This is the same McKinsey & Company that provides “consulting” and always recommends outsourcing and downsizing, right?
FWIW, the biggest problem that I see is the insurance industry’s reputation of being employee UNfriendly.
Proper use of technology is one aspect. Creating an environment where employees WANT to come to work is another. The industry needs to focus on keeping its current talent in place, and providing a work environment for junior underwriters to learn from senior underwriters, and to also provide the proper work/life balance (something that currently does NOT exist).
Also, catch all of the buzzwords in the McKinsey statement – “Today, P/C carriers need automation, knowledge management and real-time collaboration tools such as screen sharing, alerts, chat, and workflow management”
Could not agree more. As with all industries senior management wants more with less but somehow are unwilling to provide the tools to achieve this. We all want to do a better job but working in environments with antiquated and inefficient systems is not enabling us to achieve the objective.
The industry has to adopt to technologies that will deliver true efficiencies which have been realized in more forward thinking industries for a decade or more. Why does the submission/quote/binding process require the re-keying of data into several systems? Hasn’t anybody heard of STP,(Straight Through Processing)in which the submission data is captured in xml, sent electronically to markets for assessment and quoting, delivered back to distribution partners and insureds, further negotiated, bound, and policy issued without 25 people along the way re-keying the same data into all of their legacy systems (and spending 100+ hours at the current rate of $100k/ year salary). Seems like you’d want your $100k+ talent engaging in more valuable tasks than keying data into archaic systems which have scant reporting capabilities therefore provide no value….
36-years in the loss control side of the industry. I’ve seen many insurance cycles and enough “reorganizations” to make my head spin. Seems the industry defines “reorganization” as do more with less – less staff, less training, bare information essentials, minimum support, etc. Things are on the up-side now, compared to the last 10 years; time for pricing to turn things around to the negative again…
Agree with everyone’s comments here. I’ve been an underwriter at a mid-size mutual company in the Northeast for the past 5 years, and am almost to the point of looking for something else. Work/life balance and a friendly work environment are almost non-existent. However, proper use of MODERN technology would go a long way towards solving this problem. Legacy systems, no integration with Agency Management Systems, no integration amongst our OWN systems, a joke of an Agent Web Portal, and the fact that 5+ people need to touch a file so that all information can be properly noted in our systems is killing us. After reading the article and the other comments here, it’s clear that this is an industry wide problem, so I don’t feel AS bad, but management needs to wake up soon before I’m out the door…
If carrier execs are kept up at night, it’s their own fault. They ought to try to stand up for their underwriters, instead of placing them second to agents.
That’s one reason that I’ll never go back to working for a carrier (or agency/brokerage for that fact). Common sense underwriting gets tossed out the windows for the sake of “doin’ a deal”.
I was a CL UW at a huge PC carrier for 25+ years. Left to go to a smaller carrier. I keep in touch with friends at the old place and hear about wave after wave of frontline UW layoffs and the survivors up to eyeballs in work – 50-60 hours not unusual. But they keep management/exec layers and add more. Then wonder why EE’s are unhappy.
The industry has really changed over the years. It used to be an underwriter was someone treated with respect and looked to for answers. Top execs at companies (for the most part) were honest and paid attention to what the underwriters said-they were the main person to turn to.
Now, we have execs that in many cases, were never underwriters or are lawyers or actuaries or have some other background. They will lie and treat underwriters like second class workers. The people they look to for answers are actuaries, or claims people.
The business of being an underwriter is really a thing of the past and only rests now in London.
Companies are now going toward automation and getting rid of underwriting and processing expertise. Few people actually understand how things work, they just know how to push the right button. How can you design systems for products when you know nothing about the product? No more paper pushers, just automotons pushing the right buttons. Automation is a great thing if taken in moderation.
Agreed that it should never get to the point where it becomes “Me Underwriter, Me Push Button”, but SOME automation is critical to get rid of inefficiencies in our daily processes. It shouldn’t take 3 people and 6 hours to issue a policy, but it does. I shouldn’t have to manually type full quote letters because my rating system is incapable of generating a basic template for me to modify as necessary, but I do. If I have to spend most of my time doing clerical work, it benefits nobody.
Absolutely, young underwriter. What I do see is that automation is becoming the tail wagging the dog in many organizations. It’s a tool to support the other functions, not a goal in itself.
Hire a seasoned property casualty professional. There are plenty of us out of work. Fifty percent of my close friends are now laid off, ages 52 to 64. Must have 200 years of good solid experience between us all, conducting ourselves in a honest and diligent manner throughout our careers.
I’m sick of being required to provide my year of graduation on the on-line job applications. The only info. that can be gleaned from that is my approximate age. Very clever.
Some young professionals today want more modern systems and sometimes, the “old timers” don’t want to learn or be bothered with new systems. Remember, I used the words “some” and “sometimes” so please, don’t waste time jumping down my throat. I’m giving my opinion here based on 20 years in this industry.
