growth.Soft and interpersonal skills are often the difference in good and great leaders. Consider leveraging formal training around emotional intelligence and unconscious bias within comprehensive development plans. This will strengthen individuals’ ability to effectively communicate, navigate conflict and manage relationships. Additionally, it is vital that senior management leads by example, exhibiting core leadership traits and encouraging them in others.Strategic leadership development is key to the long-term prosperity of any organization. Read the full article to learn more about redefining leadership and implementing formal leadership development plans to position your company for continued success.

Compass 15.3: Recruiting Redefined: Staying Competitive Amid Realignment

This quarter’s Compass feature article explores best practices for refining the candidate experience and attracting top talent in the evolving employment landscape. The newsletter also includes an overview of the industry's current labor market and recent executive-level job changes.

July 2022: Labor Market Pulse

While insurance unemployment continued to rise in June, the industry has added nearly 30,000 jobs since the start of the year. Within the larger finance and insurance category, job openings remain elevated amid a challenging recruiting climate. Additionally, pay continues to be relatively high for carriers although overall wage growth appears slightly slowed. We’re continuing to see a realignment within the industry as insurers establish more finite parameters around long-term work environments and professionals evaluate their personal and professional needs. We invite carriers to share their expectations for the next 12 months by participating in our Q3 2022 Insurance Labor Market Study. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector increased to 2.8% in June.  The insurance carriers and related activities sector gained 7,200 jobs in June. At roughly 2.8 million jobs, industry employment increased by approximately 45,400 jobs compared to June 2021. The U.S. unemployment rate stayed at 3.6% in June and the overall economy added 372,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, May* insurance industry employment saw job increases in agents/brokers (up 3.8%), title (up 2.4%), and TPAs (up 1.9%). Meanwhile, job decreases were seen in reinsurance (down 2.6%), property and casualty (down 0.3%), and life/health (down 0.2%). Claims jobs saw no change. On a year-to-year basis, May* saw weekly wage increases in claims (up 9.4%), property and casualty (up 4.9%), title (up 4.4%), life/health (up 4.2%), agents/brokers (up 3%), and TPAs (up 2.6%). Meanwhile, wages decreased in reinsurance (down 1.2%).       BLS Reported Adjustments: Adjusted employment numbers for May show the industry saw a decrease of 1,900 jobs, compared to the previously reported decrease of 6,100 jobs. The BLS continues to revise numbers to be most accurate, which may contribute to inconsistencies, depending on when reports were pulled. *The BLS reports on wages and employment for the industry category are only available for two months prior. The source for the data represented in PULSE is the U.S. Bureau of Labor Statistics. Insurance data is derived from the insurance carriers and related activities sector.

Episode 7: Preparing for Board Service: Expert Insights

Serving on a corporate board can be a rewarding and valuable experience in many ways. The Jacobson Group’s co-CEO Greg Jacobson recently sat down with two industry leaders to discuss the qualities of successful directors and how insurance executives can most effectively prepare for a board seat. Donna Zarcone, who currently sits on the boards of Cigna, CDW, The Duchossois Group and Quinnox; and Dave Michelson, who sits on the board of FedNat and is president of DWM Consulting and advisor at a number of technology companies, share their vast experiences and advice for those pursuing board service.

