The Aging Workforce in Claims

The consulting firm of McKinsey & Company estimates that the average age of an insurance agent in the United States as of 2015 is 59 years old. This means that a large part of these professionals will be exiting the industry in just about six years. Insurance agents are different from insurance adjusters; but the demographics are similar. The average age of property adjusters, according to, is over 40 years old. Many of them are beginning to look at retirement, and this means that they will be exiting the industry within the next 15 to 25 years. The industry has a problem on its hands and needs to start recruiting people.
The fact remains that by 2022 almost 11,000 job openings will be available for property claims adjusters. Consider the figures provided by the Griffith Insurance Education Foundation. They suggest that by 2020, the insurance industry will create more than 400,000 job opportunities. These opportunities will include not only jobs in claims but also the following types of jobs:
• Agents
• Brokers
• Financial analysts
• Legal and compliance professionals
• Marketing professionals
• Risk management and underwriting professionals
Of all these professions, none of them is as significant as the claims adjuster’s role. The claims adjuster is the individual who is able to keep the insurance company’s promise that they make on paper in the insurance policy. Adjusters are responsible to make sure that the policyholder is made whole. This responsibility is formed under the promises and guarantees of the insurance policy. They also must ensure that fraudulent activities of dishonest policyholders are not allowed to take place.
Do you have questions about whether this career is worth the effort? If so, consider the commentary relating to the large number of professionals who have stayed in the business until retirement. On balance, insurance professionals stick with their career until they retire. This means there is significant value in maintaining a career yourself as an insurance professional. Take advantage of the attractive salaries, good benefits, and good personal relationships. If you are able to talk to a retiree, or someone who is near retirement, you will hear that they have good things to say about their job. There are exceptions to every rule, of course, but for the most part, insurance employees seem to be a happy bunch.
It turns out that the industry is actually tough to leave for many people. After retirement, many people maintain part-time jobs as consultants or as claims adjusters. This is especially true of independent adjusters. Semi-retired independent adjusters have the freedom to work whenever they want as long as the claims are available. When a storm hits, claim activity can increase, but independent adjusters can usually make their own schedule. If they want to take one or two claims a week for some extra cash, they can do that. If they want to ramp it up, work hard, and earn a large income, they can do that, too. Most property claims adjusting jobs can be somewhat flexible until the claim volume increases. If you work for a carrier, chances are likely that you will be in a bit more of a constrained situation with dedicated hours of service. At some insurers, you may even have to punch a time clock every day. Still, those jobs are entry-level and as you gain experience, you will find that your freedom and autonomy will also expand. The pay, benefits, and working situation are all reasons people stay in this industry for a long time.
Another great reason to step into the insurance industry as a new candidate is that you will find the competition to be far lower than in other careers. This is due to a wide perception that insurance is an uninteresting job by young people. When asked, they respond with answers such as “insurance is boring” or “insurance is too complicated for me to learn.” None of these things is true, particularly in the world of insurance claims. When a house burns down and somebody loses everything they own, they are not bored and neither is the adjuster who handles their claim. An insurance adjuster’s job is to make the policyholder’s life completely again, as promised under the policy. This can be stressful at times, but it is anything but boring.
The primary reason for the lack of information among young people about the insurance business is that it is not taught in colleges. This is because the industry has made significant attempts to educate its own through its own resources. Thus, industry leaders have not had to approach colleges and universities to ask that for a new curriculum. Additionally, few insurance professionals are hired by educational institutions. The result is that the people who actually are in charge of educating students do not know much about insurance to begin with. But this is beginning to change. For someone who is new to the industry, it is the perfect time to get your foot in the door now and get started on establishing a new career.

The idea of starting a career in insurance is not only important for young people to consider. Many people who have already established a career in another industry have started a second career in the insurance industry. If you have experience in a related field, you can hit the ground running as a property claims adjuster with minimal training. The goal of this book is to convince you that a career as a property adjuster is likely well within your reach and is likely well worth your while to consider. The book will cover some basic coverage information as well as some information about the job requirements. It will also cover the salaries and benefits associated with a career as property insurance claims adjuster.

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