Why are insurers finding it difficult to find qualified workers? As with many industries, insurance is facing a workforce shortage. However, a few factors make the problem more pronounced in insurance.
Changes in the workforce: Where have all the insurance workers gone?
The insurance workforce is undergoing seismic shifts. Specifically, insurers face major challenges with recruitment and workforce management.
Figure 3 shows the gap between experienced workers and new workers. The insurance workforce is top-heavy with baby boomers, with approximately 40 percent of them expected to retire within the next decade.
Experienced workers will leave much faster than they can be replaced. Further, without having knowledge transfer strategies in place, insurers will find that their fewer, inexperienced workers don’t have the resources they need to perform at the level of the existing workforce.
Further, consider that entry-level claims salaries are considerably lower than the salaries for other professions (Figure 4).
Ultimately, this creates a supply and demand issue—one that can be solved by redefining and reselling the role of the claims professional. In fact, earlier this year, I talked about ways to attract new blood to the claims industry.