Recruiter Report: Job Hopping

The market has shifted in the past few years and recruiters and hiring managers are evaluating how they approach recruitment in order to remain competitive. Our team regularly talks with insurance leaders from around the industry, granting us a unique perspective on pressing talent topics. In this edition of “Recruiter Report,” we’re discussing the stigma around turnover and its place in the current market, answering the question, Is job hopping a deal breaker? While staying with the same company throughout one’s entire career has become unrealistic, we see many hiring managers consider even a five-year tenure as short-lived. However, as the employment landscape evolves and the effects of COVID-19 continue to impact careers, professional movement is accelerating. It may be time to reevaluate your expectations around job hopping. Determine why a candidate switched roles.It’s not uncommon to see employment gaps or changes on candidates’ resumes given the tumultuous past two and a half years. They may have been laid off early in the pandemic. Others may have stepped back from their careers to focus on caring for children or parents. On the other hand, some individuals may have taken a new role in order to move up professionally or better meet shifting personal needs. If a candidate seems well qualified, don’t discount them solely on resume gaps or perceived job-hopping tendencies. They may be ready to fully embrace the right opportunity or step back into the workforce. Provide space for an individual to explain their journey before determining they are a risky hire.Explore whether their needs can be fulfilled. Although some job hopping and resume gaps are valid, there is also the potential these individuals are not fulfilled by long-term employment and may not be the right fit for your organization. Aim to gain a solid understanding of a candidate’s motivators and what they seek in a position. Ask if they enjoy changing roles and inquire about the value they’ve gained by moving from one company to another. Remain positive and encouraging when addressing their movement, asking questions in a non-judgmental way. For instance, are they wanting to be challenged more? Do they enjoy taking on new projects or working with new teams? Based on this conversation, you can gain more clarity around whether your organization has the right tools to keep them engaged long-term – such as rotational programs, project-based opportunities or well-defined upward mobility. Uncover and communicate the value of their perspective. While excessive turnover may be a red flag, consider the benefit of an individual who has a well-rounded professional background. In many cases, they can bring new ideas to your organization and share what has and hasn’t worked for similar companies. Additionally, if they were successful in a variety of roles, it’s likely they are agile and adaptable. Once you have an understanding of their past experience and reasons for changing jobs, you may determine an individual is actually a strong candidate for your open role. Keep in mind that others in the hiring process won’t make this conclusion based on the individual’s resume alone. If you’re a recruiter, work with the hiring manager to help them understand an individual’s viability, helping connect the dots in their resume. If you are the hiring manager for a role, be open-minded and proactively ask recruiters to share why they’ve recommended a candidate if it’s not initially apparent. Take the time to look beyond a resume and understand where there is risk and where there is opportunity. Leave the door open for boomerang employees.In addition to being more open-minded about turnover, consider past employees of your company who might be a fit for an open position. Unless they left on bad terms, there can be many benefits to these boomerang employees. First, there are fewer unknowns around their work style, culture fit and capabilities. Second, there is typically a much shorter onboarding and training process for returning employees, saving time and money. Additionally, during their time away from the organization, they’ve undoubtedly gained new insight and experience. Keep lines of communication open with high performing past employees, especially as some individuals begin to experience “the Great Regret.” Periodically connect to ask whether they are happy in their new role and if they’d ever consider coming back. Let these individuals know the door is always open, while avoiding making them feel uncomfortable or embarrassed about their decision to leave. Some turnover is inevitable and overall, today’s workforce is more comfortable making moves in order to advance professionally or find their desired level of flexibility. The pandemic has further redefined the norms around how the industry views resume gaps and turnover. Rather than discount an individual based on movement, take the time to better understand the larger picture and avoid missing out on the right hire.

