Here’s a fun way to place the broadening P&C talent gap in some context:
1.) Do you work at a P&C Insurance Carrier?
2.) Is the inability to find
exceptional good sufficient talent materially impacting your business?
If #1 is “Yes”, then we both know the second answer. The stats aren’t difficult to find:
- Average age in the P&C industry is 56
- 400,000 P&C jobs to fill by 2020
- 25% of current insurance professionals to retire by 2018
- And so on…
An Increasingly Common Answer
Not surprisingly, the insurance business process outsourcing market continues to expand at YOY double-digit growth. Accelerating this trend is a broader understanding in the boardroom that “outsourcing” doesn’t mean “offshore sweat shop”. These days, the business case isn’t even necessarily a cost play. Today’s business process outsourcing market enables P&C carriers to quickly enhance capabilities, broaden distribution, tap into innovation, and often times deliver a customer experience superior to the one those resistant to change aim to protect. It can be supplementary; not necessarily job-replacing.
Nonetheless, P&C carriers remain challenged: most P&C business processing outsourcing vendors mandate the usage of their policy administration and/or claims platform for the delivery of operational services. But what about the carriers that just completed (sort of) a multi-year, multi-million, multi-CIO implementation or modernization project? What about the carriers that’ve concluded that simply re-facing their legacy system with customer engagement & workflow enhancements likely yields a commensurate ROI a heckuva lot faster? Or in short: what about the carriers that don’t need a new platform?
Beyond technology constraints, many companies simply don’t need full-blown outsourcing. Often times more targeted or “surgical” support would help a carrier achieve operational, production growth, or retention objectives:
- Policy Administration & Customer Service: Overflow Capacity, Extended Hours
- Alleviate Operational Constraints; Provide “When-I-Need-You” Service
- Underwriting: Low-Level Underwriting Support, Inspection Reviews, Renewal Re-underwriting
- Free up precious Underwriting Talent to focus on more valuable risk review & selection
- Claims: Outbound Claim Status Updates
- Customer experience, and thereby retention, is materially improved when the insured feels informed
- Sales: Outbound sales support to follow-up on prospects (for Agent Partners or Direct Carriers)
- Expand distribution reach (particularly effective 5 – 7:30 PM local time)
The (Very) Short List
While a shorter list, P&C operational support companies that deliver services on their clients’ platforms actually do exist. The list shrinks if criteria include “U.S. Based”, shrinks further at “A-la-Carte / Targeted Services”, and even further yet at “Licensed Producers to Support Distribution”. OK; too obvious? If you’d like to know how we help P&C companies “plug the gap”, drop us a line at email@example.com or check us out at www.cxis.com.