The Chartered Insurance Institute (CII) New Generation Programme's Claims group has released a report delving into the psychological impact on claims handlers dealing with traumatic incidents within the insurance industry.
The investigation compiled both quantitative and qualitative insights from over 200 claims professionals who have encountered traumatic cases, revealing that a significant majority, approximately 86%, have experienced adverse emotional responses such as guilt, sadness, panic, anxiety, and personal distress following the management of a distressing claim.
The study also indicates that employees across all lines of business are susceptible, with those in property, motor, and casualty insurance being the most affected.
Key factors contributing to the claims being classified as “distressing” included instances of loss, physical or mental harm, and life-altering injuries. The repercussions of handling such claims were also found to extend beyond professional life, with 20% of the participants contemplating a career switch due to these experiences.
The report also highlights a gap in workplace support, noting that only 22% of respondents acknowledged their employer's efforts to address, prevent, or manage the potential for second-hand trauma. Additionally, over half of the surveyed individuals (56%) expressed discomfort in discussing stress or mental health issues stemming from their work with their employers.
Shauna Hopkins, a member of the CII's 2022/23 New Gen Claims group, emphasised the profound effect these findings have had on the community.
“We want to help change the narrative by encouraging claims handlers to talk about their experiences,” Hopkins said. “It is vital that insurers start to recognise the impact of handling traumatic claims and be proactive in supporting their colleagues in order to protect and retain these frontline staff.”
Based on their research, the New Gen group also proposed a set of recommendations for employers, aiming to enhance awareness of second-hand trauma, encourage open discussions about traumatic claims, clarify the support available from the outset of employment, provide training on engaging with vulnerable customers, and foster a culture that supports employees dealing with second-hand trauma. These recommendations are encapsulated in the “AAA” mantra: Acknowledge, Articulate, Approach.
Ashton West, chair of the CII Claims Community Board, also lauded the report as a crucial contribution to the industry, acknowledging the often-overlooked mental health challenges faced by those handling or overseeing claims involving serious injuries, fatalities, or significant loss.
“The mental health implications of working with these kinds of cases is often overlooked, and not discussed enough within our profession,” West said. “It’s vital for us to further our understanding and create a more informed workplace so that we can offer our colleagues the necessary support when dealing with traumatic cases. In doing so, we will strengthen not only our workforce, but also our quality of service.”
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