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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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Solving the Candidate Interview Puzzle

It is my pleasure to introduce a guest blogger for this latest post. Jaime Elgas is an engagement director with Jacobson’s insurance executive search practice. Her insights into interview best practices are worth a read. Enjoy… You’ve put together a carefully worded job description. You’ve closely vetted each job applicant and determined your top candidates. Now it’s time for the interview. For many organizations, this step in the process can be tricky. According to a recent study, today’s business interviews are often ineffective. In fact, a study on predictors of job performance found that the typical interview increased the likelihood of choosing the best candidate by less than two percent versus no interview. Preparation is key to a successful interview. Organizations should develop a list of carefully crafted questions that allow them to dive deeply into a candidate’s background, experience and motivation to get a better understanding of both their qualifications and their cultural fit. The most effective way to do this is for the organization to have two sets of questions.  The first set would be the organization’s “go-to” questions that they plan to pose to all candidates and the second set, is a list of more role-specific questions that probe into a candidate’s technical knowledge and the key competencies of the targeted role. So, while there will be some consistency in interview format and general questions, the more probing questions should vary from position to position. When it comes to “go-to” general questions, organizations should focus on four main areas including knowledge of the company, career transitions, motivation and 360-degree feedback. Company Knowledge Before bringing on a new candidate you want to make sure that they have adequately vetted your organization and are sure that it aligns with what they are seeking. Ask questions that can help determine if they are able and willing to make a commitment to both the job and your organization. How did you find out about the job? Have you spoken to anyone previously about the company? Why do you feel you are a good fit with the organization and its culture? What interests you most about our company? The quality of the answers can speak to the candidate’s level of interest, as well as their ability to be a proactive, self-starter who takes it upon themselves to seek information. Career Transitions Job candidates should be able to articulate their career paths in a cohesive and meaningful matter. Questions regarding career transitions should be designed to provide insights into their overall performance, decision-making processes, motivators and relationship skills. Focus on open-ended questions that provide descriptions and examples. What reasons contributed to your decision to select new opportunities over the course of your career? What major challenges and problems have you faced throughout your career? How have you handled them? What do you consider to be your most transferable skills from past positions? What are you looking for in your next job? Professional Motivations Motivation-focused interview questions are a key part of the screening process. These questions are a great way to understand what drives a candidate’s success. Are their professional career motivations a fit with the position responsibilities and your organization’s professional development opportunities? These types of questions help employers understand the alignment, or lack thereof, between their needs and the candidate’s desires.  It can also help the employer effectively influence a candidate’s level of interest by providing insight into the candidate’s top concerns. Take time to really dive deep into what drove the candidate to apply for the role. What’s on your shopping list for your next position and/or organization? Why are you seeking in a new position? If you could create a position with the perfect attributes, what would those be? What sort of tasks are you best at? In what sort of environments (busy, deadline-driven, loud, quiet, etc.) do you work the best? 360-Degree Feedback The 360-degree feedback process is capable of so much more than just evaluating employee effectiveness. It is a strategic interviewing method that will allow you organization to gain insight into a candidate’s self-awareness, collaboration and ability to interact with others at a variety of levels within an organization.  After asking a candidate to provide an example of teamwork, leadership, change management or perhaps project management. Follow-up with a question about how others viewed the candidate in different situations. How did your peers, manager, senior leaders, staff members and/or other stakeholders view you in this situation? How do you know and what evidence do you have to support that belief? What did you learn or what would you do differently if a similar situation arose in the future? Remember, interviews are not one-sided. Make sure to provide time for the candidates to ask their questions. Together, this four-pronged interview approach will provide a clear picture of whether a candidate is a good fit for your organization. What interview best practices does your organization follow?

