Editor's note: Daniel Kerr is CEOat AdjusterPro and may be reached at [email protected].

The claims adjusting industry faces a challenge or, morepositively framed, a great opportunity.

On the one hand, we find in our nation's veterans abattle-tested young workforce that is highly skilled, tech-savvy,and grossly underemployed. They're looking for work, and unlikesome Millennials, they don't need yoga sessions or a juice-bar inthe break room in order to feel validated.

Now on the other hand, we have an industry that is neardesperate for an infusion of young talent but is also struggling toreach a demographic from which it feels somewhat disconnected. Thefit seems tailor made, but how do we successfully bring the partiestogether?

Veterans Looking for Work

Two months ago, Zach Mason was one of 211,000 Iraq andAfghanistan war veterans who were jobless. Zach was nine monthsremoved from a two-year stint in Afghanistan, where he served as amilitary combat engineer. He possessed excellent technical skills,was physically fit, had a great attitude, and wasn't afraid of hardwork. He bounced around between some college classes, bartendingand selling cars but quickly realized these were short-termsolutions with a young family to support.

Then in August of this year, someone introduced Zach to theworld of independent claims adjusting. He felt the work was aperfect fit, given his military experience and the fact that hecould be up and running quickly. Within a few short months, Zachwas assisting with Superstorm Sandy reinspections for a majorindependent adjusting firm in New York. Zach describes his new lineof work as “a job he can be proud of.”

Zach was fortunate to have a cousin who initially turned him onto a little known opportunity in insurance claims adjusting. Butmany veterans—more than 1 million according to the Bureau of LaborStatistics—haven't yet found a full-time fit in the civilian worldand remain unemployed.

Meanwhile, the claims industry soldiers on, grappling with thechallenge of attracting young, competent talent to join its ownranks. Numerous articles appearing on PropertyCasualty360.comlament the shortage of industry entrants. In one of those articles,Laura Mazzuca Toops ­portrays the grim realities:

The report found three primary reasons why insurance can'tattract talent: poor reputation, limited understanding among highschool and college students of the industry's career opportunities,and a limited pool of trained talent.

Moreover, while organizations like the Griffith Foundation andThe Institutes have made excellent strides since then to addressthese issues, the fact remains that insurance carriers, third-partyadministrators (TPAs) and independent adjusting firms finding itquite difficult to find skilled workers who are ready to fill thevoid left by an increasingly aging workforce.

A Viable Solution?

Could young veterans be the future superstars of claims? Anarticle published last year by The Institute for Veterans andMilitary Families and the University of Syracuse made a compelling,data-driven case for hiring military personnel. The commentary wentbeyond mere sentiments of patriotism, concluding:

Academic research from the fields of business, psychology,sociology, and decision-making strongly links characteristic thatare generally representative of military veterans to enhancedperformance and organizational advantage in the context of acompetitive and dynamic business environment. In other words, theacademic research supports a robust, specific, and compellingbusiness case for hiring individuals with military background andexperience.

That particular article goes on to list ten specific areas inwhich veterans show heightened aptitudes that translate intoeffectiveness in the workplace. These include a high need forachievement, a high level of comfort with autonomy and uncertainty,and the ability to make good decisions in the face of dynamic anddiscontinuous environments. Further, the organization suggests thatveterans are far more disposed to assume high levels of trust incoworkers and superiors, which “has been consistently highlightedin organizational behavior literature as a significant predictor ofhigh-performing teams, organizational cohesion and morale, andeffective governance systems.”

The Claims Connection

How might this translate specifically to the claimsindustry?

One area that would appear to be a very natural fit is that ofindependent adjusting, specifically catastrophe loss adjusting.This is because many vets are accustomed to the rigors of adeployment and the challenges and inconveniences accompanying aprolonged and often indefinite assignment. Stress, and particularlythe capability to cope with it, is often cited as the top predictorof success among new independent adjusters. Technical aptitude,policy knowledge, and interpersonal skills are all important, butwhen the claims files start piling up and the pressure is on, it'sabout managing time and managing stress. Veterans have thousands ofhours of training in this critical aptitude under their belts.

Moreover, veterans are accustomed to working independently andacting decisively on their own yet within a predetermined protocol.This is precisely the kind of balance required to be successful inthe field as a cat adjuster. The rules of engagement for handlingclaims often changes by carrier for each storm. This translates toa unique set of marching orders for each event. Being able to adaptto those rules of engagement while being confident enough toexecute without excessive handholding is critical to success.

By contrast, the maverick and excessively timid are bothproblematic personality profiles in an adjuster. Instilled inveterans, however, is the right balance of “can-do” and “will-do”from years of discipline and adherence to the principles, such asthe Marine Corps' motto of “improvise, adapt, and overcome.”

Some adjusting firms are already attuned to this. WorleyCatastrophe Response, for example, has been recruiting veterans forseveral years. Beyond the opportunity to help those who havehonorably served our country, Worley views vets as ideal candidatesto meet the challenges of independent adjusting. So far, theresults have been exceedingly positive. Herb Carver, director ofcorporate development at Worley, notes that vets “understand realstress and come with a built-in empathy in helping oneanother.”

“They value leadership and the chain of command,” he says. “They[can also]improvise while maintaining a clear sense of mission.That's a unique and highly valuable set of core characteristicsthey bring from day one.”

Those core characteristics would find a happy home in nearly anyposition within the claims industry, not just independentadjusting. But how can we bridge the gap? While companies likeWorley Cat are quietly making it happen already, advocacy groups,such as the Disabled Veterans Insurance Careers (DVIC) are makingtremendous progress in connecting our troops with positions in theinsurance industry. In addition, several schools have begun makingit easier for veterans to train. AdjusterPro, for example, hasdeveloped the Insurance Claims Adjuster Professional (ICAP)designation. This 38-day intensive training program is ideallysuited for veterans and has just been approved under the GIBill.

Along these lines, an obvious way to help facilitate thetransition of vets to the claims industry is to develop additionaltraining programs that are approved for financial assistance by theDepartment of Veterans Affairs under the GI Bill. The Post-9/11 GIBill, for example, allots up to 36 months of education benefits tothose eligible, paying for upwards of $20,000 in tuition per year.Meanwhile, out-processing centers on various bases throughout theU.S. are filled with VA Transition Officers who are scouring theemployment landscape for legitimate career-path opportunities instable industries. They stand ready to help newly discharged vetsapply these benefits.

In short, the Veterans Affairs Department is looking for careerssuch as those offered in the claims industry. They have theresources and motivation to help veterans make the transition. Thefit is right. The only question that remains is how can p&cinsurers prudently leverage their own resources as an industry toenlist them? Adapt. Improve. Overcome. It seems a little militaryinfluence could be a great thing.