Insurers need to proactively ensure second-hand trauma experienced when handling distressing claims is understood across the sector.
This is according to a report from the 2022/23 Chartered Insurance Institute (CII) New Generation Programme Claims group which also recommends insurers provide access to support, training and open conversations for affected staff.
The study gathered quantitative and qualitative data from more than 200 claims handlers who had been exposed to traumatic cases from across the insurance sector.
It found nearly nine in 10 (86%) respondents reported experiencing negative emotions after handling a distressing claim, including guilt, sadness, panic, anxiety, and personal triggers.
While all lines of business were found to be affected, those operating in property, motor and casualty insurance were found to be most affected.
Respondents reported that the features that made claims particularly ‘distressing’ included loss, physical or mental suffering, and life changing injuries. They were found to be negatively affected by handling these claims both inside and outside the workplace, with 20% reportedly considering a career change based on their experiences.
Just one in five (22%) respondents said their employer had taken steps to ‘identify, prevent or manage instances where second-hand trauma could arise’, while more than half (56%) answered ‘no’ when asked: ‘If you suffered from stress or mental health problems arising from handling distressing claims, did you feel comfortable disclosing this to your employer?’.
Recommendations
Consequently, the New Gen group set out a series of recommendations for employers based on their findings, including:
- Proactively ensuring the potential for second-hand trauma is understood across insurance companies.
- Encouraging employees to talk about their claims with colleagues, managers, or counsellors.
- Ensuring potential employees understand what the role entails and stating what support is available when handling distressing claims at recruitment stage.
- Providing appropriate training on dealing with vulnerable customers, such as those indicating suicidal ideations.
- Developing a culture of openness that does not penalise employees who are experiencing second-hand trauma.
Shauna Hopkins, of the 2022/23 CII New Gen Claims group, said: “This subject has touched the hearts of many people to whom we have spoken.
“Most of our survey respondents could recall at least one traumatic claim that has stayed with them, but many of them have been discouraged from sharing the impact of those events.
“We want to help change the narrative by encouraging claims handlers to talk about their experiences. 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.”
Ashton West, chairman of the CII Claims Community Board, added: “This report is such an important piece of work.
“I have spent many years working in the insurance profession, either handling or being accountable for the management of claims, many of which have involved fatality, serious injury, loss or destruction of homes and businesses.
“The mental health implications of working with these kinds of cases is often overlooked, and not discussed enough within our profession.
“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.”