Revive Your Recruitment and Selection Strategies: Kicking Off Your Recruitment Process

This blog entry is part four in Jacobson’s Insurance Recruitment and Selection series, which provides insights into updated recruitment and selection processes and strategies for the modern workplace. Maybe your organization is scrambling to fill an open position after its Chief Actuary moved to a different organization. Or perhaps the executive committee has decided to add an Innovation Officer to help manage and update your company’s growing evolution. Regardless of the situation, the first step in any recruitment strategy should be a kick-off meeting. Planning is vital to implementing an effective and efficient recruitment process. Finding and engaging a candidate should not be a shot in the dark. Rather, your key stakeholders must develop a carefully thought out plan. But just want should this plan entail? Meet with your key stakeholders to set a baseline of information from which to develop your recruitment plan. Ask questions to determine what they are looking for in a hire. What are the skills and characteristics required? What background is preferred? How will success be measured? Taking a deep look at the responses to these questions allows recruiters to build a complete profile of the ideal candidate and understand how they will fit within the organization. Once you have developed this blueprint of the ideal candidate, it’s time to build a process. Create a target timeline that lays out the steps in your recruitment process with milestones and goals for completion. Avoid setting unrealistic timelines as they can often double the length of your search and have a detrimental impact on your ability to hire. Build a marketable job description that not only sells the company, but also covers the key evaluation criteria set by the selection team. Include the skills, characteristics, background and values that your organization is looking for in a hire. Engage your pipeline and seek referrals from current employees. Job boards and social media are also great sources for potential candidates. Make sure that your selection team has a clear understanding of their responsibilities. They should be involved in kick-off planning and setting timeline goals. Ensure they are aware of interview strategies and follow interview best practices when meeting with potential candidates. Consider utilizing a combination of conventional interview techniques combined with behavioral and ethics-based questions in order to build a complete picture of each candidate. Encourage and promote feedback among team members. For organizations utilizing recruiting firms to assist in their hiring process, it is important that the firm has an understanding of these expectations. Make sure to do your due-diligence to make sure that you and your recruiting partner are on the same page. Set up touch bases to promote dialogue and collaboration. Most importantly, be realistic. Finding, recruiting and hiring the ideal candidate can take time. Don’t rush the process in order to fill unrealistic goals. A lack of time preparing or the inability to provide adequate attention to the hiring process has shown to result in poor hiring decisions. With nearly 70 percent of all hiring managers and HR professionals reporting bad hiring decisions, it is clear that recruitment is not a time to “wing it.” What does your organization’s recruitment process entail?

A Smooth Transition: Integrating Temporary Staff into Your Organization

As a result of the recent economic downturn, many organizations have embraced a “doing more with less” mindset­—implementing drastic staffing changes and cuts to full-time employees. Despite the uptick in industry market conditions and a return to its pre-recession state, many insurers continue to maintain a “run lean” mentality. They are now employing a staffing strategy that provides cost-effective, proven solutions to deliver organizational support on an as-needed basis—temporary staffing. Today, the total number of temporary employees is 2,957,500. Within the insurance industry, it is estimated that 30,000 temporary professionals are currently employed—a number that is only expected to increase. According to an Intuit report, by 2020, more than 40 percent of employees in the U.S. will be temporary, contingent employees. Organizations utilizing temporary staffing can occasionally hit a bump in the road when integrating these professionals into their workplaces. Your full-time employees are already familiar with the office atmosphere, are aware of their current job responsibilities and often have the support that comes with working with the same colleagues day after day. Temporary employees, on the other hand, may not have any of these same advantages. As more and more organizations continue to utilize temporary staffing, how can they best integrate these contract professionals with their full-time employees? Set the Stage: Before a new temporary staff joins your team, set up a meeting with your permanent employees to discuss the new addition. Make sure everyone is on the same page in terms of job duties and reporting. Ask for feedback and reassure your full-time employees that their jobs are safe. Eliminate Office Separation: Often organizations cluster their temporary employees into a conference room or into a separate cluster of cubicles. This does nothing more than literally separate them from other employees. It’s hard to be engaged when you aren’t working near the people you should be collaborating with. Make sure to seat temporary professionals within the group they will be working. Introduce Who’s Who: Most companies rely solely on first day introductions to ensure their contract workers have met the key players they will be working with. However, this hectic first-day is rarely conducive to remembering names and backgrounds. Instead, provide a mix of organizational charts and access to the intranet or company social media site—such as Yammer—to allow new employees to learn about their coworkers on their own time. In addition, this provides temporary staff with insights on who to contact for particular questions. Follow-up with team lunches and encourage inclusion in coffee breaks to better assimilate contract employees into your workplace. Promote Inclusion, Not Exclusion: One key way to better integrate temporary staff is to ensure that your company culture is one of inclusivity and not exclusivity. Make sure to add temporary employees to any company-wide emails, inviting them to company-wide events and bringing them into meetings. Consider hosting social events—either during work hours or after-work—that integrate all new employees into your company culture and solidify introductions and relationships. Schedule Time to Touch Base: Schedule time to touch base with your temporary professionals on a weekly basis. Check in on how things are going and answer any questions they may have. Consult with your team to get feedback on the performance of the new employees and nip any issues in the bud. This doesn’t have to be a formal, weekly evaluation. It can be as simple as a Skype chat or just a drop in at their workstation. Temporary staffing continues to play a vital role in the industry’s labor market and will only continue to do so. In light of the growing use of contract professionals, seamless integration is key to making your workforce more productive and ensuring your return on investment.

