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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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Q1 2019 U.S. Insurance Labor Market Study Results

The Jacobson Group and Ward Group conducted a study to investigate hiring trends within the insurance industry. The following presents the findings of an Insurance Labor Market survey conducted in the first quarter of 2019...

Insights into the Insurance Talent Marketplace: Trends for 2019

The insurance industry stands amid a rapidly evolving talent market. Insurers are now face-to-face with the rise of innovation, emphasis on corporate culture, push for inclusivity and growing temporary workforce. Is your organization prepared? Here are top the nine insurance industry trends we expect to see in 2019: Insurers Revisit Recruiting and Hiring Practices Amidst Candidate-Driven Market: The current candidate’s market requires insurers to reevaluate their recruiting and hiring practices in order to expand their talent pools and appeal to the top talent needed to succeed. Salaries Reevaluated as Talent Market Competition Heats Up: Insurers must revisit their compensation plans to gain a competitive position in the challenging talent marketplace. Talent Management Strategies Broadened as Temporary Workforce Continues to Grow: Understanding the value of a seamlessly blended workforce and making it a reality organization-wide yields endless benefits in terms of productivity and innovation. Future of Work Calls for Soft Skills Proficiency: The future of work ignites a need for soft skills only humans can possess. Refining employees’ soft skills will be critical for insurers looking to stay competitive in the marketplace. Evolving Industry Demands New Type of Leader: The evolving business reality requires a different kind of leader, one who can courageously and effectively navigate their teams through the challenges the transforming industry presents and inspire continued success. Modernization Draws Attention to Retention Strategies: Insurers often find it challenging to motivate and retain employees during innovation. Organizations should focus on retaining and training their current employees to stay ahead. Culture Seen as Long-Lasting Solution to Employee Benefits Focus: Merely implementing creative benefits as a means to improve retention and engagement is a temporary fix. A holistic approach to workplace culture will result in long-term value. Emphasis on Diversity Influences Recruitment Plans: As it has now become evident that diversity is good for business, recruiting professionals of diverse backgrounds and perspectives must be a priority for insurers to stay competitive in today’s marketplace. Human Resources Embraces Potential of Marketing: The candidate-driven market requires insurers to integrate the fundamentals of marketing into recruiting strategies to approach the candidate journey the way marketing professionals manage the customer experience. Want to learn more about the top insurance industry trends anticipated in 2019? Download our full trends guide for an inside look. 

