Reflecting on 10 Trends in 10 years of Training and Development in Insurance

As we mark MAP Training’s tenth anniversary and a decade of supporting capability development across the insurance sector, we reflect on the most significant trends and lessons that have shaped Training and Development during that time.

1. Virtual Training Explodes

The pandemic in many areas of life didn’t really create new ideas or concepts, but instead turbo-boosted trends that were already happening — think, working from home and the increased use of virtual (online) training. Remote online working took off through the technology we all relied on during the shutdowns: Zoom and Microsoft Teams.

This technology allows virtual training to resemble face-to-face learning more closely through the use of whiteboards, breakout rooms and interactive features.

“But some on-line training is still awful” (does this reflect your view, or have you heard it expressed as we have?).

Some online training does remain mechanical, slide-driven and overly scripted. This reinforces the point that the most important differentiators in virtual training mirror those in the classroom – firstly the programme design (discussions, exercises, scenarios, Q&A sessions, etc) and secondly the skill of the tutor (facilitation, insurance knowledge, credibility). Both must focus laser-like on maximising participant engagement, sharing experience and using real-life and relevant examples.

2. A Return to Face-to face?

On-line training is efficient, cost-effective and allows delivery across geographies and time zones. But despite improvements in technology, imaginative programme design and the skills of the tutor, face-to-face classroom training in our view still offers unique advantages for capability development.

A number of HR and development teams in Insurer clients seem to agree. Over the last year we are seeing increased demand for in-person training, including discussions with clients about delivering in-person programmes in Australia and Bermuda. Another UK client is firmly committed to a blended approach: online recordings for introductory technical material; live virtual sessions for discussion and exercises; followed by an in-person day to test and practise the learning. Topics include negotiation skills, selling the proposition and building relationships for underwriting teams.

3. The Fertile Space

Between pure skills training (e.g. negotiation, problem solving) and technical insurance product training (e.g. property or liability underwriting) sits a set of generic insurance subjects where superior performance requires both skills and technical understanding. This has proved a fertile area for capability development, helping clients maximise the business impact of their investment. Examples include underwriting strategy, pricing, portfolio management, commercial awareness, business acumen, added value of the proposition, risk assessment/selection, and risk management. We expect these areas to become even more important as automation, AI and data-led decision-making continue to expand.

4. The Hidden Cost of Underwriting and Pricing Models

Since pricing models became widely available more than a decade ago, concerns have grown about their impact on underwriting competence. How do new entrants learn to underwrite and price risk if the actuarial model provides an answer? Who contributes to model design? Who challenges the model output? How are exceptional or unique risks handled? Do underwriters just become commercial discounters?

For years this deficiency (and these questions) was masked by older underwriters who learned the fundamentals before models dominated. But this hidden cost — the erosion of underwriting and pricing basics — is now increasingly evident. While the advantages of modelling far outweigh the disadvantages, insurers must recognise and address this erosion as they contend with declining underwriting standards. Serious investment in foundational capability development is now essential.

5. Experience is “Rewarded” by a Vacuum

Onboarding for new entrants and development for inexperienced staff, and then at the other end of the spectrum high-flyer programmes and executive development — but what is there for experienced underwriters? In many parts of the insurance industry, not much – a development vacuum.

In our experience, the most successful and profitable insurers recognise this and have introduced programmes for their more experienced operators – if you like, their key decision-makers. These individuals are among the most expensive to hire, and the most costly to lose. A serious development plan therefore supports both performance and retention. We expect demand for advanced-level programmes to grow in the years ahead.

6. In-house or Outsource?

What is best? Which is most efficient? — to run all training internally, to outsource entirely to specialist providers, or to adopt a half-way house or hybrid model? Fully staffed internal academies can offer competitive advantage, but they are expensive to maintain. Questions arise around flexibility and access to broader market knowledge.

There are as many views on this whole subject as there are insurer clients and of course there is no single right answer. Requirements vary depending on strategy, size, business model, recruitment approach and timing. What we observe is a tendency for insurers to retain product/class technical training in-house, while using external specialists for skills training and for the “fertile space” noted above. Increasingly popular — and cost-effective — is a model where external specialists design and initially deliver the programme, followed by train-the-trainer sessions to transfer future delivery to the client’s internal tutors.

7. You get what you pay for (or do you?)

Buy an off-the-shelf training package or engage a generic multiple industry trainer and the cost could be less than designing a be-spoke training and development solution or using an insurance specialist trainer. But that’s just the initial outlay, and questions could arise around re-use of the training material – either because of its relevance or whether ownership passes to the insurer or is retained by the training provider.

Also ignored in that simple consideration of initial cost is the question of value, and of return for the business. How does one measure the value of training and development to the business? Perhaps a key question for time immemorial, and ultimately impossible to measure exactly. But over the last ten years we have seen, and participated in, meaningful qualitative (if not fully quantitative) approaches to assessing the impact of training and development, and we are absolutely convinced a focus on this aspect by management actually enhances in itself the quality of the training intervention and its perception by attendees and participants.  In short – a professional business, investing seriously, actively considers its return on the investment.

8. Immersion

The best training is delivered by expert tutors, built on relevant material and attended by motivated participants. Poor outcomes arise when trainers lack understanding of the business, material is generic, or participants feel disengaged or don’t want to be there. Recognising these facts of life has pushed development programmes towards bespoke, client-specific design and away from generic “sheep-dip” approaches.

Being external training specialists, means we must immerse ourselves in the client’s business – understanding their strategy, business model and context – so we can design both bespoke and tailored material and deliver with credibility.  This level of immersion ensures we can confidently talk in terms of “we” and “us”, rather than “you”.

9.  The Two Most Important Steps

Built on ten years of experience we would highlight two steps in the training and development process as the most important — one at the beginning and one at the end.

First, during design:

What do you want your underwriters (or other roles) to do differently? If this can be answered fully and specifically, training can be designed to make a real difference, with action-oriented objectives rather than passive aims.

Second, after delivery

How will learners practise and embed their new knowledge and skills? Without follow-up and application, training is likely to be wasted. What works in this area of effective embedding combines manager/leader engagement, on-the-job activities, development plans, coaching, skills assessments and follow-up interventions.

10. The tricky subject of Budgets

The last decade has seen incredible amounts of change in society and insurance — wars, catastrophes, the pandemic, climate change, inflation, data, AI, IT overhauls and the market cycle. Insurers’ profits have been challenged, expenses tightly managed and budgets constrained. Yet most insurers continue to invest in training and development, recognising no doubt that people capability is a core competency and a key (if not the key) competitive differentiator.

Our clients continue to commit both financial resources and internal expertise — including time from leaders, senior stakeholders, subject matter experts, and HR and Development teams.

Summary

At MAP Training we have extensive experience in the development of technical competence in insurance – building structured programmes for underwriters and other insurance roles. We also help organisations build skills and competency frameworks, assess technical capability, and design and deliver programmes to help address capability gaps.

We would like to thank all our clients, from global top-three insurers to specialist insurers, reinsurers, MGAs and Lloyds syndicates, for all the support you have shown us over the last 10 years.

If you want to discuss this or anything else in this article please do get in touch at enquiries@maptraining.co.uk