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The Human Element of AI Transformation

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

Download the white paper to explore best practices for taking a human-focused approach as you lead through change.

Recruiter Report: Find the “Perfect” Candidate

Finding top talent remains difficult in today’s labor market. However, holding out for the “perfect” candidate may mean losing out on high-potential individuals that would thrive in the role.

Read our blog post gain insights on redefining what the ideal candidate looks like and share how to take a realistic and future-focused approach to making the right hire.

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Compass 8.3: Today’S Business Mandate: The Search For Authentic Leadership

The difficult economic climate of the last decade has created a feeling of distrust in organizational leaders. Today's employees are looking for a new kind of business leader to take the helm. Jacobson shares insights on the positive impact authentic leadership is having on organizational productivity and success. This edition also includes our regular overview of the industry's current labor market and recent executive-level job changes.

Keep Your Employees Engaged as the Temperature Heats Up

The dog days of summer are here and with them come ice cream socials, trips to the beach, softball games, and backyard barbeques. As the weather heats up, many organizations are seeing their employee engagement drop. According to Captivate Network, the “lazy days of summer” often have a significantly negative impact on the workforce. Organizations report a 20 percent drop in productivity and a 15 percent increase in project turnaround times. In addition, there is an uptick in distracted workers by 45 percent and a drop in attendance by nearly 19 percent. How can your organization beat the summer slump? How can you boost employee engagement in the summer months? Participate in volunteer activities: We already know that volunteerism and corporate citizenship can play an important role in increasing employee engagement. With the summer months making it more difficult for employees to be truly engaged at work, participating in a charity event or volunteer program is the perfect solution. In fact, summer is a great time to take advantage of the weather and give back to the local community. By enabling employees to get out of the office for a day, volunteer activities are a great way to boost morale, re-energize staff, spark productivity and increase workplace engagement. Offer increased flexibility: Summer is the perfect time to embrace work/life balance. Providing even a minor adjustment to work hours can go a long way toward increasing morale. Consider introducing an option to come in later or leave early a few days a week. Let employees kick off the weekend sooner with summer Friday hours. Here at Jacobson, we have implemented a summer Friday program where staff is allowed to leave the office two hours early on one Friday a month in order to enjoy the season. Plan a summer outing: While having an “out-of-office day” may sound counter-intuitive, when trying to increase workplace productivity, it has actually been proven to work wonders for organizational energy—both short- and long-term. A fun event can give employees the opportunity to get to know each other and boost their levels of camaraderie and communication. Look into planning fun activities such as a trip to the ballpark or even a biweekly happy hour. For years, Jacobson has offered employees the chance to participate in a summer outing and has seen a positive impact on employee engagement. Recent trips for Jacobson have included a day at a horse-racing track and a cruise on Lake Michigan. Enjoy a change of scenery: Sitting in the office day-in and day-out can start to wear on any professional. Especially when the thermostat hits 75 degrees and the sun is shining bright. Take advantage of the great weather and provide employees with a change of scenery. Have a team lunch at a local park, reschedule a meeting for the outdoor patio or take a trip down to the local farmer’s market. Getting outside and enjoying the nice weather is a great way to rejuvenate and refocus. Set summer goals: Don’t let the summer months turn into your slow season. Set specific goals for those three to four months to encourage and motivate employees to be more productive. Pinpoint a few key areas you want to work on and create fun challenges and rewards for accomplishing each task. Make sure to align your goals and projects with the overall organizational mission. Employee engagement spikes when individuals understand how their contributions affect the big picture. Summer doesn’t have to be a bust for your organization. Work on providing fun and engaging activities to keep your employees motivated. With a focus on increasing employee engagement, your organization is sure to see a boost in its summertime productivity. What activities are your organization doing to keep employees engaged this summer?

Where have all the underwriters gone?

Insurers are having a difficult time finding and recruiting underwriting talent. But what exactly is to blame for this growing talent shortage?  Insurance underwriting unemployment is nearly four times lower than the national rate and nearly half the overall insurance rate. With virtually non-existent unemployment, the pool of potential talent is tightening, making it more and more difficult to find and recruit underwriters.    In addition, demand for this highly specialized professional is already high and expected to only increase drastically in the coming years. Experts are predicting that the demand for underwriters will grow at a rate of 6.3 percent during the next 10 years.   Add in an aging workforce, impending industry retirements and a turnover rate of 15 percent, and insurance organizations are faced with a severe underwriting talent gap. 

