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The Human Element of AI Transformation

Discover ways to effectively navigate through AI transformation. Only 4% of companies say they’re creating real value from their AI investments. The key differentiator is how well organizations manage the human side of implementation. 

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Developing Leaders for Tomorrow’s Actuarial Teams

One of the pressing topics within the actuarial community is how to grow and develop good actuaries into great managers. The actuarial profession is built upon solid technical skills and ongoing development. An analytical mindset and the ability to comprehend complex data sets and numbers create a firm foundation for any young actuary. However, as individuals step into management roles, they must augment this knowledge with leadership skills to be truly successful. Actuaries continue to increase in demand, as organizations recognize the value of their core skills outside of traditional areas such as pricing and modeling. As a result, it’s becoming much more common for actuaries to need to lead larger teams, and even teams that expand outside of the actuarial space. Effectively conveying complex concepts and inspiring excellence from both actuaries and non-actuaries is essential for these individuals.  In addition to the expansion of actuarial roles and responsibilities, there’s a continued mid-level actuarial talent gap. Current leaders must focus on growing and retaining these mid-career individuals by providing development opportunities and setting them up for success within the managerial ranks. As the role of the actuary shifts, a variety of skill sets and attributes are necessary to be most effective. In our experience, there are a few areas that can take technically skilled actuaries to the next level in their careers, while driving their organizations toward business goals. Areas of FocusThe role of the actuary is expanding and skills such as being able to tell a story around data, influence outcomes and lead effective teams are becoming more important than ever. Depending on the situation and team, a variety of soft skills can help launch actuaries into the realm of great leadership. Here are a few that are in high demand and can greatly impact an actuary’s career trajectory. AgilityBeing able to adapt and redirect a team’s focus is essential in today’s working environment. Artificial intelligence and technological advancements are changing how actuaries work and expanding their capabilities. Reskilling and upskilling have also become common for actuaries to remain relevant and knowledgeable, while avoiding skills gaps. In the evolving environment, the ability to quickly learn new programs, integrate newly available information and even adjust project scope are vital. Ability to Think Big PictureEspecially within project-focused teams, it can be easy to operate with a narrow, tactical focus. However, in addition to solving immediate challenges at hand, true leaders consider longer term impacts and anticipate potential roadblocks. It’s important for actuarial leaders to consider all stakeholders, as well as how those stakeholders will be impacted and their abilities to influence outcomes. Communication The days of the back-office actuary are over. Today’s actuarial leaders must effectively communicate with a variety of audiences, from organizational leadership to their own employees and peers. Well-honed presentation skills and the ability to facilitate meetings and conversations in person, remotely and in hybrid environments are crucial. Additionally, effective actuarial leaders must be able to break down data and share it in a way that is digestible and enables those outside of the actuarial community to understand its importance and impact.EmpathyIn the pandemic’s wake, employees’ expectations around empathy are shifting. Rather than focusing on set rules and processes, leaders across all insurance functions must be in tune with employee needs. The ability to listen to employees, accommodate their unique situations and continue to meet business goals, is becoming a mark of a great leader and essential to retention efforts.  Effective DevelopmentAs a current actuarial leader, ensure individuals on your team are given opportunities to flex their interpersonal skills while continuing to build technical competencies. Allow team members to run meetings with varied audiences, and encourage them to step up and participate in high-visibility projects. Early on in actuaries’ careers, even before they are on the management track, include soft skills in their career development plans in parallel with technical expertise. Provide exposure to other areas of the organization. Learning how other departments operate will help create a more comprehensive understanding of the business. This helps provide insight into stakeholder objectives and builds awareness of other departments and their goals. This may also include cross-training and reskilling opportunities, as business needs expand and evolve.Offer management training. Create career development plans that include training for management and leadership skills. Individuals are seeking support as they move to the next level in their careers and clear professional paths play a large role in employee retention. Ensure your future leaders are set up for success and have the training and skills necessary to thrive. Allow people to fail fast. Give employees the opportunity to step out of their comfort zones and take on stretch projects and other challenges. In the actuarial space, there has always been an emphasis on being correct; however, this can be a hindrance as individuals grow into leaders. Encourage stepping into unfamiliar territory and increase their comfort levels around making and learning from mistakes. Demonstrate you have confidence in your team and their leadership potential, and that you’ll continue to support them as they grow. Prioritize leadership development. Often, pressing projects and initiatives can cause development and training opportunities to be pushed aside or neglected. Ensure you’re prioritizing your next generation of actuarial leaders and providing them with the skills and knowledge to effectively lead teams and move to the next phases of their careers. A strong leadership pipeline should be a department-wide priority.As the role of the actuary transforms and continues to grow in scope and demand, strive to create a sustainable bench of future leaders. Emphasize soft skills in addition to technical skills, support growth and development in all areas, and embrace opportunities to provide learning experiences and unfamiliar challenges. By prioritizing leadership development, the industry will be well-positioned to take on future needs with capable and effective leaders at the helm. 

Episode 2: Leading in the Virtual Environment: Discussions with Insurance Leaders

Fully remote and hybrid environments are here to stay and insurance leaders are continuing to evolve their styles and strategies to accommodate shifting needs. In this episode, host Greg Jacobson sits down with Stan Galanski, founder of G58 Capital, board chair of Prosight Specialty and board member of Aviva’s Canadian business; Maroun Mourad, president of global underwriting at Verisk; and Gerardo Monroy, senior vice president of Aflac U.S. Innovation Strategy and Execution. These three industry executives share their insights and experiences, as well as how leaders can most effectively move forward in the new working environment.

Health Highlights: Q4 2021

Health insurers are facing a turbulent labor market with complexities caused by vaccine mandates and government regulations, a tightening employment landscape and the implications of “the Great Reshuffle.” Our team talks with health insurance leaders on a regular basis, keeping a pulse on what is impacting the talent marketplace. Below are the pressing topics and trends we’ve been discussing as the industry continues to adapt to the pandemic’s ongoing effects. Vaccine MandatesCompliance with vaccine mandates is a high priority for health insurers. There’s little more than a month before the Dec. 8 deadline for government contractors to be fully vaccinated, a requirement that will directly impact plans working with Medicare and Medicaid. At the same time, many plans attached to health systems that do not participate in Medicare and Medicaid programs are preparing for self-imposed mandates. In some cases, these mandates also apply to remote workers, causing an already meager talent pool to contract even further. Health insurance leaders must think through what these changes could mean for their staffing plans and prepare for potential needs. Develop contingency plans and focus on how your talent strategies for full-time employees, as well as interim talent and contractors, may need to be revised to maintain business continuity and avoid gaps in service levels. Additionally, begin adjusting your hiring practices to include proof of vaccine, without sacrificing quality of talent. Tight Job MarketWhile vaccine mandates may exacerbate staffing challenges for many health plans, the current state of the insurance job market should not be overlooked. According to the Bureau of Labor Statistics, the unemployment rate for insurance carriers and related activities dropped to 1.9% in September – its lowest since the pandemic began in March 2020. While many jobs are available, there are not enough qualified individuals to fill them. In fact, nearly 75% of life/health insurers are planning to increase their staff in the next 12 months, with 73% attributing this growth to areas that are currently understaffed, according to our Q3 2021 Insurance Labor Market Study. We’re noticing organizations developing a false sense of security around the availability of talent. Health insurance leaders must acknowledge the tight market and build contingency plans that account for reshuffling, increased workloads and loss of employees due to vaccine mandates. Rethinking strategies around retention and employee engagement is also crucial, especially as higher-skilled positions, such as actuaries and medical directors, experience significant shortages. Those plans going through or anticipating mergers and acquisitions must also have a clear understanding of the impact on talent. While there may be redundancies in roles, it’s likely workloads will remain the same and employees will need to be not only retained, but reengaged. Continued Modernization ProjectsModernization projects are moving forward as customer experience, telehealth and other technological advancements continue to be emphasized. Amid employee reshuffling and organizational realignment, many health insurers are in need of experienced contractors to complete projects when backfilling roles isn’t necessary. Some of these projects began prior to the pandemic and have withstood hiring freezes, individuals exiting the organization or being promoted out of roles, department restructuring, and even company acquisitions. Now, as these projects are moving toward completion, organizations may not want to replace full-time team members, but do need to effectively push projects across the finish line. Bringing in skilled and specialized contractors is making it possible to be flexible with talent and bring longer-term projects to fruition. Need for Succession Planning at all LevelsStrategic and intentional talent strategies are vital for tackling forthcoming complexities. Developing employees and retaining high performers at all levels must be a priority. Health insurers can protect themselves against gaps by building a strong bench in all areas, especially those positions that traditionally have higher turnover, such as front-line workers. Consider how you can grow your customer service and claims roles and create longer-term development plans to keep talent within your organization. Additionally, extend succession planning to include directors and even some middle management roles, rather than focusing solely on executive leadership. Thoughtful contingency and succession plans will enable you to respond proactively to the ongoing implications of COVID-19. As health insurers work through the challenges of the next few months, anticipating potential talent needs is imperative. Consider areas where you may require skilled individuals to move forward with initiatives, such as quality audits and modernization projects, while also accounting for talent that may exit the industry or take on new opportunities. Focus on retaining your employees, preparing a strong interim talent strategy and strengthening your internal bench. The health insurance landscape will continue to evolve; having the flexibility to adjust along with these changes will set successful organizations apart. View past Health Highlights here.