Optimizing Your Contingent Labor Program in Today’s Economy

As the candidate’s market continues, insurers are adapting their talent plans to best meet the needs of their employees and customers. A low unemployment rate and high number of open insurance roles have given candidates the upper hand in terms of recruitment, with job seekers often receiving strong offers from multiple companies. As organizations recalibrate their total rewards packages to accommodate shifting employee expectations around flexibility, work environments and compensation, contingent labor programs are also being impacted. Here are a few areas to consider as you optimize your contingent labor plans for the current environment. Increasing DemandIn our Q1 2022 Insurance Labor Market Study, conducted in partnership with Aon plc, nearly 20% of insurers shared they plan to increase their use of temporary employees in 2022. This is a record high for the study, and 6 percentage points higher than recorded in our pre-pandemic January 2020 study. The current demand is a result of multiple factors, including the resurgence of modernization efforts and other projects that were put on hold during the height of the pandemic, continued economic uncertainty, and attrition during “the Great Resignation.” Additionally, the vast majority of insurers plan to grow their full-time headcounts this year, primarily due to increases in business volume and areas that are currently understaffed, according to our Q1 2022 Insurance Labor Market Study. However, recruiting difficulty is at its highest in the study’s 13-year history, further fueling the already existing need for temporary workers. The U.S. Bureau of Labor Statistics’ May report found temporary job numbers increased by nearly 13% year-over-year, with the addition of 390,000 new positions. To meet impending needs, it’s important for organizations to plan early regarding needs and staffing partners, while moving quickly throughout the hiring process and fostering a positive candidate experience.Shifting ExpectationsInflation and changing employee expectations are also impacting insurers’ contingent workforces. Across the industry, we’re seeing inflated rate requests and individuals receiving multiple offers for projects. Even for temporary positions, professionals are seeking out opportunities that meet their personal needs and preferred work styles, while also providing competitive pay.Make your assignments most desirable by offering enhanced flexibility when possible. Additionally, be clear and transparent regarding a project’s duration – often, individuals are looking for several months of work, and providing a definite schedule will help them feel more secure in accepting a position. Expanding Talent PoolsUnemployment within the insurance industry remains low, at 2.3%, prompting many insurers to expand their talent pools. Depending on the need, this may include looking for individuals with experience in other departments or even outside the larger insurance industry. Skills such as customer service, attention to detail, project management and many more are easily transferable, opening organizations up to additional qualified individuals. At the same time, offering work from home opportunities, when possible, can remove geographic boundaries and provide an even wider array of potential talent. Enhanced Onboarding ProcessesOnboarding has become even more vital to an individual’s satisfaction with a role and a project’s overall success. Reevaluate your onboarding processes to ensure they are efficient and streamlined, while providing the necessary information and resources. Plan for IT needs and equipment ahead of time and ensure individuals are able to quickly get up and running with minimal technical difficulties – especially those who are working in a remote capacity. A strong understanding of individuals’ strengths and capabilities prior to a project enables you to tailor onboarding and training to supplement their existing knowledge base. This may include training around specific systems, tools and databases or more project- or organization-specific knowledge. In many cases, technical skills are more easily taught than innate skills and attributes. Keep this in mind and be strategic on the front end of an assignment to ensure individuals are working up to their full potential. As the insurance labor market evolves, temporary employees are vital for maintaining service levels and implementing larger scale projects. For more insight, view our posts on building a best-in-class contingent labor program and measuring your program’s effectiveness.