Holistic Talent Strategies for the Future of Health Insurance

Written by Joanne Turner, Assistant Vice President, and Blake Grimm, Client Development Manager The future of healthcare is upon us and it’s offering a chance for payers to lead the industry through innovation and expansion. Global healthcare spending is projected to reach $8.7 trillion by 2020. Organizations are continuously finding smarter and more innovative ways to deliver efficient and effective patient care. The unprecedented growth commands additional job opportunities. According to the Bureau of Labor Statistics, the healthcare industry is expected to add four million new jobs and account for approximately a third of total job growth by 2026. Yet like providers, most payers do not have enough qualified professionals to take advantage of the endless opportunities. The general population is growing and aging, increasing demand for healthcare services across the country. Meanwhile, 61 percent of life and health insurers plan to increase staff by July 2019, according to The Jacobson Group and Ward Group’s Semi-Annual Insurance Labor Outlook Study; and recruiting difficulty still persists for nearly all functions. No matter how many business opportunities are within reach, payers cannot take advantage of them without the right talent resources in place. Analyzing Opportunities and Risks Many cite innovation as a driver of the healthcare industry’s exponential growth. Technological advances now allow organizations to make better informed, high-impact business decisions. Digitalization has revolutionized the sector, not just for back-office activities such as billing and claims processing, but also on the front lines of patient care. Health sensors, wearables and trackers collect patient data efficiently and quickly derive actionable insights. As a result, insurers are tasked with finding innovative talent to reimagine their futures and ultimately stay ahead of the competition. While technology presents the opportunities and can streamline many tasks and increase efficiencies, organizations still need creative talent in place to rethink business plans and strategies and execute change. Big data, especially, has become the “backbone” of healthcare by providing a foundation for payers to build effective, personalized preventive care systems. Payers are increasingly forming joint ventures with hospital systems, sharing data and collectively deriving preventive care insights. Shared clinical data allows both parties to minimize preventable risks and provide more cost-efficient services. Experts predict payer-provider partnerships will continue to gain momentum. To cultivate the most from these provider partnerships, insurers are increasingly searching for clinical talent with expertise in both the insurance and hospital space. These well-rounded employees are the perfect ambassadors for the new age of venture partnerships. Leveraging their first-hand knowledge and expertise of the care delivery system, clinical professionals can help insurers better understand their insureds’ history and needs, improving their services and, ultimately, the wellbeing of their customers. However, the looming industry talent shortage is preventing payers from acquiring the necessary human capital to fulfill all these growing demands. As the need for creative, tech-savvy and versatile professionals is shared across nearly all industries, health insurers encounter significant hiring challenges. To retain a lead in the healthcare market, organizations must find ways to build a sustainable talent infrastructure for years to come. Preparing a Comprehensive Talent Strategy It is crucial organizations rethink their overall talent management plans in order to overcome human capital risks and thrive in the age of innovation. One way payers can start tackling the talent crisis is through retention. Insurers can provide creative benefits, such as flexible work arrangements or voluntary time-off programs, to prevent employees from leaving in search of more appealing benefits. The importance of revisiting and reinvigorating staff development programs should not be overlooked. In fact, employees who feel their companies are invested in their development and success are more likely to stay and to remain engaged. Launching internal mentoring and networking initiatives for young professionals can also minimize organizational knowledge loss brought on by mass retirements. At the same time, providing personalized training modules catered to each employee’s strengths and weaknesses will help payers foster innovative, well-rounded workforces. By retaining top talent, insurers can reduce the cost of unexpected vacancies and minimize resulting business losses. A holistic talent management strategy starts with strong recruitment efforts. Given the tightening talent pool, payers need to look beyond their traditional talent pools in search of next-generation talent. Even without a deep understanding of the industry, the right candidates can leverage foundational expertise to provide impact once they are brought up-to-speed. As digitalization and big data continue to become more and more integral to healthcare, traditional processes are being rewritten, while historic roles are being redefined. External and internal candidates should be evaluated as a sum of their unique skills and experiences rather than defining them by past experiences to ensure they can impact the organization’s future state. Technological assets can help insurers bolster their recruitment efforts. Nearly all organizations today use predictive analytics to understand ongoing trends and improve their products and services. This must extend to human resources management. Insurers need to analyze their data to identify workforce trends and adjust recruitment plans throughout the year. Analytics can help organizations predict their resource needs and map out their staffing strategies. As the value of personnel increases at an unprecedented pace and solidifies its position as a competitive differentiator, the availability of top talent has become scarcer than ever before. To overcome the tight talent market, health insurers should vet search and staffing firms to ensure they have the right partner in place to help overcome today’s challenging recruitment reality when needed. It is important that payers look to industry-specific staffing experts to thrive in the age of innovation. Quality staffing partners possess expansive talent networks and are open to collaborating with clients to actually solve problems by providing both long-term staffing solutions and temporary stop gaps. With their years of industry experience and keen understanding of the market, strong niche partners can provide personalized talent solutions that cater to a client’s missions, values and corporate culture and specific needs whether they are permanent or temporary in nature. Establishing and maintaining a strong connection with the right staffing firm can help an organization stay ahead of the talent curve for years to come. An increasing consumer base and technological advances are presenting payers with an opportunity to reinvent the industry as we know it. Yet the opportunity also presents significant talent hurdles insurers must overcome in order to pursue their innovation agendas and future business initiatives. Organizations should employ a holistic talent management strategy from recruitment and training through to retention. Additionally, they can build partnerships with external parties to help expand talent pools and better position themselves to find and attract top talent. As all significant accomplishments come with great responsibilities and challenges, payers must proactively overcome the talent crisis to stay competitive in the future of healthcare.