Compass 14.4 Maintaining a Leadership Presence in the Virtual Environment

This quarter’s Compass feature article explores how to adapt your leadership style to be most effective in today's hybrid environment. The newsletter also includes an overview of the industry's current labor market and recent executive-level job changes.

The Inside View of Board Searches: Determining the Right Skills

The insurance industry has undergone dramatic transformation in recent years, and numerous shifts and challenges are still on the horizon. As priorities shift, its imperative boards take a deliberate and strategic approach to board refreshment and succession.

Adapting and Evolving to Meet Future Demands

In this Insurance Journal article, Brett Carter shares how leaders can rise to new challenges and drive the industry forward.

Adapting and Evolving to Meet Future Demands

Published in Insurance Journal: COVID-19 has forced the insurance industry to quickly adopt new ways of working. As customer expectations continue to evolve, insurance leaders must be future-focused and able to inspire and support new ideas and solutions within their teams. Fostering a culture of innovation to rise to new challenges and drive the industry forward is paramount.

The Fight for Claims Talent

Published in CLM Magazine As professional values and motivators shift, employees are now reevaluating their goals and employer expectations and exploring new career opportunities. Learn how to come out ahead in the Great Reshuffle by proactively building your bench strength, focusing on employee needs and developing intentional retention plans.

Measuring the Effectiveness of Your Contingent Labor Program

The use of contingent labor continues to increase, especially in today’s complex and continually changing business environment. Staffing Industry Analysts predicts staffing industry growth of 16% in 2021. Additionally, our recent Q3 2021 Insurance Labor Market Study found 96% of insurance carrier respondents plan to maintain or increase their use of interim employees in the next year – marking the study’s all-time high. Understanding how to measure your contingent labor program’s effectiveness is essential, no matter how far along you are in your program’s maturity. Define what success means to your organization and how your contingent workforce can play into the larger picture and advance strategic objectives. Once you’ve identified what you’re aiming to achieve, be diligent in prioritizing your goals based on what will make the greatest impact. It can be easy to try to improve in all areas, but we’ve found focusing on five to 10 metrics is ideal. This provides enough insight to understand larger trends, while enabling you to funnel your energy into what matters most. There are numerous key performance indicators that can provide valuable insights. Below are a few areas you may choose to measure, along with the more specific KPIs that can help you track progress within those areas. KPIs Related to Cost and Savings How is your program affecting your bottom line? Ability to reach and maintain a competitive candidate pay rate Accuracy of spend forecasts Effectiveness of program tools Conversion fees and overtime costs Talent acquisition and turnover costs KPIs Related to Program Quality Are you receiving quality talent?  Effectiveness of program operations Quality of talent Overall performance of suppliers/vendors, including submission rates, time-to-fill, etc KPIs Related to Efficiency and Delivery Are involved parties being held accountable for their roles in the program’s success? Responsiveness of hiring managers Efficiency and quality of suppliers/vendors Ability to deliver positive employee experiences from onboarding to offboarding Extensions and terminations of contracts KPIs Related to Diversity, Equity and Inclusion Is your program demonstrating an ongoing commitment to DEI? Existence of supplier standards and commitment to DEI Creation of a diverse and inclusive environment Ability to maintain a diverse talent pool and compile a diverse slate of qualified candidates  KPIs Related to Risk Management Is risk being effectively mitigated? Frequency of worker misclassifications Existence of criminal behavior Ability to comply to employer standards Willingness to follow code of conduct While all of these areas hold value, consider which will have the greatest impact on your overall goals and ensure you’re reviewing progress at least quarterly. Along with the above metrics, you may also consider periodically surveying hiring managers and candidates to gain additional insight into your program’s performance. By taking the time to outline how a successful program will be defined and choosing the right KPIs to help measure progress, you’ll set your organization up for an impactful and productive program. For more on creating a best-in-class contingent labor program, view this recent blog post.

