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: