How insurers can address the Great Resignation and talent challenge

The effects of the Great Resignation, exacerbated by lifted pandemic restrictions, continue to impact the insurance industry at large. Nearly 57 million Americans quit their jobs between January 2021 and February 2022 across all industries – and the insurance and insurtech spaces certainly were no exceptions. Challenges such as inflation and shifts in employee expectations have created additional pressure for employers already struggling to attract talent and reduce turnover. 

As experienced insurance professionals continue to leave their jobs – or the workforce entirely – insurers are learning to adjust in their hiring practices and re-evaluating methods of retention through shifts in employee engagement, company culture and digital transformations.

Company culture and employee engagement
According to Kelly Maheu, vice president of industry solutions for Vertafore, an increased focus on company culture and values is vital to talent retention. 

“What we see in the most successful companies – whether it’s carriers, whether it’s insurtech like Vertafore, whether it’s agencies –we’ve begun to see an evolved value proposition,” Maheu states. “It’s an evolved culture coupled with innovation, and that’s really going to appeal to an increasingly digitally-native and diverse workforce.”

Maheu also notes that companies should pay attention to generational differences that shift employee expectations and mindsets. 

She explains that younger generations entering the workforce “will not hesitate to go somewhere else if the work experience does not reflect that and is not in line with that. We know flexibility is key. Flexible work arrangements will allow for a more diverse candidate pool, and this willingness to be more flexible opens the insurance industry up to further innovation to get the right people – the best and the brightest – into these roles, because it’s not limited by geography or time in the office or particular hours.”

A focus on company culture also starts with increased employee engagement, according to Loralie Thostenson, senior vice president, technology talent officer at Liberty Mutual. Thostenson says that employers can really benefit from being open to receiving and utilizing employee feedback, when used in a meaningful and impactful way. 

“One of the things we’ve prided ourselves on at Liberty Mutual…is that one of our values is putting people first,” explains Thostenson. “Part of that is listening to our employees, understanding what’s important to them, making the connection for them [on] how their work is meaningful, not just to the financial goals of the company, but also the vision and the role that we play in helping people feel secure.”

Digital transformations
Introducing digital that simplifies or accelerates processes may also be key to overall talent retention – especially for attracting top tier tech talent. Introducing new technologies and providing proper, ongoing training may eliminate minor frustrations and allow employees to contribute their skills in other ways. 

“Instead of spending a lot of time on routine and repetitive work, advanced analytics and automation, we enable insurance professionals to tackle more complex projects,” explains Shavel. “It allows insurers to make better use of their talent, and it provides employees with a more rewarding work experience. The digital transformation in the industry is a great opportunity to attract young talent that grew up with technology and retain experienced professionals looking for work where they can use their deep knowledge and expertise.” 

Maheu agrees that technology is crucial to the success of insurance organizations, and also plays a role in the customers’ experience – which ultimately affects the employees. Maheu notes that the pandemic especially “accelerated insurers’ efforts to digitize to meet evolving customer needs –  many of the interactions [were] moving customers into digital channels and continuing to look for ways to drive innovation to enhance the user experience,” she says. “Overall, this is a positive outcome that demonstrates the potential of the industry for digitization. It’s exposed some gaps, as well, in digital capabilities, and we still have a long way to go to meet customers where they are. Any organization that’s going to attract and retain the best talent is going to have to keep innovating and shifting to meet those customer preferences and needs.”

Digitizing and streamlining insurance processes may also drive down costs, reducing the effects of inflation and of rising claims costs. 

“There’s no question that inflation is top of mind for insurers. With the cost of claims rising significantly, with potential impact on rates or growth… We’re working diligently to help insurers leverage technology to increase efficiency, make more refined underwriting and claims decisions, and improve the customer experience,” writes Shavel. “Integrating advanced analytics based on robust, high-quality data can help insurers weather the storm…”

Address fears of automation
However, there also exists a fear that automation is more a cause of concern rather than a solution. Some are concerned that digitizing more insurance processes will render many jobs obsolete and may result in mass unemployment, and others fear that the overreliance on technology will undermine the customer’s experience. 

Shavel writes, “Automation holds great promise for both insurance professionals and policyholders. For policyholders, automation and robust analytics are making the process of applying for insurance easier than ever before. In many cases, a consumer can just answer a few basic questions, such as name and address, and then see their lengthy application prefilled with verified data. The result is a simpler and faster buying process… From the car to the ATM, the advent of new technologies and automation have always created a certain level of apprehension, but each technology has created new careers and opportunities. History tells us the same is true for the technologies that are just beginning to reshape and sharpen our industry.”

Maheu agrees; despite the fear of losing jobs from automation, she says that the goal of Vertafore is “to simplify and automate the insurance process, the life cycle, so that people can focus on what matters most and do the jobs that only people can do effectively…. [automation] is actually opening up more opportunities for different types of roles and freeing up more time and brain space.”

DEI efforts
Introducing diversity, equity, and inclusion initiatives is another way to enrich company cultures and values. Research from the 2022 Agency Growth Study by Liberty Mutual and Safeco Insurance shows that “80% of agencies with over seven staff members are currently or believe they should be engaging in DEI activities.” DEI efforts not only facilitate a healthier and more inclusive work environment, and embrace the unique perspectives and differences of each employee, but implementing such values in the workplace can help draw in a more diverse group of applicants and talent. 

Verisk CEO, Lee Shavel, writes in an email interview with Digital Insurance that “a concerted and sustained focus on fostering diverse and inclusive cultures within the companies that make up the industry offers an incredible source for talent that can help the industry innovate and grow. At Verisk, we have seen this as an opportunity to embark on a more defined [DEI] strategy backed by data insights. We have strategically partnered with new organizations and expanded our college and university partnerships, offering access to more diverse talent pools.”

Responses from insurers
Some insurance companies are introducing new programs or initiatives to combat the talent shortage. GEICO, for example, has been increasing salaries for certain positions throughout the last year and recently announced that its Marlton, New Jersey office is actively hiring for claims and personal injury protection adjusters. The office also added a new hybrid work schedule for employees to add flexibility and a healthy work-life balance for its associates. Last year, GEICO also added the GEICO Strive benefit, which offers associates pre-paid tuition for over 200 schools, as well as career-oriented and educational guidance. 

Thostenson notes that at Liberty Mutual, emphasizing customer feedback and communication has helped reduce turnover to a pre-pandemic level. She says that “making sure that our employees understand how they can grow a career here, what the upscaling and rescaling options are certainly is really important to that. We have a monthly survey where we ask for their input on what’s going on, and what we could be doing differently.”

Introducing new employee benefits, which derived from employees’ ideas, has also contributed to keeping talent at Liberty Mutual. “We’ve built out our benefits program over the course of the last couple of years. We’ve added benefits like childcare … a number of different benefits related to wellness, mental health, and support,” Thostenson explains.