There’s currently a severe talent shortage across all industries and insurance is no exception. Despite the pandemic, the insurance carriers and related activities sector has added nearly 16,000 new jobs since March 2020 and has continued to experience a low unemployment rate, according to the Bureau of Labor Statistics. One of the areas where the talent shortage is highly noticeable for many insurance organizations is underwriting.
For years we’ve discussed the shortage of qualified underwriting talent; and the impact of COVID-19 has further intensified this need. How did the industry get here and what can you do if you’re looking to build your underwriting bench?
Steps Forward
For insurers looking to attract and retain underwriting talent, it’s important to understand the current landscape and adjust hiring and retention strategies accordingly. Here are a few best practices for being an employer of choice and creating a longer-term strategy for combatting the underwriting shortage within your own organization:
Offer remote opportunities.
Focus on retention. It’s difficult to find new underwriters, making it even more vital to retain current ones. While remote work options are necessary, recognize that this also means other companies can recruit without geographic restrictions. Ensure you’re having frequent and candid conversations with employees about what it will take for them to stay with the organization.
Rethink compensation. If you haven’t evaluated your total rewards and compensation packages recently, take some time to make sure what you’re offering underwriters is competitive with the larger market. This includes offering potential new hires higher compensation, while also ensuring your current team is well-compensated.
Provide development opportunities. Especially for those concerned automation will continue replacing underwriting jobs, create clear career paths and professional development plans. Offer opportunities for individuals to lead projects and flex their skills, while actively communicating that you are invested in their continued advancement.
Embrace the human element. If your current underwriting staff is working longer and more intense hours than usual, make sure they’re being rewarded and compensated accordingly. At the same time, ensure managers and other leaders are proactively communicating with individuals and letting them know their efforts are valued.
As the industry continues to combat the underwriter shortage, it’s imperative insurers focus on retaining and building current underwriting talent, while offering flexibility, growth opportunities and competitive compensation. Additionally, highlighting the attributes and continued need for underwriters will help draw new talent to the industry. Regardless of automation, the human element of underwriting provides unique insight that won’t be easily replicated.