The Four Pillars of an Insurance Culture that Retains Top Talent

Specialized underwriting and claims expertise set carriers apart, but competition for top talent is fierce. To attract and retain the best candidates for the job, insurers need to create a culture that makes their staff feel supported, fulfilled and empowered to keep growing.

By: Nationwide® | February 29, 2024

In 2023, The U.S. insurance industry added 39,500 jobs, growing its numbers by 1.4%, according to the U.S. Bureau of Labor Statistics. According to another labor market study, more than 60% of carriers intend to hire more staff this year. Primarily, insurers are looking for talent with specialized underwriting and claims expertise so that they can deliver a superior experience for clients.

Specialized, industry-specific knowledge yields policies that are tailored to a client’s unique exposures, support optimal claims outcomes, and generate better financial results for everyone. But this expertise takes time to find and develop.

Insurers face the challenge of attracting and retaining top talent in order to keep delivering world class results for their customers. That challenge has been exacerbated in recent years by a hot job market. Across the board, employers have to work harder to find and hold on to the best talent.

In insurance and everywhere else, workplace culture plays a big role in recruitment and retention efforts. Nationwide is no exception.

“Our E&S Brokerage Casualty team is hiring at a pretty aggressive pace this year. We’re in the midst of a lot of recruiting and interviewing,” said Ashley Moffatt, SVP Nationwide E&S Brokerage Primary Casualty. “The culture is something that’s very palpable here. The saying ‘a workplace that works for you’ isn’t just a slogan for us. It’s just our commitment to creating a flexible, supportive environment.”

Moffatt highlighted four pillars of a workplace culture that Nationwide consciously builds for employees:

1. Flexibility that supports work-life balance.

Ashley Moffatt, SVP Nationwide E&S Brokerage Primary Casualty

The shift to remote work took hold during the COVID-19 pandemic and for many companies has proven to be a boon for productivity and employee satisfaction. Workplaces that offer a mix of fully remote, in-office and hybrid positions give employees the flexibility they need to balance work and home commitments.

Flexible work options also signify trust in employees’ ability to manage and prioritize their time effectively.

“We understand that the conventional 9-to-5 model may not fit everyone’s needs. We believe in trusting our employees’ ability to choose what works best for them. It’s rooted in an understanding that a happy, balanced, empowered workforce is more productive and engaged,” Moffatt said.

“By offering that mix of remote, hybrid, and in-office options, we cater to a diverse set of preferences and life circumstances, and ensure that each team member can work in a way that best suits their needs and contributes most effectively to our strategic objectives.”

Offering the option to work remotely also broadens the talent pool, allowing employers to consider candidates anywhere in the country, not just in their own backyard.

2. Access to the latest technological tools.

Investing in technological advancement – including modern underwriting and claims management platforms, customer portals, and analytical tools – ensures carriers continue to maximize efficiency and deliver a modern customer experience that insureds value. But access to top-tier technology also attracts workers who understand how these tools help them do their jobs.

“In today’s rapidly evolving digital landscape, candidates are increasingly tech-savvy and expect their employers to provide advanced technological tools to enhance efficiency and effectiveness. One of the most common questions I get asked during interviews is about our underwriting platform and technology in general,” Moffatt said.

“We pride ourselves on being an early adopter of innovation in the insurance sector, from AI-driven analytics to modern underwriting platforms. We ensure our team is equipped with the best tools to excel in their roles. This not only improves service and delivery, but also provides a stimulating work environment.”

At Nationwide, those tools include an AI-driven research platform which has helped both new and experienced underwriters to triage new business, easily reference the insurer’s guidelines and determine if risks are within their appetite. It continues to evolve based on underwriter feedback.

“The system touts the ability to potentially reduce underwriting time by up to 60% because of its deep web search capabilities, crime and location data, loss run analysis, and risk scoring. It’s been pretty fantastic,” Moffatt said.

3. Opportunities for professional development.

Providing opportunities to expand knowledge, hone skills, explore interests, and move into other roles is critical to retention. It gives employees the chance to build the career they want and that best suits their strengths. Younger candidates especially don’t want to be pigeonholed to one role. They need room to learn and grow.

Insurers can provide those opportunities in a number of ways. Formal training sessions and mentorship programs facilitate transfer of knowledge. But leaders who listen are also critical. It’s important for mentors to recognize their employees’ interests and provide the right resources and opportunities for them to explore those interests.

“Of equal importance is upskilling and cross-training of our tenured professionals. Within our specialty casualty verticals, we’re launching an upskilling project led by various subject matter experts to dive into specific appetite areas to improve our alignment, consistency, and technical acumen,” Moffatt said.