Follow, Like and Share Your Way to Next-Gen Talent

Written by Diana Shay Milazzo, Assistant Vice President Picture this: young job seekers spent their mornings flipping through local newspapers, combing its pages for new listings and eagerly scanning the copy for responsibilities and requirements to which they were a match. When intrigued, they would package their resumes neatly with a cover letter and drop it in the mail and then patiently wait to be called for an interview. Furthermore, it was not uncommon to be in the dark about an employer until the day of the interview. Employers, on the other hand, were limited to paying for help wanted ads to attract candidates; and until resumes started rolling in, they were limited to internal candidates and referral lists. Fast forward thirty years and now employers are advertising their open positions through various online platforms, AI is notifying candidates of open positions and candidates are submitting job applications through their smart phones. The internet opened up channels, like job sites and forums, social media networks and alumni associations, through which to find work. Among them, social media is arguably the most reliable tool for attracting candidates, as 79 percent of job seekers reportedly use social media in their job search. Platforms, such as Twitter, LinkedIn and Facebook, have expanded from beyond personal status updates to encompass an agora of personal interactions between businesses and the public. Social media is no longer “nice to have.” Rather, social recruiting is now a key component of any employer’s talent strategy. It is important that organizations harness the full potential of social media to attract Millennials and Generation Z – the protagonists of the future workforce. According to the Pew Research Center, Millennials already occupy 35 percent of all employees today and Generation Z is two-thirds the size of the Baby Boomer generation. However, their lack of interest in insurance careers is a challenge that insurers have to solve to ensure future success. Virtually nonexistent unemployment and looming mass retirements are complicating the industry’s talent crisis; and engaging emerging professionals is essential for forward-looking insurers. Social recruiting provides an opportunity for organizations to promote the industry and its promising opportunities to emerging talent. The lack of interest in insurance careers is not because the industry doesn’t offer opportunities that align with what young professionals seek. It is because the industry does not tell its story in a way that resonates with them. Social recruiting is a means for organizations to stay connected to the younger generations. What must insurers do to leverage social media to attract top talent? How can organizations effectively appeal to the newest generations entering the workforce? Provide Relevant Content Social media is a powerful way to illustrate an organization’s missions and values, and this starts by sharing relevant branded content with potential candidates. It is crucial that insurers post not only internal updates and jobs, but also curate inspiring and relevant external content to improve its employer brand and reach. Insurers need to start by considering who their audience is. Published content should align with both the viewers’ interests and organizational talent initiatives. Emerging professionals who have had positive interactions with a company, including through social media, are more likely to apply for open positions. Posts also provide a simple channel for professionals to recommend their employers to their friends, increasing chances for referrals. Referred employees tend to have longer company tenures than non-referred ones. Share Content Often Just like any relationship, a firm connection with a social media audience is an adequate balance of sharing and listening. Although there are many research studies on best practices for corporate social media, it is important that employers experiment with posting frequencies to cultivate the best results and determine their own best practices. Too many posts or too little may drive followers away. Social media strategy must be unique to each organization’s audience. Analyzing engagement rates, such as number of likes or shares, and reviewing comments for each post can give an organization insight into what and how often to promote to different audiences. Raise Brand Ambassadors Social media usage should not be limited to corporate pages maintained by marketing or even recruiters, hiring managers and human resources specialists. Employers already believe social media marketing will be the most in-demand HR skill by 2020, but much more could be accomplished through active participation from employees in all areas. As a matter of fact, every employee must be trained to leverage social media as a means to authentically amplify their employers’ content and job postings. Traditional marketing strategies have proven less effective for Millennials and Gen Zers, who demand authenticity from potential employers. Personal, honest stories from individuals have proven to be more compelling, as 92 percent of people trust recommendations from friends and family over promotional campaigns. Leaders should encourage employees to tell their own stories using their own uncensored voices. All team members must be full-time brand ambassadors who promote the organization’s content and open positions to their networks. They should be encouraged to share their employers’ modernization projects to illustrate their companies’ visions for the future of work and appeal to innovative talent. Evaluate Candidates’ Online Activity As much as candidates can evaluate their potential employers through their social media activities, the platform also serves as a tool for organizations to evaluate potential hires. Scrolling through candidates’ public profiles instantly saves hiring managers’ time and resources. Although they may not be professionally branded, the profiles convey the behavioral and cultural preferences of individual candidates. By evaluating a candidate’s social media presence, organizations can effectively gauge if a potential employee is the right fit for the position in question. In the process, employers should ask themselves the following: Are the candidates retweeting the company’s thought leadership pieces? Did their professional contacts endorse specific skillsets the organization needs for the position? What type of content are they sharing or publishing? How positive/negative are their social media posts? Monitor the Employer Brand In addition to maintaining a social media presence, organizations should consistently monitor their employer brands on all relevant platforms and diligently engage with candidates. Candidates should be able to easily research a company’s career opportunities, leaders, employee benefits and company culture. At the same time, company information needs to be regularly updated in recruiting websites, such as Glassdoor and Indeed. Negative reviews on such platforms tend to heavily influence a job seeker’s decision to apply for a position or accept an offer. In fact, more than half of job seekers decide against applying for a position after reading a negative review about the employer. Employers should treat every review as a personalized email and provide consistent and fair feedback. Make Careers Page Mobile-Friendly However engaging and inspiring a company’s social media posts are, social recruiting cannot live up to its true value when the company’s careers page is not mobile-friendly. In today’s age of technology, people use their smart phones not only to access social media and browse information, but also to actively search and apply for jobs. In fact, 45 percent of job seekers use a mobile device to search for jobs at least once per day. As a result, most smart phone users who access social media on their mobile devices expect the same accessibility for other parts of the job search. With just a few clicks on an organization’s website, candidates already start forming personal opinions in regards to the company and its application process. Candidates are less likely to stay on a website where they cannot find relevant information quickly. Some of them may never revisit in the future. Employers must create and maintain a responsive, mobile-friendly website for candidates to learn more about the company and its positions. Attention spans for Millennials and Gen Zers are becoming increasingly shorter. An engaging mobile-friendly webpage filled with relevant content allows applicants to quickly find relevant jobs that fit their requirements and submit resumes and cover letters within minutes.