Deck the Halls with Holiday Health Hazards

The holidays are quickly approaching; and in addition to the usual hustle and bustle of the season, this time of year also introduces a unique set of health risks. Here are some common holiday pitfalls, which many of us will encounter in one way or another, from now into the New Year. Too Much “Eggnog?” Excessive drinking tops the list of potential hazards during this jolly time of year. When mixed with holiday travel—mainly driving—the odds of emergency room visits and fatalities increase greatly. According to the National Highway Traffic Safety Administration, about three dozen traffic fatalities occur daily on average in the United States as a result of drunk driving. During the Christmas season, that figure rises to an average of 45 fatalities involving an alcohol-impaired driver daily—a number that soars to 54 per day during the New Year’s holiday. Wherever you're traveling this holiday season, help ensure your trip is safe. Don’t drink and drive, and don’t let anyone else drink and drive. Tis’ the Season to Overeat Constantly being surrounded by delicious foods this time of year may tempt even the most health-conscious individuals to indulge in things they would normally avoid. Overeating is an overlooked but major problem during the holidays, particularly for those with cardiovascular disease, diabetes and other chronic health problems. While the often-cited average of seven pounds gained over the holidays is a myth, many people do gain weight between Thanksgiving and New Year’s Day, which can pose serious health concerns. Concerns which inevitably lead to costly insurance claims down the road. Take extra caution of what you are eating. Be aware of any underlying health conditions and consider the impact of salty, sweet and high sugar content foods. Decorating like the Griswolds Injuries are surprisingly common during the holiday season. One of the key drivers behind this uptick in injuries is the “dangerous” task of hanging decorations. When all is said and done, putting up festive decorations can turn your house into an obstacle course rather than a winter wonderland. According to the U.S. Consumer Product Safety Commission (CPCS), there are about 250 injuries per day during the holiday season. Between November and December 2014, CPCS estimated that emergency departments saw 15,000 injuries involving holiday decorating nationwide. Falling from a ladder may be funny in holiday movies, but in real life these mishaps can result in visits to the emergency room and thousands of dollars in claims each year. Keep decorating tasks manageable this year, be exceptionally cautious and avoid any excess strain. By taking some basic precautions, you can guarantee your whole family remains safe and injury-free throughout the holiday season. The holiday season is a time of festivities, family and feasting, but for many it can also be a stress-filled time riddled with health risks. Brighten your holiday this year by making your health and safety a priority. Take the necessary steps to keep you and your loved ones safe and healthy, and ready to enjoy the holidays!

