There may still be plenty of slack in the U.S. workforce.However, if the economy continues at a growth rate of nearly 4% –with more than 200,000 new jobs added each month – it is reasonableto assume we may see signs of a tighter labor market, especially asthe year progresses.

Property and casualty insurers have been discussing potentialshortages in the claims workforce for years. Many claims processingprofessionals are over 45, and these individuals possess levels ofknowledge and expertise that have yet to be passed on to the morejunior ranks. Rather than taking a systematic approach to theproblem of a generational change in the claims workforce, however,many insurers plug gaps as they occur, shifting resources aroundand hoping for the best. That approach may have worked in aslow-growth environment, but it will not be sufficient as theeconomy changes gears.

As 2015 gets under way, insurers should be thinking about acomprehensive plan, not only to address current and future gaps inthe claims workforce, but to transform the role of claimsprofessionals within the organization. We see such a plan as beingbased on five key elements:

1. Finding the rightpeople. In the past, finding a good claims professionalwas a hit-or-miss endeavor. Now, we have access to data that canpinpoint the attributes of a successful claims examiner. A keyfirst step is choosing the metrics and characteristics that reallymatter. The next step is turning data based on those metrics intoanalytics that guide not only recruiting and hiring decisions butthe formative processes of orientation and training. Armed withthese tools, insurers should cast a broader net, not just raidingtheir competitors, but working with colleges to develop the kindsof programs that alert young people to the opportunities within theindustry while providing the needed skills.

2. Facilitating the transferof knowledge. Nearly every insurer faces the problem ofvaluable knowledge leaving the company as boomers (and soon Gen Xworkers) retire. That is why it is essential to document andidentify critical knowledge held by existing employees. Someorganizations have taken the process a step further, enlistingdeparting and soon-to-be departing workers as mentors andcounselors to younger workers, rather than seeing them retirealtogether and take their wisdom and insights with them.

3. Giving the right assignments tothe right people. Insurers acknowledge the concept thatclaims professionals should not be drowned in a sea of routinetransactions that can be more efficiently handled by automatedsystems. Yet for many insurers this is still only a concept. Thisshould be the year that claims professionals focus on the caseswhere their skills and experience can really make a difference interms of value created.

4. Helping them do their jobsefficiently and effectively. Insurers have access toa wide range of tools from mobile devices that facilitate fieldinvestigations to collaborative technologies which foster thesharing of information and expertise. These tools can helpprofessionals be more productive, while leading to better outcomesfor claims investigations. Insurers that have not done so alreadyshould take another look at the technology available and what mightwork in their specific situations.

5. Motivating and rewardingthem properly. Claims professionals are at the heartof the property and casualty insurance function. They makedecisions that have a tremendous effect on the insurer's bottomline and are hugely influential when it comes to retainingcustomers. Accenture's research indicates that the mere act offiling a claim makes customers twice as likely to leave theirinsurer, no matter what the outcome, and if the claim is nothandled to the customer's satisfaction, the customer is almostcertain to switch providers. Given claims professionals' influenceupon both profitability and customer satisfaction, it makes senseto re-think the way that claims professionals are compensated and“incentivized.” In particular, insurers may want to encourage theirclaims people to think more about their role in customer serviceand to focus more on rewarding professionals who go the extra mile,both in terms of fast, accurate resolutions and in terms ofoutstanding, personalized service.

Workforce participants have been through a lot in the last sixyears, from the near-catastrophic loss of jobs in 2008 and 2009, tothe painfully slow recovery experienced more recently. Now with theeconomy picking up steam, workers have more choices and bargainingpower. It's up to the more farsighted property and casualtyinsurance companies to take steps to make a career in claims anattractive option, either for those just entering the workforce orfor those thinking about making a change in 2015.