4. Opportunities for personal fulfillment.

Perhaps today more than ever, employees value employers who are good social stewards, who give back to their communities and demonstrate a commitment to bettering the world around them. Being a part of those efforts gives employees a chance to connect with their communities and each other, and to feel connected to a greater purpose.

“Nationwide partners with organizations that create lasting change in our communities by focusing on four strategic impact areas. Those are food security, crisis stability, social and economic empowerment, and children’s wellbeing. Throughout the year, employees get the opportunity to give back to organizations that support these important pillars through various engagement efforts,” Moffatt said.

“Recently, many of us local Scottsdale associates got to participate in a volunteer outing and team building at St. Mary’s Food Bank. Providing these opportunities for our people to connect, giving them the time off to do so, and having our leadership walk the walk continues to be one of the most impactful parts of our culture.”

How Retention of Top Talent Serves Clients and Carriers

All of these factors can create an environment in which employees feel supported and empowered to do their best work, which is what will keep top talent on board for years to come.

“Starting in late 2023 and continuing into 2024, Nationwide is looking to add nine new specialty casualty underwriters within its primary and excess verticals, furthering a commitment to specialized service that we’ve built over 40 years in the E&S/Specialty sector,” Moffatt said.

“Specialized talent is one of the core pillars of our strategy, which is based on verticalization. We’ve been very purposeful in hiring respectable industry talent to address talent gaps so we can continue to grow in our chosen industry segments,” she added.

The underwriting team is supported by equally skilled and experienced in-house claims professionals.

“Our claims teams have the expertise and certifications required to support claims of all sizes ranging from small to potentially full-limit losses. Since we have that dedicated in-house claims team, our underwriters can easily access them for questions, concerns, or to provide coverage intent,” Moffatt said.

“The claims team also engages the underwriters when they round table losses or set large loss reserves so that we’re looped in and can offer our feedback on the claim intent. That level of connectivity with our claims and underwriting professionals has a huge advantage for us and really resonates well in the marketplace,” she added.

That level of collaboration and communication is another factor that creates a supportive and efficient work environment. Ultimately, retention of expertise in the underwriting and claims departments supports consistent service for clients, and long-term profitability.

To learn more, visit nationwide.com/brokers.

About Nationwide

Standard & Poor’s A+¹ | AM Best Rated A² | Fortune 100 Company
Products underwritten by Nationwide Mutual Insurance Company and Affiliated Companies. Not all Nationwide affiliated companies are mutual companies, and not all Nationwide members are insured by a mutual company. Home Office: One Nationwide Plaza, Columbus, OH. Nationwide, the Nationwide N and Eagle, and other marks displayed on this page are service marks of Nationwide Mutual Insurance Company, unless otherwise disclosed.
¹The fifth highest of 21 ratings. The outlook for this rating is stable. Received: 12/22/08. Affirmed: 05/16/23
²The third highest of 16 ratings. The outlook for this rating is stable. Received: 12/7/23. © 2024 Nationwide Mutual Insurance Company.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Nationwide. The editorial staff of Risk & Insurance had no role in its preparation.

Nationwide, a Fortune 100 company, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A by A.M. Best and A+ by Standard & Poor’s.

How a Carrier Partner Can Help Navigate a Challenging Management and Professional Liability Market

A combination of a choppy economy with increased claims frequency and severity could lead to rate increases in the Management & Professional Liability market.

By: Risk & Insurance | April 3, 2024

Rates in the management & professional liability (M&PL) markets were on the rise from 2020 to early 2023 and are now falling rapidly.

M&PL divisions manage a number of different insurance products including management liability (D&O), professional liability (E&O), employment practices liability (EPL), fiduciary liability policies, cyber, etc. In 2023 and into 2024, a big influence on the marketplace has been the extremely aggressive and softening public company D&O market.

Though these rates have been softening for management liability, that may change over the next few years as companies continue to adjust their business models motivated by economic uncertainty. Layoffs were up nearly 200% last year, Forbes reported, even as other recession indicators, like the inflation rate, improved. A recession could lead to an increased claim activity and force carriers to raise rates.

“Whenever there is a meaningful downturn in the economy, we tend to see claim frequency pop up,” said George Schalick, Jr., senior vice president of the Management and Professional Liability Division at Philadelphia Insurance Companies (PHLY).

With continued fiscal uncertainty, businesses potentially already burdened with pandemic-related claims should seek a carrier with a long history in M&PL products. They will provide much-needed risk management guidance and be better positioned to support their insureds during market fluctuations.

Why Insureds Might See an Uptick in M&PL Claims

George Schalick, Jr., Senior Vice President of the Management and Professional Liability Division, Philadelphia Insurance Companies

The current soft market might come as a bit of a surprise as it does not track with previous underwriting cycles and economic conditions. Afterall, many privately held and non-profit organizations struggled during the early days of the pandemic with shutdowns and rapidly declining revenues. But the Government assistance programs, like the Paycheck Protection Program loans, helped keep many afloat during the tough times.