Generational Spotlight: Gen Z, the Next Generation of Talent

This blog entry is part four in Jacobson’s Generational Spotlight Series, which provides a general overview of the generations active in the workforce. While we understand that these overviews may include broad stereotypes that do not apply to all members of that particular generational breakdown, we believe there is value in looking at today’s professionals from a generational perspective in order to gain a better understanding of their viewpoints. By the end of this decade, a new generation of employees will be entering the workforce at an influx even greater than Millennials. According to the U.S. Census Bureau, Generation Z currently makes up 25 percent of the population. Like those before them, this emerging generation brings its own set of distinctive behaviors to the labor market; and insurers that create a work environment that aligns with their wants and needs will uncover the next answer to the industry’s growing talent shortage. Born between 1995 and 2012, Generation Z has grown up in the information era and is accustomed to having knowledge at their fingertips. They have never known a life without fast communication and unlimited access to media technologies. Thanks to the independence provided by modern technology, Generation Z is able to work from any location, for any organization, anywhere in the world. As a result, they are putting less importance on where they work and more on their ability to be transient. While this flexibility could be beneficial to employers, there is also concern over potential retention issues. Generation Z possesses many characteristics that are connected to and shaped by technology. While members of Generation Z are experts at online collaboration, their reliance on technology as a form of communication has contributed to a lack of face-to-face social and conflict resolution skills. Employers may need to add a component to onboarding that focuses on these soft skills for those who require it. An excess of available technology has also given Generation Z the ability to multi-task online, which according to the National Academy of Sciences, could not only effect their performance on specific tasks but also learning and cognitive development. When this “skill” is brought into an office setting, it does not always translate well and can sometimes lead to poor work performance and dysfunctional relationships with co-workers. Additionally, Generation Z is more attuned with the “act of parenting” and the security of family than ever before. Currently, this generation has the highest home schooling rates in U.S. history and high rates of one stay-at-home parent. As a result, Generation Z values family, order, structure, work ethic and a sense of predictability in their lives. A sense of comradery and loyalty must be weaved into organizational culture. An emphasis on structure and organization is also important. Providing clear guidelines and hard deadlines will allow Generation Z to flourish. Generation Z wants to be educated and coached, thus fostering employer-employee relationships will be key. Organizations should focus on incorporating training, development and immediate feedback into their workplaces in order to better engage and retain this generation. Employers should offer group meeting spaces that support blended communication methods—both face-to-face and online. Like the Millennials before them, Generation Z is undoubtedly poised to be a solution to the insurance industry’s talent challenge. Provided with the tools and the environment necessary for their success, this generation offers the technological savvy, work ethic and drive necessary to take the industry to the next level.

Taking Action: Developing Succession Plans for an Evolving Future

Having weathered the recent “Great Recession” with its record unemployment rates, company downsizings and mass professional lay-offs, the industry now comes face-to-face with a new challenge. Drastic labor market changes are poised to transform the industry’s leadership landscape during the next 10 years. Already, organizations are beginning to experience an ever-expanding skills gap at the executive and management level—a gap that is only expected to grow in the coming years. Faced with an aging industry, impending retirements and a tightening talent pool, developing and implementing a succession plan is vital to ensuring an organization’s continued success. The loss of human capital has become a serious and timely risk that must be addressed. Unfortunately, many organizations have overlooked this growing risk and now find themselves unprepared and without a plan. In fact, only 38 percent of insurance companies currently have a written CEO succession plan in place. In order to gain insights into the current state of industry succession planning, The Jacobson Group partnered with Carrier Management to develop a comprehensive survey diving into organizational practices surrounding the area of leadership development. The results were surprising and, admittedly, concerning in light of the emerging talent reality. In our latest edition of Compass, Jacobson co-CEO Gregory P. Jacobson explores the responses to this survey and shares insights into the current state of industry succession planning, along with best practices and strategies for developing a successful leadership development plan. For insights on the importance of succession planning along with an update on the insurance industry's talent market, download Compass.

Take Me Out to the Ballgame: Insuring MLB Athletes

The first pitch has been thrown in the 112th World Series. Pitting the Cleveland Indians against the Chicago Cubs, this year’s World Series is poised to make history. Entering into this historic competition, both teams accounted for the longest World Series droughts—totally 174 years. Hometown favorites, the Chicago Cubs, have not seen a World Series win since 1908. Since that time, the United States has seen 18 presidents, two World Wars, 20 economic recessions—including The Great Depression, and the admittance of four states into the union. Recognizing the historic nature of this face-off, ticket sales have skyrocketed to dwarf recent World Series records. Average resale prices to the games have reached $2,474. Already, average asking prices range from $4,000 to $7,200 per seat. As the series moves toward its historic conclusion, let’s take a look at some of the most unique insurance policies taken out by Major League Baseball players. Playing Ball: Recognizing the importance of a healthy body for athletic success, a number of players have taken out insurance policies on specific limbs. Amid the heated home run race of 1998, Mark McGwire took out a $12 million policy on his ankle from Lloyd’s of London. McGwire later went on to beat Sammy Sosa with a record 70 home runs hit in a single season. Yankee pitcher Joba Chamberlain decided to insure his most valuable asset—his right arm—for $5 million. Chamberlain’s policy will pay out if anything keeps him from being able to pitch, including “getting hit by a bus.” Entering Extra Innings: Injuries can put a drastic end to an aspiring career. As a result, many athletes have invested in insurance that will secure their futures in case of possible injuries. Mets ace Matt Harvey recently took out a two-tiered policy that provided a payout for loss of earnings based on a slippage of performance and a different payout if his career came to an early conclusion. Nationals pitcher Max Scherzer has a unique policy providing him with a $40 million payout if he suffered any injury that would prevent him from receiving an offer below a proposed $144 million. Covering Their Bases: While not widely used, a number of franchises have taken out policies on their players. This covers the team in case of player injuries impacting their ability to play out their contracts. Texas Ranger Prince Fielder recently ended his career following his second major neck surgery in three years. Because the Rangers have insurance covering his contract, they will not be on the hook for the entirety of the team’s remaining financial obligations through the end of his contract in 2020. The majority of the costs will be covered by the team’s insurer. Conversely, Red Sox player Pablo Sandoval recently experienced a torn left labrum, requiring season-ending surgery. Because the Red Sox did not insure Sandoval’s five-year, $95 million contract, the team is liable for all of it, including his time spent on the disabled list. As both cities wait with baited breath to see who will break their World Series drought, go out and wow your friends with your knowledge of MLB insurance! Go Cubs!