October 2021: Labor Market Pulse

The insurance industry’s unemployment rate dropped a full percentage point to 1.9% in September, reaching its lowest since the start of the pandemic. However, while the unemployment rate is low, industry employment also continues to drop. This is likely due to the complexity of the job market, and the effects of not only the Great Reshuffle, but also the Great Realignment. As vaccine mandates are implemented within some organizations and we enter the winter months, individuals are likely to continue adjusting their priorities, expectations and goals. The overall U.S. economy saw its lowest job gains of the year, as individuals continue to leave the workforce. In the tight labor market, it’s essential insurers retain top talent. Savvy leaders must focus on building strong remote and hybrid cultures while meeting shifting employee needs. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector decreased to 1.9% in September.  The insurance carriers and related activities sector lost 2,900 jobs in September. At roughly 2.9 million jobs, industry employment decreased by approximately 6,000 jobs compared to September 2020. The U.S. unemployment rate decreased to 4.8% in September and the overall economy added 194,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, August* insurance industry employment saw job increases in title (up 11.3%), and agents/brokers (up 2.4%). Meanwhile, job decreases were seen for reinsurance (down 4.9%), property and casualty (down 2.7%), TPAs (down 1.5%), claims (down 0.3%) and life/health (down 0.3%). On a year-to-year basis, August* saw weekly wage increases in reinsurance (up 7.7%), TPAs (up 3.1%), life/health (up 2.2%) and agents/brokers (up 1.8%). Meanwhile, wage decreases were seen for title (down 5%), claims (down 0.8%) and property and casualty (down 0.1%).      BLS Reported Adjustments: Adjusted employment numbers for August show the industry saw an increase of 700 jobs, compared to the previously reported decrease of 800 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.

Four Questions for a Mindful and Focused Job Search

As the industry experiences “the Great Reshuffle,” it’s likely many people within your network are accepting positions at new companies, reevaluating their professional paths or making lateral moves. The experiences of the past 18 months have inspired individuals to reprioritize their work and personal responsibilities. Professionals have adjusted their employer expectations and redefined career satisfaction and success. However, if you are thinking about making a move, there are several factors and considerations that should go into an informed decision. Take the time to do your due diligence and be intentional and thorough in determining your next steps. Understanding your personal motivators and having a clear vision for what you are looking for in your next role will ensure you’re able to secure a position that best meets your expectations. Here are a few questions to help guide your decision-making process. Why do you want to make a move? The pandemic has blurred the lines between professional and personal lives. For some, deciding whether to make a move has less to do with climbing the ladder and more to do with achieving broader life goals. Determine what you’re hoping to gain at a new company. More flexibility? A different work culture? The ability to further your education? Identifying your specific motivators will enable you to be more focused and effective in making meaningful changes. What do you have the power to change within your current role? Once you’ve pinpointed your motivation, determine if there’s anything you can change within your current role to help meet those needs. Often, people are feeling restless in their responsibilities and the monotony of their days; it’s helpful to differentiate between feeling uncomfortable and being ready to make a move. How can you feel more connected to your coworkers or the organization? How can you add variety to your workday? Even if you ultimately decide to look for a new position, small changes can make a big impact on your happiness and fulfillment at work. What is your current organization willing to provide? Before walking away from your current organization, make an effort to have genuine conversations with your manager to discuss what you’re looking for in your career and any short-comings or expectations that are not being met. Perhaps that’s more flexible hours, a four-day work week, more money or a change in title. Maybe it’s additional support and clarity in moving to the next level of your career. By initiating candid conversations, you’ll have more confidence in what your organization is willing and able to provide before you decide to leave. How can you target the right role? If you’ve decided a new role is the right answer, leverage your network for insight on companies and opportunities that might be a fit. Consider meeting for coffee or having short Zoom calls to better familiarize yourself with other organizations and to share what you’re looking for. Be diligent in investigating companies and understanding their culture. Peruse employee review sights, talk with current and former employees, and seek out informational interviews. As you move through the interview process, be honest about your expectations. In the current environment, hiring managers have been very open to answering questions and providing additional information. Although the industry is in a candidate’s market, simply changing roles won’t automatically equate to increased job satisfaction. Take the time to evaluate what you’re looking for and make informed and strategic decisions around your next career move.

Focus on Culture: Engaging Employees in the Remote Environment

Published in Insurance Journal: As remote work continues to be the standard way of operating for most businesses, insurers must strive to keep individuals connected by taking a proactive and intentional approach to remote employee culture. Explore ways to develop long-term strategies around virtual engagement to keep employees engaged, productive and loyal.