Only a third of insurers fully committed to investing in claims talent: IACP and Gracechurch

A new global report from the International Association of Claim Professionals (IACP) and independent insurance research firm Gracechurch reveals a growing concern about the investment in claims talent.

Despite the function becoming an increasingly vital differentiator in the insurance industry, the report findings show that while claims services are rising as a critical selling point for insurers, only a third of senior claims professionals feel their organisations are “fully committed” to investing in claims talent.

This lack of confidence is compounded by the fact that many claims teams report existing skills gaps. With only a small proportion of professionals feeling “completely prepared” to meet client needs in the next two to three years, the shortfall is clear.

A staggering nine in ten claims leaders say it is “essential” or “very important” for their teams to develop new skills in the immediate future.

Succession planning and identifying new skills have emerged as key focus areas for future claims talent development. In particular, advancing technological expertise and honing leadership capabilities are seen as top priorities to remain competitive and meet the evolving demands of clients and regulators.

Ben Bolton, Managing Director of Gracechurch, highlighted the urgency of the issue:
“Research shows a consensus that claims service is becoming a competitive priority – customers, sales brokers, regulators, and now global claims professionals all speak as one.

“Despite this, the report shows that organisations aren’t addressing this as a priority. Insufficient investment in the right areas is driving the emerging void, and the claims community is clear that organisations need to focus on new skills, technology, and talent development,” Bolton continued.

“The industry faces a critical moment: will organisations heed the call to prioritise claims talent and maintain a competitive edge?”

Underwriting seen as a higher priority for leadership

The Report from IACP and Gracechurch highlights that despite the growing recognition of claims as a critical part of the customer experience, underwriting is often perceived as more important than claims within many organisations.

As one claims professional explains, “Underwriting is unfortunately still seen as more important. Even though brokers and clients speak highly of the claims teams, internally we still pay underwriters more, for instance.”

This internal bias persists across many (reinsurers) where claims are still “not considered as important as underwriting” by higher management. One challenge is that senior executives typically focus on headline-grabbing or catastrophic claims, rather than the day-to-day claims handling, which is often seen as less impactful.

This oversight contributes to the ongoing disparity in attention and investment between underwriting and claims within many companies.

Commenting on the report, Convex CEO Paul Brand said: “I welcome this Report from IACP and Gracechurch.  The identified gaps in tech and soft skills in claims globally are concerning and should be a trigger for a debate on wider industry action.”

“At Convex we are highly aware that claims is changing very fast and that we need to ensure we have the right skills in place to future-proof the business,” Brand continued.

“Our commitment to stand-out claims service (as proven in the Gracechurch research) also means that we are unequivocally committed to continuing investment, ensuring we meet and exceed our brokers’ and clients’ needs.