Revive Your Recruitment and Selection Strategies:  “Who Are You?” Finding the Right Recruitment Fit

This blog entry is part three in Jacobson’s Insurance Recruitment and Selection series, which provides insights into updated recruitment and selection processes and strategies for the modern workplace. So your organization needs to fill an open position? Before you kick start your recruitment process, it is vital that you develop a blueprint for the ideal candidate. Are there specific skills required to be successful in the role? Does your organization have core values that it seeks in all job candidates? Do personality and interpersonal relationships come into play? Understanding the answers to these questions is key in making the right candidate selection. Today, more than three-quarters of all employee turnover is the result of poor hiring decisions. Bad hires are a drain on an organization’s time, resources and energy and can be avoided by developing an effective blueprint for evaluating potential candidates. In today’s rapidly evolving recruitment market, employers must rethink the way they evaluate their potential pool of job candidates. Often, organizations focus on background experience and overlook skills and abilities. For insurers, who face an increasingly shallow talent pool and need to expand their recruitment outside of the industry, this broader assessment will open up a wider range of candidates. While background is certainly important, often a candidate’s skills and abilities will play a larger role in determining if they are a good fit. Technical acumen and interpersonal skills will often be more important than having two years of experience with an insurance company. Organizations should put together a list of necessary skills and characteristics they feel are vital to success in the particular position. It is important to note that industry knowledge can be acquired but not having the core skills and abilities can be difficult to remedy. This targeted list of fundamental characteristics will allow your organization to focus its search and pinpoint candidates who best fit your needs. In addition, thought should be paid to personality characteristics and core values. Organizations may want to consider utilizing behavioral interview tactics, such as providing candidates with a specific on-the-job scenario to role-play, in order to gauge whether their response is in line with your organization’s expectations. Consider bringing in additional team members who would work closely with this individual to see if personalities align. Having a team that can work well together is necessary for success and screening out personalities that are not aligned is essential to developing this dynamic. In today’s fast-paced recruiting environment, identifying the “right” candidate is vital. Developing a strategic blueprint enables your organization to highlight the essential skills, characteristics and experiences that are required to be successful. This recruitment roadmap is key to avoiding the bad hire pitfalls that so many organizations experience.

Compass 9.4: Taking Action – Developing Succession Plans For An Evolving Future

Faced with an aging industry, impending retirements and a tightening talent pool, developing and implementing a succession plan is vital to ensuring an organization's continued success. Jacobson co-CEO Greg Jacobson shares insights into the current state of industry succession planning and best practices and strategies for developing a successful leadership development plan. This edition also includes our regular overview of the industry's current labor market and recent executive-level job changes.