I’m a young underwriter in the P&C industry for 5 years now. I noticed the remark about turnover. Here’s my insight:
The only way I’ve seen my peers get substantial pay increases is by changing carriers.
If there’s relatively limited opportunity for upward movement and your pay is stagnant for years while the cost of living increases steadily, then how could you not be enticed to move for a better deal?
We’re not asking for 20% raises every year. But when we apply 5% inflation guards to property limits how can you justify not giving a 5% salary increase? It’s like taking a pay cut every year.
I think I’m lucky enough to have found a carrier that values its employees and has very capable management. But a former employer, a large national carrier, tends to pay the underwriters 1/3 less than market value with promises of “bonuses” that hardly ever come around and if they do the favoratism is rampant. If you don’t adequately compensate your employees while your executives soar around on Gulfstreams sipping Dom then you better get ready for huge underwriting turnover and total destruction of agency relationships.
TL;DR Treat your quality employees like rare assets and compensate them fairly with regular incremental increases.
I went to a career seminar a few weeks back and I was floored to hear a couple people that were out of work had NEVER
used a computer. Were afraid of ’em! The career coach was totally amazed and shouted at them to “get over it!!” My last job was at a paperless office so I’m not a total dino.
Ha ha.
I once heard it said that a Consultant is somebody who steals your watch, and then tells you the time. I wish I had all the money that my employer has spent on McKinsey consulting! I can think of specific initiatives they recommended that have been undone at a later point in time.
And now to the main topic…companies need to start placing more value on the Underwriter role and respecting these valued employees more than most of them presently do. Lately it seems to me that a company would prefer to hire an inexperienced college grad they can underpay and hand a sheet of rules and underwriting templates devised in home office, rather than spend a fair payroll on hiring people who can actaully evaluate risk and determine appropriate premium, terms, and conditions on behalf of the carrier.
Based on what I’ve learned about our industry and its recent past, underwriting used to be considered a pure art form. Market pressures, a generation gap and many different advances in technology are making aspects of underwriting more of a science. Underwriting is becoming “art plus science,” where underwriters are supported by advanced systems that deliver info and automation at their fingertips. These technologies help enhance decision making, pricing models, risk selection, and more — but at varying degrees, depending on a specific business. Some can complement the art with science to make underwriters’ jobs easier, free them to focus on complex risk and help carriers increase business while maintaining or improving quality.
This is the same McKinsey & Company that provides “consulting” and always recommends outsourcing and downsizing, right?
FWIW, the biggest problem that I see is the insurance industry’s reputation of being employee UNfriendly.
Proper use of technology is one aspect. Creating an environment where employees WANT to come to work is another. The industry needs to focus on keeping its current talent in place, and providing a work environment for junior underwriters to learn from senior underwriters, and to also provide the proper work/life balance (something that currently does NOT exist).
Also, catch all of the buzzwords in the McKinsey statement – “Today, P/C carriers need automation, knowledge management and real-time collaboration tools such as screen sharing, alerts, chat, and workflow management”
Could not agree more. As with all industries senior management wants more with less but somehow are unwilling to provide the tools to achieve this. We all want to do a better job but working in environments with antiquated and inefficient systems is not enabling us to achieve the objective.
The industry has to adopt to technologies that will deliver true efficiencies which have been realized in more forward thinking industries for a decade or more. Why does the submission/quote/binding process require the re-keying of data into several systems? Hasn’t anybody heard of STP,(Straight Through Processing)in which the submission data is captured in xml, sent electronically to markets for assessment and quoting, delivered back to distribution partners and insureds, further negotiated, bound, and policy issued without 25 people along the way re-keying the same data into all of their legacy systems (and spending 100+ hours at the current rate of $100k/ year salary). Seems like you’d want your $100k+ talent engaging in more valuable tasks than keying data into archaic systems which have scant reporting capabilities therefore provide no value….
36-years in the loss control side of the industry. I’ve seen many insurance cycles and enough “reorganizations” to make my head spin. Seems the industry defines “reorganization” as do more with less – less staff, less training, bare information essentials, minimum support, etc. Things are on the up-side now, compared to the last 10 years; time for pricing to turn things around to the negative again…
Agree with everyone’s comments here. I’ve been an underwriter at a mid-size mutual company in the Northeast for the past 5 years, and am almost to the point of looking for something else. Work/life balance and a friendly work environment are almost non-existent. However, proper use of MODERN technology would go a long way towards solving this problem. Legacy systems, no integration with Agency Management Systems, no integration amongst our OWN systems, a joke of an Agent Web Portal, and the fact that 5+ people need to touch a file so that all information can be properly noted in our systems is killing us. After reading the article and the other comments here, it’s clear that this is an industry wide problem, so I don’t feel AS bad, but management needs to wake up soon before I’m out the door…
If carrier execs are kept up at night, it’s their own fault. They ought to try to stand up for their underwriters, instead of placing them second to agents.