Compass 11.4: Flexible Work Arrangements

This issue's feature article explores building a purposeful culture that engages employees and positions organizations for future success. We caution that flexible work environments are just a quick fix and discusses other ways to build supportive, desirable and intentional workplaces needed to succeed in the future.

Where Have All The Executives Gone?

It is no secret that the insurance industry is suffering a severe talent gap created by the aging workforce. In fact, it is projected that the industry will need to fill nearly 400,000 positions in the next couple of years, but there are simply not enough employees and candidates to take these roles. According to the most recent Semi-Annual U.S. Insurance Labor Outlook Study, insurers rated executive positions the most difficult to fill at 6.8. A mass exodus of tenured, skilled professionals limits insurers from selecting their next leaders from within. These professionals could have exerted great leadership, only if they are still there. Unfortunately, now insurers are left staring at empty office chairs previously occupied by long-tenured senior executives. How did we get here? During the uncertainty of the Great Recession, insurers laid off employees and instituted hiring freezes in order to keep personnel costs at a minimum. Some professionals forced out of the industry ventured to different fields, and insurers have since carried on with a thin lineage of mid-level professionals. Now, organizations are left with a smaller bench for executive replacements. In addition, many insurers also put an end to training programs that fostered well-rounded insurance leaders for years. Historically, cross-training programs rotated new hires into different departments, allowing them to learn various functions within the organization. Even when the economy started to prosper again, organizations did not reinstate rigorous training models or return to pre-recession training budgets. Cross-training programs helped emerging professionals excel not only at their designated roles, but also provided context on enterprise-wide operations. These programs increased the organizational flexibility to sustain fluctuating workloads and ensured teams maintain productivity despite employment changes. At the same time, rotational training instilled a culture of collective success and allowed employees to better understand other functional areas and their coworkers’ responsibilities. Professionals were armed with the experience to grow into well-rounded empathetic leaders. If these programs had prevailed, insurers today would have a diverse bench of emerging leaders at their disposal. It is essential that cross-training programs are revived to prevent future executive shortages and to ensure long-term sustainability. How can we fix this? Even if forward-thinking insurers revive cross-training programs today, this cannot reverse the current talent crisis. There simply are not enough qualified industry professionals to mitigate today’s growing leadership loss. One solution is to recruit proven leaders with transferable skill sets from different industries. If highly technical experts are needed to fill in the gaps, insurers should look to the finance industry. Many finance professionals, skilled in mathematics and statistics, can seamlessly transition to actuaries, financial executives, risk managers or underwriters within the insurance space. Even though they do not come with a deep understanding of the insurance industry, they have the foundational technical acumen to thrive and exert great influence once they are up-to-speed. Organizations should also consider expanding their candidate pools to include former military officers, who come from strong leadership backgrounds. Military veterans hold high levels of responsibility and authority for their units and are people-oriented. They have years of experience in an analytical, strategy-based environment and are guaranteed to be skilled in motivating, encouraging and empathizing with others. Military training teaches officers the value of promoting diversity and being a good listener, and these individuals are well prepared to make decisions in extreme conditions and take risks. While lack of relevant industry experience may be a deterrent for some insurers, it should be noted that military officers reached the height of their careers by performing duties as fast learners in stressful environments. Many also possess strong data analysis and technology experience. This valuable foundation can be a strong learning platform for insurance knowledge. To attract these non-traditional executive candidates, insurers should continue to promote the financial stability and social value of the industry. Insurance is a recession-proof industry that provides value to society. It provides a rewarding work environment for employees and helps people recover, sometimes during some of the most difficult moments of their lives. If insurers are willing to provide competitive compensation packages, they can motivate these candidates to switch careers and provide sustainable leadership into the future. Insurers may often find locating these nontraditional candidates challenging. Partnering with an insurance executive search firm can help organizations efficiently and effectively search for candidates both in and out of the traditional candidate pool. Successful search partners have an extensive network and intimate knowledge of what it takes to succeed in the industry, translating into the executives needed to address present and future leadership shortages. As C-suite executives vacate their long-held leadership roles, insurers are left with the task of providing continued leadership and guidance to their organizations. Being open to expanding traditional candidate pools can provide immediate relief, while reviving cross-training programs can support comprehensive succession plans for the future. As the war for executive talent deepens, organizations must be ready to make long-tail investments to grow sustainable C-suite teams for years to come.