Scary Stuff: Halloween Insurance Claims

It’s that time of year. The days are getting colder, the afternoons are getting darker and soon an assortment of ghouls and goblins will parade down the streets. Beyond the haunts and scares of Halloween, perhaps the spookiest part of the season is the increased vulnerability to insurance claims and lawsuits. According to the National Retail Federation, nearly 157 million Americans plan to celebrate Halloween this year. The heightened popularity of Halloween brings with it an increased risk of property damage and injury. Whether hosting a party or welcoming trick-or-treaters, opening your property to the public can pose a number of unforeseen hazards. Broomsticks and Bumpers: Holiday Driving Debacles Halloween adds a number of spooky hazards to the open road. In fact, Halloween has the highest average number of claims for any day of the year reported with an average of 1,253 claims—an increase of 81 percent. An analysis by the Highway Loss Data Institute found that personal cars are twice as likely to be vandalized on October 31 compared to an average day. In recent years, the high volume of vandalism claims cost the insurance industry an estimated $2.8 million dollars. Auto owners are encouraged to keep cars parked in the garage and out of harm’s way in order to avoid vandalism. However, in the case that your car does get damaged, most comprehensive auto coverage will cover the costs from various forms of vandalism. Beyond the risk of vandalism, car accidents are a common Halloween occurrence and unfortunately most involve alcohol. According to the National Highway Traffic Safety Administration, nearly 50 percent of all crash fatalities on Halloween involved a drunk driver compared to just 31 percent on an average day. As the streets fill with eager trick-or-treaters, the risk of pedestrian accidents are much higher than on an ordinary day. In fact, more than 25 percent of Halloween car accidents involve pedestrians, compared to 14 percent any other day of the year. Drivers are encouraged to be extra cautious and be aware of their surroundings and the increase of foot traffic on the roads. Double, Double, Toil and Trouble? Decorations are an important part in getting into the holiday spirit. While they may play a vital role in setting the mood, decorations can also become an attractive nuisance, or even worse, lead to liability claims under a homeowners’ insurance policy. Carved pumpkins may be a popular decoration choice, but using candles to light up your creations is a major fire hazard. The National Fire Protection Association reports that Halloween decorations result in more than 1,000 home fires each year. In order to minimize risk, insurers recommend making it a flameless Halloween by using battery operated candles. On the Prowl While Halloween is certainly an exciting holiday for goblins, ghouls, ghosts and humans, it can be a very stressful time for dogs. With an influx of visitors dressed in spooky costumes coming and going, even non-aggressive dogs can easily be overtaken by anxiety and provoked to bite guests. In 2013, the Insurance Information Institute reported that more than 30 percent of all liability claims paid out by homeowners’ insurance companies were the result of dog bites. Overall, claims totaled almost $479 million with over 16,000 claims and an average of $29,400 paid out per claim. Pet owners are encouraged to keep their pets indoors and away from frequently used entrances. But don’t be afraid!  Halloween can still be enjoyed in a fun and safe way. Rest assured that whatever tricks Halloween throws at you this year, any resulting damage will be covered by Halloween friendly homeowners’ insurance policies.

