K Blending mid-market and large case
teams while reducing geographic
or distribution separations, gaining
efficiencies from consolidations for
efficiency;
K Internally moving selectively qualified staff from product, claims, and
risk management areas into underwriting, leveraging their established
expertise with a given industry
vertical, client set, or risk type;
K Hiring from client specific industries,
taking advantage of their industry
expertise and training on underwriting; and,
K Developing underwriting specialists
that focus on specific elements of risk
versus entire cases, which accelerates
training while also shifting to team-based case underwriting.
next Generation of
Underwriters
Addressing the underwriting talent gap
long term requires deciding what the
next generation of underwriters will look
like: Is it a front-line, integral to sales,
deal-making role; a data scientist/stat-istician role; or an industry insider with
deep experience in a particular line? The
strategy helps to drive job definition and
recruiting methods. Regardless of job
definition, a set of personal characteristics for the new generation of underwriters seems to be emerging:
K Embrace technology and recognize
the role it can play in providing
access to information and the manipulation of large quantities of data,
constantly seeking new ways to apply
tools and improve decisions;
K Have a data-driven mindset; learn to
look for relationships between data
and decisions, consistently utilizing
the available data while asking what
other data may be of benefit while
identifying and working to address
gaps or inaccuracies in the data;
K Understand the bigger picture, from
product development through claims
and portfolio management while
continuously looking for better ways
to process the business and serve
clients;
K Deliver solutions versus decisions,
providing alternative coverage
options for difficult cases by looking
beyond the specific risk assessment
at the client’s total need;
K Develop new skills related to other
areas within the company, offering
to participate in projects or research
that crosses multi-functional lines;
and,
K Network with clients, distributors,
other areas in the company, and industry experts, building relationships
that increase knowledge, accessibility, and utility while constantly
enhancing a company’s interpersonal
effectiveness.
Recruiting Trail
Successfully recruiting new underwriters will require a clear understanding
of the role and how it fits, especially
in appealing to younger generations.
For many companies, there will be an
increase in the need to address broader
organizational issues that may be inhibiting recruiting efforts. A few of the more
common ones to keep in mind:
K Appealing to a specific demographic
often requires having already hired
an “evangelist” from that demographic that can advocate for the
company, getting established with
various strategic hires now accelerates this process;
K Accepting and incorporating the new
forms of social media and personal
computing devices will differentiate
companies from those with a “no
Internet browsing” policy;
K Home computing has come a long
way; expecting new hires to work
with equipment generations behind
what they have at home may prove a
barrier;
K There is an increasing preference
for being part of a high performing,
cross-functional team with achiev-
able, measurable, and relevant goals;
K Remote computing (a/k/a, work at
home) and flexible scheduling are
relatively standard expectations, with
the benefit of opening up the avail-
able resource pool for the recruiting
company; and,
K Cultural diversity, work/life balance,
and community involvement have become increasingly important criteria.
Gradual Adjustments
Gradually, it is likely these and other
changes will lead to adjustments in
management practices, salary structures, reward and recognition systems,
advancement and involvement opportunities, and possibly even organizational
structure. Agility and communication
will be core to successfully navigating
these changes, a challenge for an industry that tends to approach change with
conservatisms and care.
Demographic research claims that
over 10,000 Baby Boomers a day will
turn 65 until 2030. Many of these
individuals are underwriters, taking with
them years of irreplaceable industry-spe-cific expertise. Well prepared companies
should have mitigating strategies in place
to help ease the transition and a longer-term plan that identifies the desired
future of underwriting, the projected
needs and exposures, an evaluation
of alternative courses of action, and a
roadmap to lead the way. Anything short
of that risks sustainability. ITA
Steven M. Callahan is an independent management consultant with
over 30 years’ experience in the
insurance industry, 20 spent as a
senior executive over new business,
customer service, operations, and
technology for several large carriers followed by COO roles at two
national distributors. He can be
reached at stevecallahan@technolo-
gist.com.