Can Work-At-Home Benefit Your Organization?

The work-at-home movement is taking off within the business world. Already, it is estimated that 30 million professionals in the U.S. are working from home at least once a week. According to a study by the Telework Research Network, that number is expected to increase by 63 percent in the next five years. While The Jacobson Group has had a few employees working from home for over a decade, we just officially launched a companywide telecommuting program.   Jacobson has come face to face with some immediate growing pains after expanding far beyond what we originally anticipated when we signed the lease for our new Chicago headquarters a few years ago. While this is a good problem to have, the reality is that we are running out of desks for all of our exceptional employees and are implementing a work-at-home policy for qualified staff.   So what are the organizational advantages of introducing a telecommuting program within your organization? Here are four ways work-at-home can benefit your company:  Growth in employee morale: From the grinding commute to the struggle for work life balance, a number of challenges are affecting employee engagement. With a Gallup survey reporting that 63 percent of American workers are unhappy with their jobs and 24 percent actively hate their jobs, increasing employee happiness is a critical issue for many employers. Fortunately, the opportunity for telecommuting—whether full-time or just a few days a week—has shown to reduce stress and provide a tremendous boost in employee morale. In fact, employees that are given the option to work-from-home are 73 percent happier with their employers. That morale boost often results in employees becoming more invested in the companies they work for! Improved recruitment capabilities: Flexible work options top the list of requirements for many job seekers. For Millennials, in particular, having a flexible workplace is a highly sought after job perk. Professionals who have experienced telecommuting programs are more likely to seek out these work arrangements in their next opportunity. Having a work-at-home program allows your organization to better position itself among today’s candidate pool. In addition, telecommuting allows organizations to choose from a much larger talent pool, as they are able to look outside of their current city and recruit talent regardless of physical location. Higher employee productivity: Contrary to popular belief, employees actually increase their productivity when they are allowed to work from home. According to a study from the University of Texas, telecommuters worked 5-7 hours more than their in-office counterparts. Both employees and supervisors report that they are more effective at home, where they are away from common interruptions and distractions. For positions that require some face-to-face time, instituting a work-at-home policy with days split between home and the office allows the organization to reap the same productivity benefits while enabling staff to maintain professional and social relationships with their co-workers. Increased cost-efficiency: Organizations are poised to save big money when implementing a telecommuting program. With telephone routing capabilities, VPN networks and cloud computing, the cost of starting a work-at-home program is minimal. It is estimated that a company can save $11,000 a year for each employee who works at home. Organizations have even reported up to 30 percent reductions in overhead after instituting a telecommuting program. With office space ranking high on the list of top business expenses, being able to cut back on the space and furnishings required for in-office staff is an immense cost savings for organizations utilizing telecommuting. Recognizing the numerous benefits that result from work-at-home programs, many organizations are instituting their own practices. Whether your company is looking to save costs or increase morale, a telecommuting program may be a great solution.   Have you instituted a work-at-home program? What benefits are you seeing from this initiative? 

