Claims Magazine ran a story I wrote about the need to align the needs of the insurance industry with those of the growing cohort of workers: millennials.

Transforming talent management

The Wall Street Journal ranks insurance 97th out of 100 industries for its attractiveness to college graduates. The insurance industry is based on an apprenticeship model: a long learning curve, little chance of promotion and siloed job roles. If you consider what millennials are looking for—immediate feedback, highly integrated technology and flat organizational structure—it’s no wonder that insurance isn’t especially alluring.

Transforming talent recruitment

Recruitment in insurance follows a pipeline approach. Large numbers of employees are recruited, with the expectation that there will also be a large degree of attrition. Wouldn’t it make more sense to recruit fewer people, but focus on finding those with the interest and aptitude for the job?

Addressing the talent shortage

  • Communicate better, with potential recruits and current employees. Insurers may need to adopt new channels, such as social media and mobile channels, and use new messaging. For example, millennials respond strongly to opportunities to cross-train within a company.
  • Rethink recruiting by working with universities to develop actuarial and underwriting capabilities for undergraduate students. Similarly, as insurers would apply customer segmentation strategies, they can also apply recruiting segmentation strategies.
  • Reposition claims within the company. Many potential recruits are attracted to revenue-producing parts of the business, such as sales and underwriting. By highlighting the value of claims to reduce expenses, improve customer service and create real competitive differentiation, insurers can attract a new cohort of claims professionals.

That’s just the tip of the iceberg. Next week, I’ll discuss more ways that insurers can address the talent shortage.

Learn more in “The Millennial Invasion,” published in Claims Magazine.

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