The establishment of a clear learning path can encourage new colleagues to acquire the necessary knowledge and skills needed for their jobs. (Photo: Shutterstock)
Editor's Note: This is the second article in a multiple-part series on attracting, retaining and building into the next generation of insurance professionals.
Insurance claims is a dynamic and fast-paced field that requires professionals to possess a wide range of skills and competencies. While academic institutions provide a foundation of knowledge, there are certain skill gaps that schools have failed to adequately address, hindering the readiness of new entrants.
A 2019 report from the Society for Human Resource Management found that 51% of its members said that education systems have done little or nothing to help address the skills shortage. The top missing soft skills, according to these members: problem-solving, critical thinking, innovation and creativity; the ability to deal with complexity and ambiguity; and communication. These findings are consistent with the needs among claims professionals and reflect the critical skills of business writing, decision-making, negotiation, and emotional intelligence — areas where many entrants into the claims industry lack proficiency, inhibiting growth.
To bridge these gaps and enhance the productivity and effectiveness of new hires, the claims industry should consider developing a comprehensive readiness curriculum. For success to be achieved, this curriculum must be met with the learning agility of new hires; a behavior that reflects their curiosity and motivation to continuously learn new skills throughout their career. As more traditional technical skills such as coverage, construction methodologies and estimating practices are learned on the job, this article will explore the skill gaps centered on analytical and communication concepts and provide recommendations for creating a curriculum to address these deficiencies.
Bridging the skills gap
Business Writing: Effective communication is crucial in the insurance industry, and business writing is an essential skill for a claims professional to master. However, many industry entrants struggle with crafting clear, concise and persuasively written communication. A recent AACU study found that 90% of employers ranked written communication as either "very" or "somewhat" important. Yet, only 44% believed graduates were adequately prepared in this area. Written communications have evolved to a cryptic level with texting and messaging. As a result, many early career candidates struggle to structure communications to a level expected by insureds and their carriers.
To address this gap, the readiness curriculum should include modules on business writing, covering topics such as writing courteous and professional communications, drafting concise reports, and composing effective customer correspondence. Practical exercises, such as reviewing and editing sample claims reports, can help new hires develop their writing skills. Additionally, providing access to self-paced writing resources and offering feedback and coaching sessions can further support their growth in this area. For the claims industry, the written report is the work product by which adjusters are measured.
Decision Making: Claims professionals often face complex and time-sensitive decisions. However, many new entrants struggle with effective decision-making, particularly in ambiguous situations. Study results published in Forbes found 60% of managers claim new graduates lack the critical thinking and problem-solving skills they feel are necessary for the job.
To strengthen thinking and decision-making abilities, a readiness curriculum should incorporate modules that focus on problem-solving techniques, risk assessment and analytical thinking. Case studies and simulations can help provide real-world scenarios where new hires can practice making informed decisions.
Facilitating discussions and mentoring programs can also help develop their decision-making skills by encouraging critical thinking and providing guidance when evaluating various options. The role of a claims professional not only requires the ability to think critically but explain your decision rationale based on statutes, the policy and related guidance. The ability to communicate, and often defend, logic to a client or insured becomes equally important as the ability to make decisions.
Negotiation: Negotiation plays a vital role in the insurance claims industry, as professionals must collaborate with clients, service providers and other stakeholders to reach mutually beneficial outcomes. However, many new entrants often lack the necessary negotiation skills. Many employers feel that recent graduates have weak negotiation skills — an inability to convey reasons that your approach is the best, define impacts that the plan will achieve and how it will benefit others. To address this gap, a readiness curriculum should include modules on negotiation techniques, conflict resolution and relationship building. Role-playing exercises can simulate negotiation scenarios, allowing new hires to practice effective communication, persuasive techniques and problem-solving. Additionally, providing access to negotiation resources and conducting workshops led by experienced negotiators can further enhance their negotiation skills.
Emotional Intelligence: Emotional intelligence is the ability to recognize and manage emotions in oneself and others. In the claims industry, where professionals often deal with clients who are experiencing difficult situations, emotional intelligence is crucial. Unfortunately, many graduates lack this skill, as it is often not explicitly taught in academic settings. A CareerBuilder survey of more than 2600 U.S. hiring managers reported 71% of employers value emotional intelligence in employees over IQ; and 34% place greater emphasis on EQ when hiring and promoting employees.
To develop emotional intelligence, a readiness curriculum should incorporate modules on self-awareness, empathy, active listening and managing emotions in high-stress situations. Interactive workshops, group activities, and coaching sessions can provide new hires with opportunities to enhance their emotional intelligence. Moreover, fostering a supportive and inclusive work environment that encourages open communication and empathy can help reinforce these skills.
The claims industry requires professionals with a diverse set of analytical and communications skills, and schools often fail to adequately address skill gaps. By developing a comprehensive readiness curriculum, businesses can build bridges to knowledge for employees. A supportive and promoted learning environment within organizations can do much to help bridge skill gaps and position the organization as the next chapter in a career of learning.
Future articles in this series with include Specialized programs to build community and Defining a career trajectory to encourage retention.
Douglas Dell is vice president and director of Vale National Training Center, Inc. Contact him at Douglas.Dell@sedgwick.com. Future articles in this series with include creating specialized programs to build community and defining a career trajectory to encourage retention. Opinions expressed are the author's.
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