The Regulatory Revolution: Five Emerging Trends Impacting the Insurance Industry

Regulatory bodies, both within the U.S. and internationally, have turned their focus toward expanding their oversight and enforcement activities. With this trend only expected to accelerate, the increase in regulatory changes is creating an industry-wide ripple effect that is expected to impact the majority of insurers.  Already, the industry is predicting a number of new rules and modified requirements that could significantly affect how insurers operate. In order to succeed in this evolving environment, organizations need to stay on top of impending changes and their potential impact, lest they find themselves scurrying to achieve compliance at the eleventh hour.  So what are some of the top regulatory mandates and compliance challenges to be on the lookout for in 2015 and beyond?  The growth of cyber security risks: With the recent hacks of Anthem, Target and even Sony Pictures, cybercrime is a hot topic. Unfortunately, insurance companies have become an increasingly attractive target for hackers and cyber thieves. According to Deloitte, the expansion toward a mobile and Web presence has opened the industry up to cyber thieves looking to steal valuable customer data. Recognizing the growing risks and understanding the general industry unpreparedness, insurers are working to ramp up their defenses. Already, regulators are raising the bar on cyber security, with the National Association of Insurance Commissioners (NAIC), establishing a Cyber Security Task Force. Moving forward, the industry can expect to see increases in IT and data security investments, as well as a growing focus on data risk assessments. The implementation of the Own Risk and Solvency Assessment (ORSA): Developed by the NAIC, the ORSA model went into effect on January 1, 2015. Under this new regulation, certain U.S. insurers are now required to undertake an annual confidential internal assessment. This assessment looks at the risks associated with their current business plans and the sufficiency of their capital to support these risks. Not all insurance companies are affected by the ORSA requirements. However, due to ORSA, the industry as a whole is placing greater emphasis on analyzing the adequacy of their current risk management framework and proactively addressing any weak points. A growing push to streamline regulatory standards globally: In today’s increasingly global business environment, the U.S. insurance industry faces growing pressure to adopt international regulatory standards. With international standards having been accepted by more than 120 countries, the International Association of Insurance Supervisors (IAIS) is pushing for the current regulatory framework to become a global reality. For Global Systematically Important Insurers (G-SIIs), changes are already being put into effect with the impact expected to include enhanced supervision, new financial reporting requirements and increased scrutiny. While a complete acceptance of international standards has not been embraced by the entirety of the U.S. industry, insurers may want to review how their current processes may be updated to better align with the global standards. Increased industry regulation at both the state and federal level: Historically relegated to individuals states, a new model of insurance industry regulation is emerging, blending together state and federal oversight. While the newly introduced Federal Insurance Office (FIO) is responsible for monitoring the industry, it does not have formal regulatory authority. The industry currently faces an uncertain regulatory environment as the exact roles of the state and federal agencies—including the FIO, the Financial Stability Oversight Council (FSOC), the International Monetary Fund and the Federal Reserve—are still being determined. As a result of this uncertainty, insurers are seeing increased regulatory expectations and growing demands for compliance. An industry-wide shift toward principle-based reserving (PBR): The industry remains divided over the best way to calculate reserve requirements for life insurance. Many feel that the traditional, formula-based approach is outdated and is therefore creating excessively high reserve requirements. In response, they propose a shift toward a principle-based approach that is considered more reasonable and fair. Fortunately for those who support PBR, the NAIC agrees and has approved this shift. However, a complete transition to PBR requires approval from a supermajority of states, representing 75 percent of the life premium. While the implementation of PBR remains in the distant future, insurers may want to start considering the impacts of PBR approval. In order to get a jump-start on the competition and ensure their future success, organizations should focus on creating capital plans and developing new life insurance products to capitalize on modified reserve requirements. The landscape of insurance regulation is changing and 2015 is poised to be a pivotal year. Organizations who want to be prepared for any impending shifts are taking a look inward and examining how their current risk and compliance processes may be updated to fit within an evolving environment. This increased adaptability may be the key to success in the future.  What is your organization doing to prepare for future regulatory updates?