Salary Strategies to Combat the Job-Hopping Craze

Today’s insurance industry is a passive candidate-driven market. As increasing retirement rates and the widening skills gap force organizations to continuously hire, workers feel empowered to switch jobs for a raise in pay. In fact, 2.7 percent of people in the private sector voluntarily left their jobs this May, the highest level since 2001, according to the Bureau of Labor Statistics. Employees know job-hopping is effective, too. The bureau reported last month that real wages have remained unchanged for all employees since June last year, even though the overall unemployment rate has significantly decreased.  Despite the increasing number of candidates looking for better pay, many organizations are not ready to compete within this job-hopping environment. Some insurers still try to hire new employees without increasing salaries, but lateral compensation is simply not a motivating factor for candidates. Most job seekers consider lateral career moves as net-neutral decisions. Employers must start adapting their compensation plans in order to gain a competitive position in the talent marketplace. Many insurers have traditionally promoted from within as a cost-effective solution. Promoting current employees with less experience not only costs less than external hiring, but decreases onboarding time and is beneficial to organizational productivity and employee morale. It sends a message that employees do not have to change companies to find professional growth and rewarding careers. But internal promotion is not always feasible. There simply may not be a qualified candidate on your bench. As the candidate-driven market continues to heat up, insurers need to reevaluate their salary levels to continue attracting and retaining quality talent. Insurers must be prepared to pay salaries high enough to entice passive, content professionals to leave their current jobs and join a new organization. Employers can no longer rely on minimal salary increases. High performing professionals are not likely to move without significant financial incentive. Job-hopping candidates usually demand a 15 to 30 percent pay raise to even consider a new offer. However, employers often find any increase above 20 percent problematic. They worry that such a wage hike will bring dissatisfaction among employees of the same level. To balance candidates’ expectations with those of the current staff, insurers must evaluate their overall compensation strategies to stay competitive with the overall market. Demonstrating that the company monetarily values all of its employees is a decisive weapon in standing out in today’s war for talent. Well-compensated employees are less inclined to leave – even for better compensation. The cost of vacancy cannot be overlooked. The wage hike should be viewed in a long-term perspective, as it may eventually be inevitable to maintaining your workforce. When a position goes unfilled, insurers risk compromising workloads and revenues while losing competitiveness and productivity in the marketplace. The additional cost of recruiting, onboarding and training replacements increases this burden further. Competitively paid positions help retain employees. They also draw more qualified candidates in less time and help ensure roles are not left vacant for long. Organizations are often faced with making critical compensation decisions with limited information and resources. Obtaining up-to-date market data is critical. Employers often ask for candidates’ previous salaries in an effort to determine how much to offer, but many major cities and states have started to ban this practice. For example, New York City’s employers have been restricted from asking about a candidate’s pay history since last October and Massachusetts followed suit just last month. This trend is spreading nationwide, as our nation continues to fight wage discrimination and the gender pay gap. Online data is not necessarily reliable either. Employers must be cautious in interpreting fair market value from competitors’ online job postings. Advertised salary information can often be inflated with sign-on bonuses, anticipated commission and other benefits. Insurers looking to make informed decisions must remember there are no set standards in providing salary information for job postings. Many insurance industry associations conduct compensation studies and provide the results to participants for a minimal fee. These can be a valuable and accurate tool for benchmarking your employees’ salary levels with that of like companies. Establishing a relationship with a professional recruiting firm can also give you unique access to compensation trends and candidate expectations. Insurance recruiting firms offer a deep understanding of the labor market and its current trends. They can provide guidance on developing competitive compensation packages that stand apart from the competition and ultimately attract top talent to the table. Candidates seeking higher wages are dominating the talent pool. On top of the aging workforce crisis, insurers are tasked with adjusting their compensation strategies to meet their employees’ and candidates’ expectations. You get what you pay for; and those organizations willing to offer enticing salaries have a better chance of staying ahead of the current labor crisis and landing the talent needed to outperform the competition for years to come.

