Setting mutual and mid-market insurance carriers up for success


Mutual and mid-market insurers face a sea of ​​challenges (and opportunities) as the industry looks to grow and invent its way out of the COVID-19 crisis.

One of the main issues that mutual carriers and market mid-rangers feel very strongly is the need for talent. The insurance industry in general is facing a talent shortage, thanks to an aging population and increased competition from financial services and other technology companies. Unfortunately, these issues have been exacerbated by the COVID-19 pandemic and the significant shift in employee preferences towards remote and technology-first environments.

“The talent war affects all areas of the insurance industry, but joint and mid-range carriers certainly feel it in a more specific way,” said Karen Seibert (pictured, right), Vice President of Sales, Carrier Practice, Gallagher Bassett. “The pandemic has led to a real change in work habits and preferences, and while some of these changes – the shift to value-based or purposeful work – fit well with the natural propensity of shared and mid-market carriers, much of the demand for teleworking or Flexible working makes it difficult for this segment to attract talent.”


Amy Cooper (pictured, left), Vice President of Sales, explained that what Gallagher Bassett has heard from many of its common and mid-market carrier partners is that their capital constraints and low geographic access to talent are making it increasingly difficult to find Skilled Claims and Retention Specialists. Carrier exercise, Gallagher Bassett. She stressed that there is no reason to be upset by the mutual and medium-sized airlines.

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“Relationships often have the natural advantage of being more focused on values, community, and purpose,” Cooper said. Business insurance. “This can be really attractive for talent, especially the new generation entering the workforce, looking for a company that considers their place in the community and a role that supports their individual values. Connecting with members and policyholders can take away the feeling some employees feel in large companies. .

“For subscribers, there is ample opportunity here to take advantage of their natural structure, which prioritizes people and society, to take the time to listen and receive feedback from existing employees. This feedback needs to be taken into account in how the joint parties move their organization forward, whether through competitive packages or cultural initiatives and participation or diversity programmes.”

Seibert added that there are many factors that could make common and mid-market carriers the preferred employer – if properly leveraged. For example, they can use partnerships with third-party administrators (TPA) such as Gallagher Bassett to unlock growth and innovation opportunities that attract top talent. By leveraging TPA’s expertise and experience, combined and mid-market carriers can strategically grow into new lines of business or geographic markets without the burden of building critical capabilities from the ground up.

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“Joint companies are under increasing pressure to grow to ensure they stand out in the market and remain competitive for their members, so partnering with a TPA like Gallagher Bassett can immediately help them address recruitment challenges and access new markets,” Seibert said. “The capital investment required to keep up with the latest technology can be limited for many types of companies, but through TPA with a robust RMIS platform and award-winning claims innovations, they can access the predictive analytics they need to grow and diversify, more quickly and without capital constraints.”

TPA can also help joint and mid-market carriers implement technological innovation – a must in today’s industry, not only from an operational standpoint, but also in terms of creating exciting organizations that attract and retain outstanding talent.

“Mutualists are certainly on the path to technological innovation, but there are many obstacles in their way,” Seibert said. “The challenges of capital constraints, lack of in-house technical expertise, and the simple matter of not having enough hours in the day often hinder cross-traffic and mid-market carriers from implementing the technology (particularly not a core service offering) that they need to grow and compete in an effective manner. .”

When the COVID-19 pandemic hit, some common and mid-market carriers didn’t have the technology infrastructure to support remote work, and they weren’t prepared for the future of flexible working that employees demand today. Cooper noted that overcoming technological roadblocks like this is not an impossible task, but it is a path that is difficult to walk alone.

“When we partner with shared carriers, they gain access to a wide range of smart and innovative tools. They often immediately begin to see improvements in managing their software with immediate feedback on file manager performance and solutions, backed by the insights of our claims specialists who have achieved Their careers by helping carriers grow.” “It also provides them with an opportunity to benchmark their results against the broader dataset that Gallagher Bassett has been building since our inception more than 50 years ago.”



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