How Big Data and Analytics are Changing the Way Insurers Do Business

It is my pleasure to introduce a guest blogger for this latest post. Steve Lessaris is a Client Development Manager with our Professional Insurance Recruiting practice. Steve recently attended the 2nd Annual Analytics for Insurance USA Conference and gathered some insights that are definitely worth a read. Enjoy…  The recent advances in analytics and big data have revolutionized the business world, changing the way we play sports, shop for goods and track information. For insurers, analytics has transformed business practices and even introduced new job functions. Already, 2015 has been dubbed the year of technology-driven transformation within the industry.  Originally embraced by certain segments of the industry, analytics is now permeating across all areas, including sales, marketing and customer service. Recent research has shown that more than one-third of insurers are investing in predictive analytics. The result is significant improvements in processes and new products that deliver value and efficiency to customers.  But how exactly are the changes in analytics and technology influencing the insurance industry? We’re spotlighting four areas where advances in analytics are changing the way insurers do business:  Managing Risk: Past generations of insurance agents were directly connected with their customers; they knew their communities and the risks involved with providing insurance to local individuals and companies. However, a move toward decentralized agencies and an uptick in online applications has affected agents’ abilities to assess risk. With analytics providing access to a myriad of data, agents are able to build statistical models to better understand and quantify risk. For example, carriers are now able to pull demographic data, credit activity, ‘business climate’ scores—including ROI, failure rate and tax data— to determine which companies are higher risk. Determining Pricing and Upselling: With analytics, organizations are able to track the performance of applications throughout the quote process and identify patterns in price preference and coverage type. Combined with social media activity, past account information and website click data, insurers can provide tailored options and suggest additional products that meet the needs and budgets of consumers. Personalizing Products: Creating models to review customer habits based on collected data, including demographics, health background and account information is helping insurance organizations adapt products and premiums to the individual customer. As a result, they are able to offer customers highly personalized policies at a competitive premium. An example of this is Progressive’s Snapshot® program and Allstate’s Drivewise®. Utilizing a sensor located in the car, the insurer is able to record average miles driven, typical time of day for driving, average speed and how sharply the driver is braking. This data is then used to determine the best rate for the individual based on their habits and history. Detecting Fraud: New analytical processes including pattern analysis, social media insight gathering and database monitoring are assisting insurers with detecting and predicting fraud. This collection of behavioral data is being used to create new models that can identify patterns and pinpoint both normal and suspect behavior. For example, companies are now harnessing data analytics to assist in combating garaging fraud—paying a premium based on a residence that is not accurate. Insurers are able to connect vehicle plate databases, which utilize License Place Recognition (LPR) cameras and policy information to determine if drivers are actually parking their car where they say they are, and adjust their premiums accordingly.  Analytics is impacting all areas and functions within the insurance industry. However, as with all technology, change is happening at a breakneck pace. In order to truly embrace the potential that analytics and big data hold, insurers must embrace the newest advances with creativity and confidence.  What do you see on the horizon for analytics in the insurance industry?

Is Your Talent Brand up to the Job?

Do you know how your organization is perceived outside of the office? Do potential candidates view your organizations as a great place to work?  As Catherine Prete, Jacobson’s senior vice preside of operations, discussed in our latest edition of Compass, your talent brand can play an important role in attracting and retaining professionals. In fact, 83 percent of global recruiting leaders report that a strong reputation is a critical driver behind hiring top employees.  Often described as “the people’s voice,” your talent brand is your public image. It encompasses not only your company culture, but also the feelings, impressions and perceptions your employees and stakeholders have about your organization. It also includes the social presence that you promote, via external websites, job boards, social networks and more.   With today’s talent market becoming more and more challenging, having a strong, positive public persona may be the key in successfully fulfilling your talent needs. In fact, a strong talent brand has been known to enhance an organization’s reputation and name recognition, cut down on human resource costs, and assist in recruiting high-quality candidates.  Despite all the benefits provided by a positive company image, a number of organizations are failing to strategically build and foster their external reputations. If your company is missing a talent brand strategy, now is the time to start developing one.  There are a number of key questions that can provide a baseline to get started. Consider what your employees think of your organization. Do job candidates have a positive perception of your company? What values does your organization hold and how well are they upheld? The responses will give you insights on where you need to focus your branding efforts and what promotional activities need to be undertaken.  If you would like to learn more about talent branding and the strategies and best practices for successfully promoting your unique employer image, download Compass.