Compass 11.3: Ai’S Candidacy In Insurance

This issue's feature article explores how AI is augmenting the workforce and redefining the future of work. Modernization projects driven by AI are permeating all functions industry-wide, and only those organizations who are effectively adapting to the new AI-infused workplace will experience continued success. We're sharing our insights on how organizations can empower employees, leveraging their talents alongside AI to realize the potential of this technological revolution.

Diversity and Inclusion: Turning Talk into Action

The paradigm of diversity and inclusion (D&I) is evolving at this very moment. The world is not the same as it was 10 years ago. The “salad bowl” is quickly replacing the United States’ “melting pot.” Men stand as allies to tackle gender disparity and support equal representation in organizations, companies are publicly and boldly demonstrating their support of the LGBTQ community, and workplace activists are actively collaborating with individuals and teams to contextualize workplace equality. Insurers are extending their definitions of diversity, striving to bring in new, fresh perspectives and effectively address the changing demands of their customers and employees. Leaders from diverse backgrounds are inspiring the industry to continue their work towards diverse and inclusive companies. Organizations are elevating the topic from mere conversations to tangible actions and infusing inclusion into their corporate DNAs. We celebrated the industry’s recent strides towards D&I in our recent white paper. Here are just six of the many D&I trends we touched on: Providing More Employee Resources: Many organizations now have their own corporate D&I programs and women have more resource groups available than ever before. In fact, nearly 97 percent of companies have some sort of formal or informal D&I strategy in place, and diversity training is being built into the hiring and onboarding process. Establishing Training Programs: Many institutions now provide diversity credentialing programs and certified training manuals to provide professionals with the right techniques and tools to embrace forward-thinking mindsets. Educated D&I advocates help others become accountable for promoting inclusion, linking additional benefits to D&I metrics. Elevating Diversity to the C-Suite: To tackle the absence of an active and interwoven D&I program, organizations gave birth to the Chief Diversity Officer – a C-level position focused solely on managing D&I efforts. The position has become a driving force of change and earned a permanent place in the C-suite. Openly Supporting LGBTQ communities: Many insurers have publicly demonstrated their commitment to D&I by participating in LGBTQ community events and campaigns. They have used social media to announce their support, identified their preferred pronouns in their signatures and bios, and focused on improving their workplaces for better inclusivity. Collaborating Across Organizations: Insurers are increasingly discussing D&I’s potential for innovation and problem solving at networking summits and conferences that bring diverse stakeholders together. Partnering with Diverse Suppliers: Today’s organizations are intentionally choosing diverse suppliers. Last year in California alone, insurance companies spent $1.6 billion in goods and services from diverse suppliers, a $670 million increase since 2012. What is on your organization’s D&I agenda? Download our white paper to learn how others are effectively promoting D&I in the workplace.

Diagnosing and Treating the Care Management Talent Crisis

Healthcare professionals and their patients are retiring at an alarming rate. In fact, there will be more than one million openings for registered nurses by 2024 - twice the rate seen in previous shortages. Meanwhile, there will be a 55 percent increase in number of Americans aged 65 and older who seek additional care over the next two years. However, nursing school enrollment is not increasing fast enough to meet this projected demand and lack of nursing school faculty is preventing larger program enrollments. Heavier workloads are negatively impacting nurses’ motivation, stress levels and job satisfaction, aggravating turnover rates and deepening the talent crisis. More than a third of registered nurses often consider quitting their jobs and 35 percent of them hope to leave their jobs by next year. The care management talent crisis is imminent and demands health insurers to proactively respond with intentional recruitment and retention efforts. Jacobson’s Assistant Vice President Alicia Morris recently explored this challenge in her recent white paper. Below are a few of her recommendations for treating the nursing shortage: Offer Non-Traditional Work Arrangements: Employers must work towards balancing employee preferences with business needs. By leveraging split schedules and other flexible arrangements, insurers may also open up their talent pools to individuals who can only commit to part-time positions, such as working moms or dads or those serving as caregivers to a parent or other elderly family members. Create Fluid Work Environments: Flexible work schedules and work-from-home options allow care management professionals to achieve better work-life balance. Employees will appreciate more control over their work schedules. Modernizing work arrangements and accommodating work preferences will help organizations reduce turnover rates and improve employee satisfaction. Invest in Employees: Implementing career development opportunities ensures employees that their employers are invested in their futures. Satisfied employees tend to stay with their employers, helping organizations elevate their employer brands and attract more qualified candidates. Delay Retirements: By offering incentives like decreased work hours or new leadership roles, health insurers can postpone veteran employees’ retirements. As aged professionals continue to work closely with emerging nurses, insurers can decrease organizational knowledge loss and allow themselves more time to develop comprehensive succession plans and recruitment strategies. Partner with Staffing Firms: Niche insurance staffing firms offer health insurers a unique, effective solution to the talent shortage. The right partner can leverage their extensive industry reach to provide interim nurses and medical directors who are ready to make an impact with limited training and ramp-up time. How is your organization combating the talent crisis? Download our white paper for more creative recruitment and retention ideas.