The Actuarial Talent Conundrum

The actuarial profession continues to face a period of drastic changes. From market evolutions— including the introduction of more stringent regulations—to talent transformations, including the increased popularity of science, technology, engineering and mathematics (STEM) degrees, these shifts are having a drastic impact on the supply and demand of actuarial professionals. Explosive Growth in the Health Industry Within the health arena, the changes to, and implementation of, the Affordable Care Act (ACA) have resulted in the health industry emerging as a growing area for career opportunities. In fact, the U.S. Bureau of Labor Statistics expects the overall healthcare sector to add nearly five million jobs through 2022, making it the fastest growing service sector nationwide. Within insurance, the projected addition of 20 to 25 million previously uninsured Americans and the increasingly aging population is boosting the demand for actuaries. In fact, healthcare actuaries are predicted to experience an annual growth rate of 4.5 percent—the highest across all insurance segments. Life Industry Rebounds On the life side, the actuarial practice area is also set for robust growth—driven by the aging population. Life expectancy in the United States has increased from 76 years in 2000 to 79 years in 2014, and is expected to remain at 79 years through 2018. Life insurers are turning to their actuarial staffs to assist in managing the policies of this aging population. After experiencing several years of slow or flat growth, life actuarial employment is predicted to grow at a rate of 3.7 percent annually. Property and Casualty Sees Hiring Increase Currently the largest employer of actuaries nationwide, property and casualty insurers anticipate an increase in actuarial employment through 2020. Having hovered at 3.7 percent in the early 2010s, actuarial growth is expected to average 4.0 percent annually in the coming years. The increased focus on predictive analytics and the embracing of disrupters—including usage-based insurance and telematics—is driving this increased focus on actuarial staffing. Amid this growing demand for actuaries, insurers are facing a unique talent conundrum—an excess of entry-level talent and a drastic shortfall of mid-level actuarial professionals. What is driving this talent shift? What can insurers do to successfully manage the talent realities within the actuarial profession? The Entry-Level Excess Today’s entry-level actuarial candidates face a highly competitive market, with many more individuals desiring to enter the profession than there are employment positions available. Despite competition from other potential career paths, the popularity of the actuarial profession has grown drastically in recent years, driven by its reputation for employability and job security. In fact, within the actuarial arena, the unemployment rate continues to hover between zero and one percent. Throughout the past several years, actuarial employment has grown steadily—averaging around 3 percent annually.  By 2022, the employment of actuaries is projected to grow 26 percent. As a result of this positive employment outlook, students have been flocking to actuarial science programs in droves. In the past five years alone, the number of students participating in these programs has grown 11 percent. The number of first-time actuarial exam candidates is increasing 7 percent each year. As a result, nearly 70 percent of graduates seeking actuarial employment will struggle to find a job—with only the top 25 to 30 percent of graduates gaining actuarial employment upon completing their programs. The Mid-Level Crunch Unfortunately for insurers, there is a distinct tightness within the mid-career actuarial market. Insurance organizations struggle to find enough skilled and qualified candidates to fill their available roles. This is a growing concern as the narrowing in the mid-career market has the potential to flow on to create a problem filling senior actuarial positions. The reasons behind this talent shortage are multi-pronged—an exodus of actuaries from the workforce, a shortage in the number of mid-career level professionals and a skillset mismatch. Analysis of workforce demographics highlight a significant drop-off in the number of actuaries in their mid-to late-30s. In addition, a number of actuarial professionals are being swayed by the vast array of highly quantitative—but non-actuarial—positions available outside of the industry. The rise of data-driven business operations has created a wide-range of functions across industries, providing actuaries with a number of new career opportunities. The result is an exodus of actuarial talent that is unlikely to be reversed. In addition, there is a skillset issue at the mid-career level. Employers are looking for actuaries with a balanced toolkit of leadership, managerial and communication skills. Unfortunately, it is continually difficult to find the right mix of these non-quantitative skills.  In order to combat these growing talent challenges, insurers must focus on promoting engagement and retention at the mid-career level, as well as developing their current entry-level employees. Engagement should be focused on promoting career development opportunities in order to cut down on the number of actuaries that are leaving the industry for non-actuarial roles. Organizations should look into providing interesting project opportunities, mapped out promotion paths and cross-department development opportunities in order to retain mid-level actuarial talent. In addition, employers must develop their entry-level actuaries through additional training and rotational experiences that will give them the background and skills sets demanded of mid-level professionals.  Unfortunately, not all organizations have the time to develop their actuarial talent from the recent graduate level. They have mid-level actuarial openings that must be staffed now. In order to address these immediate needs, many insurers are turning to contract subject matter experts. These individuals offer a unique solution to for organizations in need of experienced actuaries. Partnering with a staffing firm—specifically one with an insurance industry focus—will provide organizations with unique access to a bench of highly-skills professionals that can be called upon to provide a stop-gap while a permanent position is filled or offer hands-on expertise for special projects and assignments. Thanks to the growing interest in the flexibility provided through a contract career, these experienced professionals have the knowledge and hands-on work experience to quickly jump in and get started. Is your organization facing a mid-level actuarial talent gap? What strategies are you implementing to combat this?