The Growing Cyber Threat

Cyber is everywhere, even earning its own CSI spin off on TV! With the well-publicized cyber attacks and data breaches at Target, NATO, JPMorgan Chase, and Anthem, cyber security and losses associated with cyber crimes are a growing concern throughout the business world. While the total number of data breaches and record exposures often fluctuates year to year, organizations are seeing a continued upward trend. According to the Identity Theft Resource Center, the number of U.S. data breaches tracked in 2014 hit a record high. The center has been tracking these events since 2005. The reported 783 breaches in 2014 represents an increase of 27.5 percent over the 614 reported in 2013 and an increase of 18.3 percent over the previous milestone of 662 breaches tracked in 2010. In addition, the number of data breach incidents hit a high of 5,029 reported incidents, involving more than 675 million estimated records. Cyber risk has now moved into the top three global business risks, according to the fourth annual Allianz Risk Barometer Survey. This is a significant jump from its eighth place ranking and 15th place ranking in 2014 and 2013, respectively. It is clear that cyber is becoming a critical threat to both governments—faced with a potential for undermined national security—and businesses—struggling to store confidential customer and client information online. Unfortunately, traditional insurance policies have not typically covered the emerging cyber risks. As a result, specialized cyber insurance policies have been developed to support and protect businesses and individuals. A joint survey from Advisen and Zurich recently found that 52 percent of companies are claiming to have purchased cyber liability insurance. With an ever-evolving range of risks, the selection of cyber risk coverage options is expanding as insurers work to keep ahead of the game. Some interesting options that have emerged as a result of the growing focus on cyber risk include the following: Loss/Corruption of Data: Focused more on protecting the actual data, loss or corruption insurance often covers the damage to, or destruction of information assets, due to viruses and malicious code. Business Interruption: When an attack on a company’s network limits its ability to conduct business, business interruption insurance covers the loss of income, as well as extra costs including forensic expenses. Liability: Cyber risk liability insurance covers the legal costs incurred and, sometimes even the punitive damages, resulting from data theft, virus transmission and security failures. Cyber Extortion: This newly introduced coverage option focuses on the “settlement” of extortion threats against a company’s network, as well as the cost of hiring a security firm to handle blackmailers. Crisis Management: Managing and rebuilding one’s organization following a cyber incident can be extremely costly. Crisis management covers the cost of notifying consumers of the breach, providing remediation services and retaining public relations assistance to help with the potential fallout. Criminal Rewards: This insurance policy covers the cost of posting a reward for information leading to the arrest and conviction of a cyber criminal involved in attacking company computers or networks. Cyber risk is evolving at a rapid pace. Today’s insurance organizations are working hard to evolve with it. Already, focus is on the latest round of emerging risks, including the growing use of cloud services, the use of personal devices for business, and the emergence of social media and the resulting potential for online slander. Only time will tell what the future holds in the realm of cyber risk coverage. What do you predict will be the next major trend in cyber risk insurance?

Compass 8.2: Building Your Talent Brand: Ensuring Success In Today’S Talent Market

In today's challenging labor market, having a positive public persona plays a key role in successfully attracting and engaging both current and potential employees. However, despite recognizing its importance, a number of organizations are failing to take a strategic approach to building and cultivating their images. How can organizations ensure their brand resonates with top talent? We share insights and strategies to build and maintain an employer brand that wins the war for talent. This edition also includes our regular overview of the industry's current labor market and recent executive-level job changes.

Countdown to ICD-10: Get your Training Program on Track

It is my pleasure to introduce a guest blogger for this latest post. Abbe Sodikoff is a senior vice president and health sales manager here at Jacobson, providing leadership to our subject matter experts health services team. Her insights into ICD-10 preparation are worth a read. Enjoy… The official compliance date for ICD-10 has been delayed another year until October 1st, 2015. Despite the extended deadline, many health plans remain concerned about their readiness. According to a study, more than half of healthcare providers and health plans have completed only 25 percent or less of the necessary implementation. The implementation of ICD-10 will affect all aspects across the health system from clinical documentation and business processes to claims and care utilization management. As such, it is critical that everyone working at these health plans, from the chief executives to the coders, is aware of, and familiar with, the new coding standards. Education and training are key aspects of any successful implementation plan. If you haven’t done so already, now is the time to review the needs of your organization and create a training strategy to ensure that everyone is on board.As you prepare your ICD-10 training program, here are some helpful tips to keep in mind. Treat ICD-10 training like you would treat any other training within your organization. Take time to develop a comprehensive project management plan and make sure to utilize the expertise of your training coordinators – or to contract one if you don’t have the necessary expertise on staff. Determine a process for providing specific and relevant information to each individual team within your organization. For example, tailor your training to discuss ICD-10 changes to billing when you are training your billing staff. Remember that everyone learns differently and at a different pace. Utilize a mix of eLearning courses and instructor-led sessions in your training.  Keep in mind that 65% of professionals are visual learners and incorporate visual clues and materials into your education materials. Here at Jacobson, we are staying abreast of all ICD-10 updates and news in order to provide effective support to our clients as needed. In addition, we are encouraging our clients to assess their strengths and limitations regarding ICD-10 compliance and education, and to start an honest internal dialogue about the potential needs they may have during this transition. What is your organization doing to prepare for ICD-10?

