Generational Threat to Insurance

Over the past fifteen years, there has been an ongoing dialogue creating a sense of urgency to the transition coming to the insurance space and we are now feeling it. Adding in the pandemic as well as the other events of 2020 and now 2021, we are seeing the great resignation with turnover rates increasing to 48%, the highest we have seen it! In addition, the great retirement began and will continue as we look to see the ongoing exist of the Baby Boomer generation, with the last of the Baby Boomers turning 65 by 2030.

Not only has it impacted the insurance industry with 400,000+ positions open at the present time; workers’ compensation is feeling the hit. There is an imperative need to pay attention and to educate employers, agents, vendor partners, and insurance professionals on the current state of our industry. We need to address the talent gap, where it is, why it happened, and what comes next. Now it the time to come together and collectively help our industry.

One of the most interesting questions to ask someone when networking at a workers’ compensation event starts by inquiring “How did you get into workers’ compensation?” Everyone has their own unique story of how they landed in the industry and what keeps them here. Seldomly, if ever, does one hear a response of, “Oh! This is what I wanted to be when I grew up.” I wonder if there are any kindergarten teachers who have students who draw a picture of an adjuster in the workers’ compensation space or any of the plethora of opportunities which exist in our space. I know I did not draw a picture of anything workers’ compensation related as a young child… and yet here I am, and I have stayed for 17 years thus far with a long runway ahead. I plan to stay. I love it here!

When we look at the industry from the 20,000-foot view, we cannot be surprised by how the outside world perceives our industry. Last week, I saw messaging on Hulu about the ‘big bad insurance companies being out to get you’ and it is not only on streaming services. These types of advertisements are everywhere. They are on billboards throughout cities across the United States. They play during YouTube videos, are pop-up ads, and can be found in a plethora of other marketing mediums. What kind of information and messaging does this send to the outside world about the state of our industry? There is so much negativity, is it any surprise people do not want to come work in this space?

The messaging articulating the depiction of the workers’ compensation industry puts us at a disadvantage to begin with because this type of content is being seen by people of all ages. It makes attracting, retaining, and developing of newer talent challenging as it almost feels we must dig ourselves out of a hole to even begin getting people to understand the bigger picture.

Psychologically, people want to feel meaning and purpose in the work that they do, feeling a higher sense of contribution to a greater collective. Insurance is a great avenue to do this because the industry was founded upon restoring the livelihood of people! We need to be educating all members within the industry to understand this broadened perspective. Enhancing language we use to effectively adjudicate claims and work with all parties involved in the insurance space can help with the messaging and meaning behind our careers. Take a moment to reflect. When someone asks what you do, how do you respond?

I have been guilty of being inarticulate when explaining my insurance career. When I was an examiner or an adjuster, I used to say, “I handle claims.” It sounded boring yet I knew my purpose was bigger. The impact my decisions and the timing of communication in working with an injured employee could make significant difference on the impact of another human being’s recovery process, getting them back to their LIFE. Even with this understanding, I also fell into the phrase of I’m just an adjuster.

This is quite possibly one of the worst phrases in our space: I’m just an adjuster. To anyone who feels this way, you are IMPERATIVE in the recovery process for an injured employee. You are not just an adjuster… You are a single-handed game-changer who gets to influence the outcomes of someone's most vulnerable, and quite possibly, worst moment of their lives. You not only impact an injured employee, but you also impact their family, friends, and support system. What. You. Do. Matters!! Then why is it so hard to attract people into this space?

If we think about where we are sourcing our talent, many times organizations are stealing from one another rather than looking to grow and develop others within their own organizational programming. We know the companies who have quality training programs and those who do not… so do people exploring the potential of joining our community. Where we have failed and continue to lack focus in the grand scope of sourcing talent. The talent crisis came about because we looked for people who had an insurance background, an interest in risk management, someone who could achieve designations through testing as well as licensing in various jurisdictions. What do we need to do? We need to take a wholistic approach looking at people who have backgrounds in psychology, sociology, counseling, organizational development, leadership, human services, as all these components are reflective of the positions we hold.

Sourcing talent has a greater impact than simply educational background. Where are we looking to recruit talent? What colleges and universities are currently being visited? Are we looking for a more diverse talent pool? The talent and the diversity exist in the youth we have here in America, we simply need to take action to attract by diving into areas we may not commonly visit. We need to find ways to enhance educational programming, starting with the introduction to insurance at a much younger age like the financial world has done by impacting middle school students and high school age students through a variety of opportunities through education. We need to increase inclusion through associations and organizations, encouraging students to come explore and see what opportunities exist.

We also need to increase our mentorship. This has been a hot topic especially over the past couple of years, increasing substantially with the pandemic. Moving into a virtual environment created an opportunity for access to people all over the world. This helps enhance our lenses not only with access but through diverse personal and professional experiences. We all have an active role to play in developing the legacy of the workers’ compensation industry. Who can you bring to any of the tables in which you currently sit? Could you advance someone else’s career by helping them network with your network? When we take the ownership in the development of not only ourselves, but those with whom we work, interact with, create partnerships, friendships, and focus on adding value to the lives of other people, we begin to cultivate a learning organization felt throughout the industry. That is what can help us start to achieve greatness. It starts with each one of us.

Looking at succession planning as well as attracting talent into the workers’ compensation industry can feel like an overbearing task. There are free resources available for you and for organizations to build a plan. If you are interested in helping cultivate change within your organization or even your own team and have no idea where to being, check out The Transitions at thetransitions.org where you can find a plethora of information to build a plan. The Transitions created a 12-part webinar series which has been recorded and can be found on YouTube with PowerPoint presentations and handouts to help you build a transition plan from whatever seat you hold. This can be utilized in the workers’ compensation space, insurance industry, or any organization looking at what to do to begin the knowledge transfer process and effectively build a plan. Start now, start today. The future is here, and it is time to rise. Be the change!!

By Dr. Claire Muselman 

Dr. Claire Muselman is an avid cheerleader for workers’ compensation. She is the Vice President of Workers’ Compensation at North American Risk Services and is a founder of The Transitions.  

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