Is Training the Key to Unlocking Analytics Talent?

Analytics and big data are here to stay. Already creating monumental shifts in the business world, today’s analytical advancements are leading an evolution on how people think about information, track data, shop for goods and even play sports.

Within the insurance industry, organizations are beginning to grasp the monumental potential offered by analytics. Insurers now see analytics as a tool to enhance profitability and gain a competitive edge in today’s increasingly tight market. Analytics is permeating across nearly every area of the insurance organization, from actuarial, claims and underwriting to marketing, sales and human resources. Already, more than one-third of all insurers are investing in analytics and big data.

Unfortunately, as more and more insurers realize the value in leveraging analytics, the demand for high-quality, experienced professionals is rising. In fact, insurance companies are currently adding analytics positions at a rate more than five times faster than overall national employment growth.

As analytics becomes non-negotiable, how can organizations meet their growing needs for talent amid today’s increasingly competitive labor market?

Bridging the Growing Analytics Talent Gap

Insurers now see analytics as a key part of their business. In fact, 74 percent of insurance companies report that the use of information and analytics is creating an advantage for their organization. Meanwhile, 82 percent of insurance professionals believe that organizations that do not take advantage of these trends will become obsolete and uncompetitive.

As insurance organizations continue to focus on building their analytics acumen, the demand for these skilled professionals is skyrocketing. Today’s insurers are looking to add more than 15,000 new analytics positions to their ranks. Unfortunately, an already shallow talent pool is struggling to keep pace with this furious demand. Currently, the industry is set to face a predicted deficit of more than 260,000 analytics and big data professionals.

The race is on to harness the power of analytics and achieve a competitive edge in the marketplace. Alas, the insurance industry is not the only one looking to expand its analytics presence. Faced with the growing talent gap, what solutions do insurance organizations have to meeting their continued demand?

Training as a Talent Solution

Beyond hiring additional talent or looking out of the industry for analytics professionals, insurance organizations should consider implementing internal training programs to develop the analytical acumen of their current employees. Many of today’s professionals pinpoint career development and professional advancement as key retention issues, allowing organizations to not only keep their top talent, but also bridge a growing skills gap.

The first step is determining a baseline of current knowledge in order to focus training efforts on areas of weakness. For example, an organization’s actuarial team may have a much higher understanding of basic analytics compared to the sales team, and thus can start their focus on more advanced analytical skills and topics. In addition, a successful training program will incorporate the four key ways that professionals learn: education, experience; exposure; and environment.

The first is education. This includes traditional learning and development activities that an organization can offer their employees. Beyond the traditional in-person education, the insurance industry has a number of unique training options that allow professionals to participate in courses at their own pace, on their own schedule.

Some of the key course vendors include: the International Risk Management Institute; LIMRA – a worldwide research, learning and development organization focused on the life industry; AHIP – a national association providing health specific training; and The Institutes – a provider of risk management and property and casualty insurance training. In addition to offering insurance education, The Institutes provides packaged courses for designations and recently introduced a data analytics certification program.

Organizations should look at potential course offerings and determine a selection of applicable options to help their current staff further develop their analytical skills. Organizing course offerings into prerequisite groups – requiring base skill classes before more elective options – will help create a progression to grow knowledge effectively.

Some 74 percent of insurance companies report that the use of information and analytics is creating an advantage for their organization.

The second learning style is experience and focuses on learning on the job. For many organizations this can be incorporated as a phase two in the training evolution, enabling professionals to take the skills they have learned in their formal courses and apply them to their work. Organizations should consider creating opportunities for job shadowing and cross-department work that enables trainees to gain a broad range of experience.

Exposure is the third key learning style and includes interactions and relationships with other people. Insurers should encourage their staff to get involved with professional organizations, join business networks, and take advantage of coaching and mentoring opportunities. In addition, organizations with analytics experts on staff may consider inviting them to serve as guest speakers and present on their experience and skills.

The fourth and final learning style is environment. Employees should have access to information to help support themselves in their training and their work. This can include intranet resources and support tools. Consider putting together a repository of reliable sources–including association memberships, newsletter subscriptions and LinkedIn groups–that employees can turn to as they work to advance their analytics acumen.

Analytical Development

Encourage employees to take advantage of the many complimentary webinars offered by industry associations and vendors. Regardless of the program your organization undertakes, creating an internal training strategy is vital to developing your employees’ analytical skills.

With the talent pool of analytical professionals continuing to dwindle, having internal resources to turn to in your time of need or to help fill a growing gap will be critical to ensuring future success.

Topics Carriers Talent Market Training Development