What does the crystal ball predict for staffing in 2015?

A number of trending talent issues are sure to impact the insurance industry in 2015. From the growing focus on building a personalized talent brand to the rise in demand for tech talent, the industry is being shaped by a number of emerging trends. Here are seven trends we expect to influence the insurance industry in 2015. Emerging Talent: As the industry faces a growing talent crisis, organizations are turning to young professionals and recent graduates to fill the gap. Talent Branding: In today’s competitive recruitment climate, building an attractive, positive brand is key to success.  Tech Talent: The demand for analytics and big data talent is causing insurers to rethink their hiring plans in order to better attract tech talent.  Increased Industry Turnover: Companies must revisit their employee engagement strategies to combat the growing number of voluntary separations.  Growth of Non-Traditional Employment: The rise in temporary employees is creating a unique solution to employers search for cost-efficient term staffing. Technology Impacting Required Job Skills: The growing focus on technology is creating a demand for a new skillset among today’s job candidates. Climate Risk: Increased demand for claims and underwriting professionals is causing insurance organizations to rethink their current disaster or natural event staffing strategies. Want to learn more about the top talent trends for 2015? Download our full guide for an inside look.

Insurance Industry Continues Positive Growth Trend

The results from our latest Semi-Annual U.S. Insurance Labor Outlook Study are now in! The survey expectations are overwhelmingly positive for staffing and revenue growth. Compared to the July 2014 survey, the rate of expected hiring jumped to 66 percent—the highest percentage since the survey began in 2009. Nearly one-third of all companies are planning to increase their staff by at least 2 percent in the coming year. Primary drivers for this growth in staffing are the anticipated increase in business volume and the expansion of business into new markets. The post-recession recovery continues to effect staffing expectations as more than 40 percent of organizations reported that they would be hiring to fill areas currently understaffed. Revenue growth expectations remain high, with 84 percent of surveyed organizations expecting an increase in revenue growth in 2015. This is the fourth highest level since the survey began, however it marks a slight decrease from the expectations reported in July 2014. An increase in market share and changes in pricing are driving the expected revenue increase within the industry. Despite this positive outlook, insurers face an increasingly challenging labor market as the demand for talent continues to far surpass the current supply. Since its low in April 2011, the industry has seen a growth of more than 60,200 new jobs. In January 2015, staffing in insurance reached 1,481,000—the highest the industry has seen since July 2004. Add in 236,000 job openings within insurance and it is clear that the labor market is in the midst of a drastic tightening. In addition, the unemployment rate remains low. According to the BLS, the January 2015 unemployment rate for the insurance industry was 2.3 percent, a much lower rate than the 5.7 percent reported for the national economy. While the insurance industry is enjoying a period of relative stability, the low unemployment rate is lending to the current talent crunch. Already companies are reporting a difficult recruiting climate. It is expected that the current labor market will become more and more challenging as the available talent pool continues to be effected by industry retirements and a lack of incumbent talent. Actuarial, technology and executive positions continue to top the list of job functions that are the most difficult to fill. This correlates to the growing focus on technology and analytics within the industry and its increased integration throughout insurance. In fact, technology has had the greatest likelihood of increasing staff in 11 of the past 12 surveys for property and casualty companies. To combat the growing talent shortage and meet the growing industry needs, insurance organizations are focused on building their talent pipelines and engaging their current employees. Many insurers are turning toward the incoming wave of Millennial professionals to provide a solution to their talent needs. With Millennials making up an estimated 25 percent of the workforce they present a unique opportunity for the industry to bring in fresh talent. Engaging and recruiting these bright, young professionals may be the key to successfully weathering the growing talent storm. While things are certainly looking up within the insurance industry, the positive outlook must not be allowed to overshadow the growing challenges in recruiting for key industry positions. Organizations must begin preparing now lest they find themselves unable to meet their growing needs. The key is to think ahead and begin building a bench of emerging insurance talent. Download the full results from the survey.