That’s one reason that I’ll never go back to working for a carrier (or agency/brokerage for that fact). Common sense underwriting gets tossed out the windows for the sake of “doin’ a deal”.
I was a CL UW at a huge PC carrier for 25+ years. Left to go to a smaller carrier. I keep in touch with friends at the old place and hear about wave after wave of frontline UW layoffs and the survivors up to eyeballs in work – 50-60 hours not unusual. But they keep management/exec layers and add more. Then wonder why EE’s are unhappy.
The industry has really changed over the years. It used to be an underwriter was someone treated with respect and looked to for answers. Top execs at companies (for the most part) were honest and paid attention to what the underwriters said-they were the main person to turn to.
Now, we have execs that in many cases, were never underwriters or are lawyers or actuaries or have some other background. They will lie and treat underwriters like second class workers. The people they look to for answers are actuaries, or claims people.
The business of being an underwriter is really a thing of the past and only rests now in London.
Companies are now going toward automation and getting rid of underwriting and processing expertise. Few people actually understand how things work, they just know how to push the right button. How can you design systems for products when you know nothing about the product? No more paper pushers, just automotons pushing the right buttons. Automation is a great thing if taken in moderation.
Agreed that it should never get to the point where it becomes “Me Underwriter, Me Push Button”, but SOME automation is critical to get rid of inefficiencies in our daily processes. It shouldn’t take 3 people and 6 hours to issue a policy, but it does. I shouldn’t have to manually type full quote letters because my rating system is incapable of generating a basic template for me to modify as necessary, but I do. If I have to spend most of my time doing clerical work, it benefits nobody.
Absolutely, young underwriter. What I do see is that automation is becoming the tail wagging the dog in many organizations. It’s a tool to support the other functions, not a goal in itself.
Hire a seasoned property casualty professional. There are plenty of us out of work. Fifty percent of my close friends are now laid off, ages 52 to 64. Must have 200 years of good solid experience between us all, conducting ourselves in a honest and diligent manner throughout our careers.
I’m sick of being required to provide my year of graduation on the on-line job applications. The only info. that can be gleaned from that is my approximate age. Very clever.
Some young professionals today want more modern systems and sometimes, the “old timers” don’t want to learn or be bothered with new systems. Remember, I used the words “some” and “sometimes” so please, don’t waste time jumping down my throat. I’m giving my opinion here based on 20 years in this industry.
Oh and by the way, I would prefer to work with seasoned U/W’s anyday. Afterall, this is where the younger generations learn from.
I’m a young underwriter in the P&C industry for 5 years now. I noticed the remark about turnover. Here’s my insight:
The only way I’ve seen my peers get substantial pay increases is by changing carriers.
If there’s relatively limited opportunity for upward movement and your pay is stagnant for years while the cost of living increases steadily, then how could you not be enticed to move for a better deal?
We’re not asking for 20% raises every year. But when we apply 5% inflation guards to property limits how can you justify not giving a 5% salary increase? It’s like taking a pay cut every year.
I think I’m lucky enough to have found a carrier that values its employees and has very capable management. But a former employer, a large national carrier, tends to pay the underwriters 1/3 less than market value with promises of “bonuses” that hardly ever come around and if they do the favoratism is rampant. If you don’t adequately compensate your employees while your executives soar around on Gulfstreams sipping Dom then you better get ready for huge underwriting turnover and total destruction of agency relationships.
TL;DR Treat your quality employees like rare assets and compensate them fairly with regular incremental increases.
I went to a career seminar a few weeks back and I was floored to hear a couple people that were out of work had NEVER
used a computer. Were afraid of ’em! The career coach was totally amazed and shouted at them to “get over it!!” My last job was at a paperless office so I’m not a total dino.
Ha ha.
I once heard it said that a Consultant is somebody who steals your watch, and then tells you the time. I wish I had all the money that my employer has spent on McKinsey consulting! I can think of specific initiatives they recommended that have been undone at a later point in time.
And now to the main topic…companies need to start placing more value on the Underwriter role and respecting these valued employees more than most of them presently do. Lately it seems to me that a company would prefer to hire an inexperienced college grad they can underpay and hand a sheet of rules and underwriting templates devised in home office, rather than spend a fair payroll on hiring people who can actaully evaluate risk and determine appropriate premium, terms, and conditions on behalf of the carrier.
Based on what I’ve learned about our industry and its recent past, underwriting used to be considered a pure art form. Market pressures, a generation gap and many different advances in technology are making aspects of underwriting more of a science. Underwriting is becoming “art plus science,” where underwriters are supported by advanced systems that deliver info and automation at their fingertips. These technologies help enhance decision making, pricing models, risk selection, and more — but at varying degrees, depending on a specific business. Some can complement the art with science to make underwriters’ jobs easier, free them to focus on complex risk and help carriers increase business while maintaining or improving quality.