There are numerous articles about why our younger and brighter people in the United States do not want to be insurance company claims adjusters. Most start like this:
The insurance industry has a lot of open positions, and it’s scrambling to fill them. It’s targeting millennials, but many simply don’t consider insurance as a potential career — or think it’s boring. A recent survey from The Hartford showed that just 4 percent of millennials interviewed were interested in insurance is a career.1
Think if you could do anything you wanted to find purpose in your life. Then read and think about the best insurance consulting company, McKinsey and Company, and what it says about a career in insurance claims adjusting for insurance companies:
The technology revolution is reshaping every job in claims organizations. McKinsey research estimates that by 2030 more than half of current claims activities could be replaced by automation: some existing roles will be eliminated, new digital roles will be created, and people in remaining roles will need to handle new responsibilities and build new skills. To keep up with the digital revolution, claims organizations need to prioritize the development of a talent strategy.
However, many claims leaders are not sure where to begin. The COVID-19 pandemic has only further accelerated digitization in insurance, as customers increasingly demand more options for digital interaction. Further, pressure to reduce costs because of continued profitability challenges has overwhelmed their ability to build a future-oriented talent plan. As a result, claims organizations get stuck in a holding pattern.2
If you are a property insurance claims adjuster reading this, you should ask your manager why you should keep doing what you are doing if automation is going to replace you. Why do you work in a company where its consultants look at you as a replaceable piece of machinery? I do not look at property insurance adjusters this way, but the insurance management is not Chip Merlin.
I would suggest that many of our best and brightest have figured out that the management of claims by many property insurance companies is all about the profit rather than the service of helping people get fully and promptly paid. Seriously, can anybody really involved with the study of the claims side of this business truly say that the goal of the claims adjuster as reflected in their pay, promotion and incentives is to fully pay the customer as quickly as possible?
I will give One Hundred Thousand Dollars to an insurance company that has this as its 2021 claims goal and incentive program. I will promote it every day if it simply proves it has this in writing now.
Crickets will be the response. I could make it one million dollars or even ten million dollars. No claims department will agree to this because their overall management does not let them do so. A few internet startups may claim this as their goal for next year and for publicity. They will advertise that they have figured out that the new paradigm and should be delivering what is promised. Why shouldn’t all insurance companies deliver what they promise?
Join me, Will Midtbo, and Beau de Lapouyade for an informative Tuesday at 2. We will go over these issues, and then the five most important issues to consider after a property loss occurs. A brief overview of boat claims will be discussed and then, the resources this blog offers to readers so you are not missing anything.
Please join us this afternoon at 2 EST and here is the link.
Thought For The Day
Computers are magnificent tools for the realization of our dreams, but no machine can replace the human spark of spirit, compassion, love, and understanding.
—Louis V. Gerstner, Jr.