“During COVID many organizations stopped doing business until they were able to sort out all of the health and safety challenges,” Schalick said. “They were forced to lock down, but then all the government assistance programs allowed them to keep people employed. The increased volume of claims we anticipated we would see coming from the lockdowns and restrictions that were imposed upon businesses in the U.S. didn’t manifest at first.”

“Just because there wasn’t an onslaught of reported claims at the beginning of the pandemic, doesn’t mean the circumstances that would give rise to a claim being reported didn’t occur. Courts and the judicial system were closed or slowed and now that they are back open, we’re starting to see the circumstances that occurred during the COVID lockdowns becoming claims today,” Schalick said. “Litigation is progressing.”

Added to the delayed pandemic litigation is a concern over newer claims that might be filed as the country inches toward an economic downturn. Though a recession was avoided in 2023, experts think a soft dip could occur in 2024, with 76% of economists saying there’s a 50% or less chance of an economic downturn this year — that almost always results in more management liability claims.

“During the Great Recession in 2008, we saw an almost immediate spike in claims because of the economic conditions and the pressure it placed on organizations. They were making personnel changes with significant belt tightening almost immediately.” Schalick said.

What’s in Store for M&PL Policy Rates in 2024?

Despite an uptick in claims and increased economic uncertainty, management liability rates haven’t increased, resulting in market-wide pricing levels that may not meet the increased pressure of rising settlements and jury verdicts.

“Rates are going the other direction and settlement values are not falling,” Schalick said.

The mismatch between rates, claim frequency and severity is, in part, because carriers experiencing the dramatic soft market in the public D&O market are seeking premium gain in the private and non-profit market.

“In the public company market, the rates have been decreasing significantly. The rates were increasing in the private, not-for-profit market, and rightfully so, but there’s a desire to supplement overall mid-size D&O for carriers who also write private not-for-profit, and they see that as an opportunity to aggregate premium,” Schalick said. “So the always competitive landscape in the private, not-for-profit market has dramatically increased in the last 18 to 24 months.”

Still, companies of all sizes and types should be concerned about management liability rates in the future. Legal system abuse is resulting in increases in both the amount of litigation and the size of verdicts plaintiffs are receiving.

Certain areas of the country are particularly vulnerable to this type of legal system abuse. As a result, insureds in these localities are likely to be vulnerable to rate increases.

“The environment is so positive for the plaintiff that forces premium increases so carriers are able to stay in that market long term,” Schalick said.

Why a Tenured Carrier Partner Can Help Insureds Navigate An Uncertain Market

It’s clear that insureds are facing an uncertain M&PL market over the next few years. Fortunately, carriers with a long history in the M&PL space will be there to offer stability.

Philadelphia Insurance Companies has been supporting this market for 35 years. PHLY is committed to offering long-term rate stability, even as economic and claims trends start to push premiums upwards. They have an appetite for all sorts of companies, large and small, for-profit and nonprofit alike.

“We’ve been at this game for a long time and are one of the most tenured underwriters in this space,” Schalick said. “We like to stay very consistent.”

PHLY has worked with both for-profit and non-profit on management liability policies. With dedicated M&PL teams throughout the company’s 13 regions, PHLY provides the support agents and brokers are looking for on behalf of their clients. The teams know their regions well and can respond to local trends. They’re also dedicated to making the renewal process as easy as possible for their partners and policyholders.

“We have real confidence in our results, so we focus a lot on making the renewal experience as painless as possible for all agents and insureds,” Schalick said.

The company is also investing in tools to help insureds avoid losses. Earlier this year, they launched a new online risk management platform, PHLYGateway, which offers resources for insureds on how to create an employee handbook and trainings on issues such as recognizing workplace sexual harassment and discrimination.

If insureds have questions, they can consult a Best Practices Help Line, provided via the platform. That way, they can get on the spot risk management guidance to help them prevent claims.

To learn more, visit: https://www.phly.com/mplDivision/managementLiability/default.aspx.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Philadelphia Insurance Companies. The editorial staff of Risk & Insurance had no role in its preparation.

More from Risk & Insurance

Announcing the 2023 Teddy Award Winners

Rising Star James Needham Talks M&As in the Energy Space, How the Geopolitical Environment Impacts Brokering and More

At RISKWORLD 2023: Experts Say the Future of Workplace Safety Hinges Upon Partnerships and Proactive Use of Data

Unveiling the Truth: The Future of Workplace Cannabis Testing

Sponsored Content by Nationwide