Jacobson Employee Spotlight – Q2 2022

We’re proud of our employees at The Jacobson Group and know they are what fuels our success. This quarter we shine our Employee Spotlight on three dedicated individuals. Get to know them below. View previous editions of our Employee Spotlight here. For monthly Employee Spotlights, follow our Facebook page. TONY CAÑAS Client Advisor, Insurtech, 4 years at Jacobson Hometown: San Jose, Costa Rica Alma Mater: Iowa State University – twice, for undergrad and my MBA Describe Your Role: As a client advisor, I help insurtechs with their talent needs at all levels. This includes both temporary and permanent direct hires. Favorite Movie: I’m a big nerd and love The Lord of the Rings movies. Jacobson in Three Words: Friendly, Best-in-Class, Caring When You Grew Up, You Hoped to Become: A computer scientist. However, it turns out if you can’t do math, programming is not for you. Random Fact About Yourself: I’m a black belt in Kyokushin Kaikan full-contact karate, which I practiced my whole childhood. Best Place You Have Ever Visited: Probably Portugal; every city we visited was gorgeous. One Thing You Are Grateful For: How much I’ve been able to travel (almost 80 countries) thanks to my girlfriend’s need for adventure and the fact that we both work in this wonderful industry. LAUREN SWOBODA Recruiter, 1 year 11 months at Jacobson Hometown: Kansas City, Missouri Alma Mater: University of Missouri Describe Your Role: I’m a recruiter on our temporary staffing team. I’m responsible for screening and outreaching to candidates, submitting candidates to clients, and coordinating and managing interviews and debriefs. Favorite Movie: It’s a tie between What about Bob? and Pretty Woman.  Favorite Thing About Working at Jacobson: I’ve always worked 100% remote with Jacobson and I’m a huge fan of the virtual events that our activities committee hosts. It gives me the opportunity to get to better know my teammates and have some fun outside of standard Zoom meetings. First Concert: Tom Petty Best Place You Have Ever Visited: The Greek Islands - specifically Santorini Random Fact About Yourself: Growing up, I was an All-American Soap Box Derby champion. Jacobson in Three Words: Fast-paced, Collaborative, Adaptable LAKRESHIA KINDRED Engagement Director, 11 months at Jacobson Hometown: Chicago, Illinois Alma Mater: University of Illinois Urbana-Champaign  Describe Your Role: As an engagement director, I am responsible for overseeing the strategy and implementation of executive-level searches. I work with my team to assess and present the highest qualified candidates in the marketplace. Jacobson in Three Words: Progressive, Rewarding, Connected Favorite Movie: Love Jones One Thing You Are Grateful For: Life and family When You Grew Up, You Hoped to Become: A physician Personal Mantra: My mission in life is not merely to survive, but to thrive; and to do so with some passion, some compassion, some humor, and some style. - Maya Angelou  Want to join our team? View our corporate careers page here.

June 2022: Labor Market Pulse

Industry unemployment remains low, and while May saw a decrease in employment compared to April, insurance has gained more than 17,000 new jobs since the start of 2022. Movement persists with both quits and job openings remaining high. As comfort levels increase, in-person conferences and networking events are picking up pace across all industry sectors, enabling professionals to convene on a large scale. Insurers are also more firmly developing their plans and expectations for moving forward. We’re seeing organizations determine their longer-term work environments – whether it’s virtual, in person or hybrid. While acknowledging individual employees’ preferences and needs continues to be important, many organizations are more clearly defining these parameters. As a result, the industry’s reshuffling will likely become more of a realignment, with professionals seeking out the organizations that best meet their desired work styles. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector increased to 2.3% in May.  The insurance carriers and related activities sector lost 6,100 jobs in May. At roughly 2.8 million jobs, industry employment increased by approximately 31,800 jobs compared to May 2021. The U.S. unemployment rate stayed at 3.6% in May and the overall economy added 390,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, April* insurance industry employment saw job increases in title (up 3.8%), agents/brokers (up 3.8%), claims (up 2%) and TPAs (up 1.6%). Meanwhile, job decreases were seen in reinsurance (down 2.9%), property and casualty (down 1.2%), and life/health (down 0.5%). On a year-to-year basis, April* saw weekly wage increases in claims (up 6.3%), property and casualty (up 4.5%), TPAs (up 4.3%), agents/brokers (up 4.1%), life/health (up 3.5%), and title (up 3.4%). Meanwhile, wages decreased in reinsurance (down 1.2%).       BLS Reported Adjustments: Adjusted employment numbers for April show the industry saw an increase of 21,000 jobs, compared to the previously reported increase of 19,700 jobs. The BLS continues to revise numbers to be most accurate, which may contribute to inconsistencies, depending on when reports were pulled. *The BLS reports on wages and employment for the industry category are only available for two months prior. The source for the data represented in PULSE is the U.S. Bureau of Labor Statistics. Insurance data is derived from the insurance carriers and related activities sector.