Regulations in the Age of Cybersecurity

From Yahoo to Sony to Equifax, data breaches and cyber hacks are becoming more and more common. And they are not getting any cheaper. In fact, according to Ponemon’s Cost of Data Breach Survey, the cost of a hack is on the rise – 2017 set a record high with an average total cost of $7.35 million; and the insurance industry is not immune. In fact, more than 100 million Americans have had their information hacked in insurance sector data breaches. The expansion of cyber risks and the growth of the cybersecurity insurance market are a tremendous opportunity for the insurance sector. Meanwhile, state and government-level regulations continue to increase. What regulatory and compliance changes should insurers be aware of in 2018? Federal There has been a significant push in recent years to amend and improve the cybersecurity laws currently in place. For example, in 2015, the U.S. government passed the Cybersecurity Information Sharing Act, which encourages companies to share information on cybersecurity threats and defensive measures. Since then, numerous bills have been introduced, such as the Federal Exchange Data Breach Notification Act of 2015, which requires a health insurance exchange to notify each individual whose personal information is known to have been stolen. Many more legislative proposals can be expected as cyber hacks change and intensify. Most recently, Congress introduced the Data Security and Breach Notification Act, which would “protect consumers by requiring reasonable security policies and procedures to protect data containing personal information, and to provide for nationwide notice in the event of a breach of security.” State-Level On the state level, 2017 saw widespread action throughout the country. In fact, 42 states introduced 240 bills related to cyber threats; and as of March 2018, all 50 states have enacted legislation requiring private or government entities to notify individuals of security breaches involving personally identifiable information. Perhaps the most aggressive state regulation came from New York in 2018. They passed the first-ever cybersecurity regulation requiring business entities that operate in the financial services sector (including banks, insurance companies and other financial services institutions) and have $5M in revenue to submit proof of a cybersecurity plan of operation. According to the Department of Financial Services, “The NYDFS Cybersecurity Regulation works by imposing strict cybersecurity rules on covered organizations, including the installment of a detailed cybersecurity plan, the designation of a Chief Information Security Officer, the enactment of a comprehensive cybersecurity policy, and the initiation and maintenance of an ongoing reporting system for cybersecurity events.” Those who are not compliant can expect to pay a penalty. Globally The European Union (EU) is also getting involved in cybersecurity regulation. According to the EU, the new General Data Protection Regulation (GDPR) “was designed to harmonize data privacy laws across Europe, to protect and empower all EU citizens’ data privacy and to reshape the way organizations across the region approach data privacy.” The regulation applies to any organization that processes and holds the personal data of individuals residing in the EU, regardless of their headquarters. Companies that fail to comply can be fined up to four percent of annual global revenue or 20 million euro for breaching GDPR.  Insurance Industry Insurance regulators are raising the bar on cybersecurity too with the National Association of Insurance Commissioners (NAIC) establishing a Cyber Security Task Force. The goal of the task force is to create a comprehensive regulatory framework for cybersecurity. In October, the NAIC Insurance Data Security Model Law was approved. Based on the NYDFS, this law will establish standards and encourage requirements for data security implementation, notification and investigation at the state level, which affects the entire insurance industry. The NAIC Model Law is currently being introduced to state legislatures throughout the country; in fact, Rhode Island and South Carolina have already introduced legislation based on the NAIC Model. Cybersecurity is changing the regulatory landscape and 2018 is poised to be a pivotal year. Companies must prepare for the impending shifts and examine how their current risk and compliance processes may be updated to fit within an evolving environment.  As governments across the globe implement cybersecurity regulations, what is your organization doing to prepare?

