Experts Discuss Solving Adjuster Talent Gap

LAS VEGAS–The retirement of experienced claims adjusters is forcing carriers to redevelop education and recruitment programs to replace and expand their dwindling ranks, insurance executives said.

“There is a void in the industry,” related George Fay, executive vice president, worldwide property and casualty claim for Chicago-based insurer CNA Financial.

His comments came during a panel discussion yesterday on “Examining Best Practices and Industry Trends,” held here during the 11th annual ACE (America's Claims Event) sponsored by the National Underwriter Company.

Mr. Fay said that after making significant cuts in the development and recruitment of claims adjusters over the years, insurers are now finding a shortage of professionals. Because of this reality, he said, they are now forced to reinvest in claims adjuster programs and recruit young people to the industry.

Mr. Fay was joined in making this assessment by panelists Kevin Toth, senior vice president claims for Harleysville Insurance in Harleysville, Pa., and Vincent Armentano, senior vice president of business insurance claims for St. Paul, Minn.-based Travelers.

“We need a critical focus on this,” said Mr. Armentano, noting studies that suggest the experienced claims workforce will be reduced significantly in the coming years. “We have to tell our story and get the word out that this is a neat career for a lot of folks.”

Mr. Toth said the challenge today is for companies to redevelop their internal claims adjuster ranks and make that a “more exciting move” for prospective adjusters.

Both CNA and Travelers have made major commitments to this end, a move Mr. Toth said would help move others in the industry to expand their own training programs.

To recruit new blood into the industry Mr. Armentano said he looks to nontraditional sources. For example, training construction managers to become property adjusters or boat yard managers to become marine adjusters.

Another tool in recruitment is creative and flexible work arrangements, pointed out Mr. Toth. These arrangements can include flex-hours and work-at-home arrangements. He said such conditions can “engender significant loyalty” and cut down on turnover, which is a major concern for all carriers.

While turnover can be a positive, getting rid of “dead wood,” Mr. Fay said, it must also be managed effectively so a company is not seeing an unusually high turnover rate.

Retentions can be helped through rewards and recognizing accomplishments, such as supporting additional education and giving individuals the sense that the company cares about an employee's goals for advancing their careers, said Mr. Fay.

Both Mr. Toth and Mr. Fay noted another reason for recruiting younger people now is to have the experienced people on hand to be mentors.

In a separate conference session yesterday, Laura Schmidt, technical director for Novato, Calif.-based Fireman's Fund Insurance Company, a subsidiary of Munich, Germany-based Allianz Group, discussed developing a mentoring program.

She said an effective mentoring program involves the manager, mentor and employee all working together. All must understand what is expected from the program.

An effective mentor must have the ability to communicate and educate. The mentor's aim, she said, is to develop someone who is “self-sufficient and self-motivated.”

A manger should institute a status report on the employee's progress. This report is filed by the employee who assesses what he or she has learned and what they expect of themselves. This allows the manager to understand if the mentoring program is effective or if problems need to be addressed, she explained.

Ms. Schmidt emphasized that while the reports takes 10 minutes to fill out, managers must read them and respond so employees know their opinions are not “falling on deaf ears.”