Remaining Professional in a Candidate’s Market

Insurance unemployment remains low, job openings are at an all-time high, and organizations have record-breaking hiring goals. Even if you’re not actively job searching, it’s likely recruiters are reaching out to share potential opportunities with increasing frequency. While we’re currently in a candidate’s market, how you handle these interactions – regardless of your intent to make a move – is a direct reflection of your personal brand. Here are a few ways to ensure you’re representing yourself in a positive light and further establishing your professional presence within the industry. Respond to outreach. Even in today’s market, with its increased turnover and abundant opportunities, building relationships and remaining professional is essential. When you’re approached with a position that doesn’t interest you or isn’t in line with your larger career plans, let the recruiter or hiring manager know upfront, rather than ignore their outreach. Consider it an opportunity to build connections within the industry and share the kind of future opportunities that may be better aligned with your long-term goals. You may also know individuals within your network who would be an ideal fit to recommend for the role. Put thought into your interviews. Be respectful of all involved parties’ time, schedules and efforts. While virtual meetings have become the norm for initial interviews, treat them with the same formality you would an in person meeting. This includes logging in early to troubleshoot potential technical difficulties, dressing professionally and being prepared with insightful questions. Silence email notifications or other distractions and avoid looking at your phone, remaining engaged throughout the conversation. Following the interview, send those you spoke with a follow up thank you email or LinkedIn message. Remain gracious, regardless of an interview’s outcome. If you are not offered a role, politely inquire about what you could have done differently and ask to keep in touch for future opportunities. Remain realistic. It’s no secret salaries are rising across all industries. If you’re not actively searching, it may be tempting to provide recruiters with an unrealistic salary range just to “see what happens.” However, keep in mind these salary expectations will likely stay attached to you when other opportunities arise within that company or recruiting firm, potentially taking you out of the running for your future dream role. Salary will always play a large role in total compensation; however, there’s more to career satisfaction than money. In fact, 20% of individuals who switched jobs during the pandemic are now experiencing regret according to a recent Harris poll. Be honest. Sincerity is key in today’s market. If you are actively or even passively searching, spend time determining what you are looking for in your next position and be transparent in communicating those expectations throughout the interview process. This could include a firm and realistic salary range, paid time off, professional development opportunities, defined career paths and more. Look at the full total rewards package a company is able to offer, as well as potential flexibility, team dynamics and overall culture. If you’re excited about an opportunity, but the compensation isn’t where you need it to be, share your concerns and strive to reach an offer that is desirable for both you and the employer. At the same time, if you determine a role is not the right fit, let the hiring manager know as soon as possible. Make a graceful exit. If you receive an offer you can’t refuse and choose to accept a new position, be thoughtful in how you discuss your decision with your current employer. Keep the conversation positive and if appropriate, let them know how the new role meets your career goals and objectives. Avoid listing grievances or complaints; if truly relevant, this should have been discussed far earlier in your tenure. Your goal should be to leave in a way that makes you re-hirable in the future. New positions could become available, or your manager could move departments or companies. Leave on a positive note and avoid burning bridges. Focus on the future. The insurance industry is small and currently experiencing increased movement. Many recruiters, hiring managers, past supervisors and colleagues will move to new companies or be promoted within their current organizations. It’s likely your paths will cross again whether it’s at conferences and industry networking events, as colleagues, or in a recruiting capacity. How will they remember your interactions? What might they say about you to other professionals? Ensure you’re thinking and acting through a long-term lens. The talent marketplace will continue to ebb and flow. Consider where you want to go in the greater scope of your career and how you can continually set yourself up for success. By focusing on having honest conversations and building connections, you can further establish your professional presence and positively impact your personal brand in the current candidate’s market.

Insight on Today’s Pressing Talent Questions

The talent landscape continues to shift and present new challenges for insurance leaders. From the abrupt adoption of remote work and a focus on contingency planning at the start of the pandemic to the current “Great Reshuffle” (and potentially “the Great Regret”), ongoing evolution and real-time learning have been key themes throughout the past two-plus years. Currently, the industry is in one of the most challenging recruiting climates we’ve ever experienced. As a result, our team has been frequently sharing our unique perspective on a variety of topics with clients and other insurance leaders, industry publications and association partners. We’ve compiled a few of the most common questions our thought leaders are answering in the below Q&A. We hope you find their insight valuable as you move forward with your talent plans and an evolving state of “normal.” Q: What are some of the main challenges of remote leadership and how can managers be most effective? A: The role of a leader is continuing to evolve to best accommodate changing employee needs in virtual and hybrid environments. As organizational culture and work environments are redefined, managers must be committed to connecting their team members with each other, as well as the larger organization. Creating a sense of connection and shared culture that transcends locations is vital and must be approached intentionally and proactively. At the same time, management teams are having more frequent conversations around behavioral health. Insurers are reevaluating the need for EAPs while equipping their leaders with the tools and training to best respond to employee concerns and challenges. Individuals adopted several new normals – both personally and professionally – during the pandemic and leaders are working to identify ways their teams can move forward most effectively while providing ongoing support.                                       - Judy Busby, Senior Vice President of Executive Search and Corporate Strategy Q: Are insurers feeling the impacts of “the Great Reshuffle”? How can they come out ahead? A: Most insurers are experiencing recruiting difficulty and increased movement among their teams. In response to this “Great Reshuffle” of talent, it’s important to rethink employee retention and professional development strategies. “Stay interviews” can help managers better gauge their employees’ current job satisfaction and gain alignment on what it will take to keep those individuals with the company. Encourage candid and transparent conversations around whether your employees’ needs are being met and what they desire in a long-term role. Ensuring individuals are being compensated fairly is also crucial to retention. What would they receive if they interviewed for a similar role at another company? What else can you offer that may encourage them to stay? Proactively evaluate how you can gain employees’ loyalty, rather than wait to make a counteroffer when it is already too late.                                                                                                    - David E. Coons, Senior Vice President Q: Given recent retirements and the ongoing movement of talent, how can insurers grow and develop individuals to move the company forward? A: While most managers recognize the importance of technical skills, one of the areas often overlooked in career development plans is leadership and interpersonal skills. Given today’s accelerating retirements and increase in voluntary turnover, it’s important to identify your high potential employees, pinpoint their strengths and areas for growth, and create customized plans to set both them and your organization up for success. This will look different depending on each organization. Even for companies that do not have formal HR-run leadership development programs, identifying the traits and interpersonal skills that are valued within your organization and providing training around them should be a priority. By integrating these skills into professional development plans – even at the more junior levels – insurance organizations will not only build future leaders, but also more effectively retain their high potential employees.                                                                - Julie Dunn, Assistant Vice President and Engagement Director Q: What are you seeing in terms of salary expectations in the current market?   A: To stay competitive, employers must review their compensation plans and ensure they’re at market value. As the demand for talent increases, so are candidates’ salary expectations; yet, many organizations are still calibrating to the current market. According to the BLS, insurance industry salaries have risen by nearly 8% since the start of the pandemic. Most active candidates are receiving two or three offers in today’s market, making it vital to present your best and highest offer to avoid missing out on top talent. While salary will always be important, other forms of compensation such as paid time off and performance bonuses can carry substantial weight in a comprehensive plan. Money alone will not ensure long-term job satisfaction, as evidenced by the emergence of “the Great Regret.” Continually seek feedback from employees about their current compensation and focus on how you can best meet their needs.                                                                                                      - Diana Shay, Assistant Vice President

2022 Underwriting Trends Guide

Learn which upcoming trends will drive the underwriting industry forward this year. Insurers are continuing to experience the most competitive labor market in recent history. From intensifying recruiting difficulty to shifting candidate expectations, the underwriting function must adapt to a changing industry.