Underwriting Automation: Why Expectations Might Not Match Reality

The underwriting automation engine has undoubtedly become a popular approach for many insurance organizations seeking to increase efficiencies and augment their workforces. While implementing this technology is likely vital to remain competitive, there is often a disconnect between the expectations and the reality of automation’s impact on underwriting operations. Automation is not a “magic bullet,” and the technology is not going to generate immediate cost savings. Most associate automation with savings by means of staff reduction. There certainly will be less need for underwriters to evaluate every single insurance application, as insurers are increasingly relying on data and software for this task. However, the impact on headcount may not be as drastic as some expect. Some companies may simply choose not to backfill positions left vacant from retirements and other attrition. Additionally, underwriters will still be needed to personally handle the most risky, complex and time-consuming cases. Any reductions that do take place may not directly translate to cost savings, contrary to popular belief. To oversee underwriting automation, insurers will require highly skilled “hybrid” underwriters to consistently update, test, validate and maintain their automation engines. Insurers will progressively look for “renaissance employees” for these roles – professionals with a solid underwriting foundation coupled with data analysis and various technology skillsets. They will need those who understand how automation works, as well as those that can offer technical underwriting expertise coupled with a business mindset. As has been observed with the hybridization of other professions, this unique skillset will likely command higher salaries. Therefore, cost savings derived from reducing headcount may be offset by salary pressures. Automation ignites the redefinition of work and this work calls for skill sets that not all underwriting team members may have. Given that everyone is learning in the moment, leaders will need to be intentional in providing opportunities for underwriters to access their consultative instincts. Assigning projects to expand their business analysis, critical thinking and even research and communication skills will help prepare them for the new work that lies ahead. It is also important to allow front-line professionals to engage with the technology and be part of the process. Retention during automation efforts can often become challenging. Don’t let employees paint their own picture of their future work reality. Leaders must be transparent, maintaining clear communication with their staffs. Semantics are important. Focus on the people and how they might be feeling. Automation is a modernization project that is going to automate routine tasks to free up valuable resources – them! During times of change, the importance of empathy cannot be overlooked. Compounding the Knowledge Gap The introduction of automation may also inadvertently contribute to the profession’s already widening knowledge gap. Continued low unemployment and a mass exodus of underwriters to retirement continue to drive the war for talent in this area. In fact, the underwriting profession is expected to see a deficit of nearly 35,000 individuals by 2020, according to Deloitte. This expansive automation trend is challenging the traditional training methods that fostered underwriters for years. New underwriters typically spend about six months to one year undergoing initial training. Those new to the profession learn by handling simple cases, which will now be mostly in the hands of the automation engines. As a result, in the new model, organizations will be challenged to provide emerging underwriters with the same training and experience as in years past; and the talent pool for senior underwriters will be at risk of depleting. Organizations can learn from the actuarial profession when it comes to professional development. Similar to the actuarial profession, there are two underwriting-specific designations: an associateship and fellowship level, awarded by the Academy of Life Underwriting (ALU). Earning these designations requires a combination of the Life Office Management Association (LOMA) coursework and passing four ALU exams. The ALU exams are only offered once per year, requiring at least a four-year commitment for the Fellow of the Academy of Life Underwriting (FALU) designation. It has become an industry best practice to provide actuaries with paid study time as they pursue their credentials and to offer financial incentives for passing exams. Given that young professionals today rate learning and development opportunities as one of their top priorities, building an underwriting trainee program inclusive of the already available industry education will not only support training, but will also assist in the recruitment and retention of new underwriters. The talent implications of automation also provide a chance for insurers to balance effectiveness with efficiency. Organizations may be able to build the most efficient process for today with automation, but they will meet challenges tomorrow if they fail to consider the long-term consequences in parallel. Insurers have the opportunity now to build training programs that will supply their senior underwriting needs for years to come. For example, organizations may consider leveraging trainees as an additional quality assurance check on the underwriting engine. By having trainees underwrite insurance applications that were already processed via automation, they will gain foundational underwriting knowledge while the organization ensures the accuracy of their underwriting engine. With this approach, insurers can tackle the widening talent gap and have a chance to turn immediate intentional inefficiency to lasting effectiveness. Insurers must pursue automation with their eyes wide open. Automation engines will be pivotal for the future success of the industry. However, as automation grows, so does its risks. Insurers need to realign their expectations and make serious informed investments into their underwriting operations – and talent – in order to succeed. How is your organization tackling the human component of automation?