Is the Great Resignation causing problems for your organization? You’re not alone. Staffing shortages are already plaguing insurers across the country, and even more workers are considering quitting.
Workers Are Quitting Mid-Shift
Pandemic restrictions are easing, and companies are trying to get back to normal, but workers are quitting en masse. According to CNBC, 4 million people quit their jobs in April. If that sounds like a lot, it’s because it is. In fact, it’s a record.
There have been widespread reports of workers quitting, often with little to no notice, and of hiring managers who can’t fill positions. According to CNN, some people are walking out in the middle of their shifts. The Today Show covered a Burger King in Nebraska, where the workers announced that they were quitting by putting “We all quit. Sorry for the inconvenience” on a large outdoor sign.
What Will the Great Resignation Mean for the Insurance Industry?
So far, the Great Resignation has hit the restaurant industry especially hard, but HR professionals in other industries should be paying attention. After the stress and upheaval of the pandemic, many people are questioning their career choices. According to Business Insider, one survey found that 95% of workers are considering quitting. That’s almost all of your workers.
What will you do if your workers join the Great Resignation? Some businesses have had to close, at least temporarily, until they can find more staff. For insurance companies, that’s not much of an option.
Insurance companies are already dealing with numerous stressors. Natural disasters are resulting in more losses. According to the Insurance Information Institute, data from Munich Re shows that there were 980 events resulting in insured losses totaling $82 billion in 2020, up from 860 events with insured losses totaling $57 billion in 2019. Cyberattacks have also increased sharply, and it’s not just the number of attacks that’s rising; it’s also the size of the ransoms. According to ZDNet, the average ransom increased by 171% between 2019 and 2020, and at least one ransom demand was for the jaw-dropping sum of $30 million.
In addition to the increase in catastrophe and cyber claims, insurers are also dealing with new regulations, increased competition from insurtech companies and, of course, the ongoing COVID pandemic.
Simply put, insurers have a lot to juggle right now. It’s not a good time to be understaffed.
Insurance customers are under pressure, too. When your insurance customers call with questions about their coverage or to report a claim, they expect an immediate response. They don’t want to be put on hold because your short staffed. When they call, you need to answer.
An Onshore Insurance BPO Bridges Labor Gaps
Even if you don’t have a labor shortage now, you never know what tomorrow could bring. There could be a catastrophe that greatly increases call volume, or five of your best employees could join the Great Resignation. As a responsive insurer, you have to be ready for anything.
That’s why so many insurers and insurtechs line up a BPO partner long before they’re in a crisis. They want to have the capability of expanding and contracting their teams to keep pace with the ebb and flow of claims volume and staffing changes.
They also realize that seamless service transitions require careful planning, training and operational rules. Because they care about the customer journey, they’re taking the time to thoughtfully set up their BPO arrangements – so they can instantly deploy extra help whenever it’s needed.
Preempt Staffing Challenges with Covenir BPO
If you like the idea of being ready for anything, partner with the premier insurance BPO, Covenir. We are 100% onshore, with people throughout the U.S. and our solutions are 100% customizable. It’s not an all or nothing proposition. We can expand and contract our services to support your ever-changing needs.
Get the call center support you need, day or night, in 175 languages. Our trained call center reps follow your carefully scripted service plans and provide quick resolution.