Health Highlights: Q2 2022

The health insurance industry is facing a number of unknowns while continuing to evolve in the pandemic’s wake. Our team has frequent conversations with health insurance leaders across the country, keeping a pulse on how they are preparing for the unexpected, while accommodating the needs of both their employees and members. Below are a few key areas that are on our radars as we approach the second half of 2022. Increased Demand for Health Insurance TalentThe insurance industry as a whole is experiencing one of the most challenging labor markets in history. Sixty-five percent of life/health insurers plan to add staff this year, according to our recent Q1 2022 Insurance Labor Market Study, conducted in partnership with Aon, plc. The majority of those planning to grow their headcounts say it’s due to anticipated increases in business volume. However, while additional staff may be needed to meet these business needs, recruiting is at its most difficult level in the study’s 13-year history. Finance and insurance job openings reached a peak at the beginning of the year, while insurance unemployment remains low, reflecting a significant lack of available talent. Health insurers must evaluate how they’re attracting and retaining talent at all levels to remain successful and meet increasing demands. Need for Behavioral Health SupportProfessionals’ behavioral health has also been impacted as they cope with the effects of the pandemic. A recently published study by The Hartford found nearly three-quarters of employers believe employees’ mental health is impacting their company’s financial performance. The percentage of workers who report feeling depressed or anxious at least once per week has increased from 20% in 2020 to 34% in 2022. Additionally, there is a notable disconnect around the perceived stigma of mental health: 82% of employers feel their work environment inspires dialogue around mental health, compared to less than half of employees. At the same time, fewer companies are offering Employee Assistance Programs to support their staff. While this is an industrywide issue, health insurers have been at the forefront of this space, with many proactively evaluating their wellness plans and their effectiveness, as well as acknowledging behavioral health’s place in an inclusive work environment. New Areas of Focus for LeadershipAs a spotlight is placed on behavioral health, there’s also a need for health insurers to effectively train their leadership teams and managers to communicate available resources, while also demonstrating empathy that transcends across hybrid and virtual environments. Many managers have well-developed technical skills, but may feel uncomfortable engaging in transparent conversations about employees’ concerns, stressors and overall job satisfaction. Training on interpersonal skills and emotional intelligence will likely become more common as managers navigate shifting employee needs and behaviors. Impending End of Public Health EmergencyThe COVID-19-related public health emergency (PHE) was renewed until July 15, meaning July 31 is the earliest potential end date for continuous Medicaid enrollment. However, it could extend into October if a 60-day notice is not given by May 16. Although the PHE end date continues to shift, just 27 states have plans in place for prioritizing outstanding eligibility and renewals, according to a Kaiser Family Foundation survey. Medicaid/CHIP enrollment has increased by nearly 16 million individuals since the start of the pandemic – for many states it has been the largest enrollment period since the Affordable Care Act. Once the PHE expires, many of these individuals will lose their state-funded coverage and need to move to an exchange or private plan. Insurers that work with Medicare/Medicaid must be prepared to quickly staff call centers and proactively capture new memberships, while addressing inquiries and providing the best customer experience possible. Emphasis on Risk AdjustmentThere’s also a continued emphasis on risk adjustment as insurers work to optimize their models and account for the impacts of COVID-19. Roughly 40% of Americans delayed medical treatment during the summer of 2020, according to a U.S. Census Pulse Survey. Collection and interpretation of data will remain vital for risk adjustment, yet may not tell a patient’s full story. For instance, it’s estimated risk scores for Medicare Advantage beneficiaries were 9.5% higher in 2020 than for similar beneficiaries in traditional Medicare, resulting in an overpayment of roughly $12 billion. As plans work to achieve more accurate and holistic programs, it may be necessary to bring in additional data analytics experts to support and evolve contracting partnerships and renewals. New services and specific healthcare inclusions for the population and members you are serving (such as behavioral health services) could lead to more optimum coverage, reduce overall costs and result in the best possible care.As employee and member needs continue to evolve and health insurers position themselves for success in the aftermath of COVID-19, maintaining a sense of transparency and adaptability is essential. Being prepared for shifts in Medicare/Medicaid and focusing on the health and well-being of your team are key in effectively moving forward. For more Health Highlights, click here.