Bridging the generational gap in the claims profession

To retain and attract new talent, we first need to understand the differences between each generation. Boomers often began their careers due to personal connections to the industry and with relatively limited knowledge of insurance claims handling. Learning on the job by shadowing career claims handlers, attending in-person meetings, trials and reading case law in volumes and long handwritten documents was one of the main methods to becoming a fully-fledged claims handler for their generation.

Generation X, on the other hand, are more likely the generation where the saying “nobody decides to work in the insurance industry, but rather they end up in insurance,” often having transitioned into claims through more formal education routes such as business, finance and law, and assimilated the known knowledge with the skills required for an effective claims handler from the Boomers, while Gen X embedded computers as tools of the trade.

In contrast, Millennials and Gen Z have grown up as technology natives, with access to detailed understandings of the intricacies of the insurance market if they chose to search online and the ability to use technology to support their development while having access to various entry points into insurance, including graduate and apprentice schemes, which have become more prolific and accessible in recent years.

Bridging the generational gap

With these various generational experiences, a big challenge for employers is bridging these differences to be inclusive. Face-to-face mentoring from senior claims handlers and gaining experience through in-person meetings and court hearings is not always accessible in the hybrid world and does not necessarily mirror how each generation learn.

Conversely, Boomers and Gen X’s comfort is in building relationships in-person and picking up the nuances of face-to-face interactions (e.g. virtual meetings). Although the Covid-19 pandemic has accelerated the shift (and acceptance) to hybrid working for all generations, the impact of this has differed and not always been positive.

However, it seems to be non-negotiable for the younger generations according to a recent Deloitte study, highlighting that Gen Z employees were more likely to leave their jobs if they couldn’t work from home one day per week.

Comparatively, the aforementioned LSE report explains that the hybrid approach and the lack of collaboration between older and younger generations seems to be resulting in an environment that leads to friction and discord.

So how do we balance the different approaches and still transfer the "lived" experience of Boomers and Gen X to Millennials and Gen Z in a way that aligns with their preferred learning and development styles? Some practical solutions could include recording seminars in-person and online or one-on-one mentorship being captured by AI and on a library database for exchanging knowledge.

These include listening and learning from others, improving communication skills with clients and stakeholders, understanding nuanced approaches, collaborating with other insurers, underwriters and risk management personnel to resolve claims, and building a team environment that assists customers.

This begs another question: how can we capture these from the Boomers and Gen X, who will be retiring from the profession in the coming years?

Crucial skills and practice for knowledge transfer

Undoubtedly, the industry needs to bridge this generational gap, and innovative solutions are required as well as buy in from the generations to these solutions. The LSE article alludes to an answer whereby, “generations agree on the skills that are most important to productivity and career advancement.

The top three skills being active listening, time-management and judgment in decision making”. If this is the meeting point of the generations, what can we do to achieve work practices that are inclusive of all the generations? Active listening can be in-person and online depending on the preference; online seminars are now commonplace and database libraries can, and are, set up.

Internal or external “Insurance Wiki” forums could also encourage proactive knowledge sharing across the insurance profession and an understanding as to how to time manage effectively for group and solo tasks.

However, judgment in decision making is a learnt experience but that does not necessarily mean it has to be one-on-one every time. Where there is one-on-one mentorship, can this be captured by AI for reference by others?

The pivotal role of mentoring

Markel is continuing to address the talent gap and achieve the most effective intergenerational inclusive work practices through structured and reverse mentoring. Our Mentoring the Market programme – in collaboration with one of our panel lawyers, DAC Beachcroft – provides a claims and technology mentoring network for all generations within our claims teams. The initiative comprises remote training sessions and an online library of excellence, where mentors can be chosen based on the knowledge sought.

From our experience and understanding, mentoring programmes lead to engagement and faster career progression, and to achieve inclusive work practices, we need diversity of thought, perspectives, expertise and experience at every level.

In adopting this approach, we try to encourage each generation to bring their strength to the workplace, fostering a more collegiate and innovative environment. We also seek to engage each generation by general diversity, encouraging early career candidates from under-represented backgrounds to our claims teams through organisations such as the Brokerage and hosting students as part of the London Market Group X Vision Path Futures Academy, which engages with a diverse range of students at 50 schools across London to raise awareness of careers in insurance and connect them with industry professionals.

Proactively seeking an intergenerational workplace for claims professionals will minimise the loss of valuable knowledge in the profession and retain those that want to seize opportunities for further innovation. In fostering collaboration, leveraging technology, and implementing structured mentoring programmes, the industry can ensure that productivity and engagement and the strengths of each generation are recognised and utilised to full effect.