The Hunt is On: The Great Underwriter Shortage

The search is on for qualified underwriting talent. Amid a growing number of positive labor trends—including low unemployment rates and positive staffing increases—a number of key insurance functions are feeling the pinch. Underwriting positions, in particular, are becoming more and more difficult to fill. As a result, the war for insurance underwriting talent is heating up. Following the recent recession, the industry has undergone a significant rebound. Unemployment rates have dropped, indicating a return to full employment. Unfortunately, in this movement toward being fully staffed, insurers have depleted the potential talent supply. As the supply of incumbent professionals fails to keep up with the growing industry demand, the competition will only become more fierce.  Insurance organizations are now finding it increasingly difficult to recruit for their open underwriting positions—and that difficulty is only predicted to heat up. Insurers must now focus on what is behind this growing shortage and develop strategies to keep their departments fully staffed. Health Care Reform Leads Push for More Health Underwriters According to the Bureau of Labor Statistics (BLS), the health insurance sector is expected to see relatively high stability and growth in the next 5 years. The introduction of health care reform requiring more people to purchase health insurance paired with an aging population is placing more and more demand on the health insurance market. This greater need for health underwriters comes at a time when the Baby Boomer generation is heading into retirement at a vast rate, creating a diminishing pool of specialized underwriting talent. Aging Population Drives Life Underwriting Shortage A significant portion of the workforce—as high as 25 percent—will be nearing retirement age within the next five years; and the life industry is not immune to this mass exodus. According to the most recent Academy of Life Underwriting (ALU) Life Underwriter Census, nearly 50 percent are over the age of 50. The need for life insurance underwriters is also expected to skyrocket in the coming years. As the large Baby Boomer generation ages, it is predicted that more people will be investing in coverage to provide their families with piece of mind. As life insurers turn toward young professionals and Millennials to help fill the talent gap, they are coming face-to-face with a number of recruitment challenges. Unfortunately, the rate of individuals taking advanced professional designation examinations—including ALU exams— is on a downward trend.  Meanwhile, a lackluster industry image is drawing young professionals closer to careers in industries that are more aggressive in their recruitment efforts and are perceived as more attractive or glamorous.  Property and Casualty Faces High Underwriter Turnover Rates The property and casualty industry faces similar issues as organizations place increased emphasis on underwriting to generate profitability. Currently, the growth rate for insurance underwriters is nearly 6 percent—a number that is only expected to increase. Unfortunately, the incoming labor force is not regenerating talent in this sector. Additionally, according to the BLS, the aggregate estimated turnover rate for underwriters is estimated at 15 percent for the next ten years. Combined with historically low unemployment and growing industry demand, the property and casualty insurance industry is beginning to see a significant shortfall of necessary incumbent talent. It is clear, now more than ever, underwriting professionals for each sector are in high demand but undoubtedly low in supply. Education as the Key to Unlocking the Underwriting Talent Puzzle Developing the new generation of underwriting talent—first and foremost—requires industry efforts to raise awareness of the profession. The majority of recent graduates and young professionals are unaware of the ways in which their current educational backgrounds, job experiences and interests can be applied to positions within the insurance industry, including underwriting. Insurance companies need to develop relationships with local education providers, attend onsite recruitment fairs and step up their internship programs in order to educate the next generation. Life and health insurers should consider targeting students and graduates with a background in life and medical sciences, as it can help reduce the learning curve for medical and life underwriting roles. Property and casualty insurers should focus on recruiting individuals with degrees in business, marketing or mathematics.  Education and outreach is the key to informing today’s young professionals about the wide range of unique and exciting job opportunities available within the insurance industry. It is the industry’s responsibility to promote how successful and fulfilling an insurance career can be. Join the growing Insurance Careers Movement, a grassroots effort to build awareness of insurance as a stable, rewarding and limitless career path and help amplify the industry’s message and reach.  Uncovering Interim Solutions to the Underwriting Shortage Unfortunately, not all organizations have the time to develop underwriting talent from the recent graduate level. They have understaffed underwriting teams with open positions or critical projects that need to be addressed by tenured individuals. In order to fill these immediate needs, forward-thinking organizations are turning to contract subject matter experts.  Partnering with a staffing firm, specifically one with an insurance industry focus, is a great solution for bringing on experienced contract underwriters. Niche firms often have unique access to a bench of highly-skilled professionals that can be leveraged to provide a stop-gap while a permanent position is filled or offer hands-on expertise for a special project or assignment. These experienced underwriting professionals have the knowledge and hands-on work experience to jump right in and get started. Partnering with a staffing firm for a contract professional also allows insurers to maintain control over the development and length of the employment contract, while alleviating the time-consuming task of finding and sourcing potential interim professionals. Employing highly-skilled contract subject matter experts, while simultaneously creating awareness of insurance as an industry of choice to build the underwriting talent pool, are just two ways insurers can start replenishing our diminishing supply. How is your organization dealing with the critical skills gap?