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How AI is Helping Proactive Risk Management

How AI is Helping Proactive Risk Management

The insurance industry is traditionally a reactive industry viewed as a necessary evil to most consumers. Consumers hope they never have to talk to their insurance company because it means they’re having a really bad day. In fact, 10 percent of consumers have never interacted with their insurance company because the only touchpoints insurers create are setting up a policy and renewing the policy unless a claim is filed. 

However, new trends in the industry may better the relationship between insurer and customer. Within the next 10 years, it is possible that a proactive risk management approach may take over the insurance industry. This approach could integrate Artificial Intelligence (AI) and traditional human methods to prevent non-natural-disaster-related incidents typically covered by insurance policies. A proactive approach to insurance could help consumers view their insurers as partners in asset protection instead of just a necessary evil.

What is proactive risk management?

Proactive risk management is the process of identifying and remedying potential risks before they become legitimate problems. 

Think about this: approximately 14,000 water damage claims are made daily totaling about $123 million in claims damages every day. If insurance carriers introduced preventative measures such as arranging for plumbers to inspect plumbing on a regular basis for their customers, issues could be identified and fixed before they become a disaster. This could also apply for preventing electricity fires, roof leaks and other problems. 

Proactive risk management is a popular idea. In fact, 34 percent of people said they would consider switching insurance companies if a company offered preventative loss and protection services. 

How can AI help?

Integrating AI into the insurance industry could save insurers $390 billion by 2030. Whether you realize it or not, AI has already begun to sneak into the insurance industry in the form of tools to enhance customer service. With chatbots, data is recovered more quickly so questions can be answered efficiently. AI is also able to streamline claims management making those returns that much faster to process. 

With the growth of the Internet of Things and smart devices, AI can help with proactive risk management. Already companies are introducing smart water management that can shut off the water in the event of a problem, and smart smoke detectors that identify types of fires and carbon monoxide. 

Many insurers already offer discounts or prevention monitoring for their customers. A number of insurers have partnered with home security companies and offer discounts for customers that install one. Insurers could use that information when underwriting home-insurance policies. The same can be done for car insurance firms that already offer programs that collect and analyze telemetry data about the driver. 

All of these AI forms can be used to collect and analyze data that prevent hazards and add to the prevention of large payouts. 


Providing a proactive approach to the risk management aspect of insurance might be the future of the industry—and getting ahead of the curve is good for insurance companies. Staying ahead of the game can keep your business at the front of the line of innovation, but to do so, you need a strategy. If your company is interested in growing in the proactive risk management sector by integrating AI or traditional methods, you need a good team of people to lead the way. 

At The James Allen Companies, we know a thing or two about the insurance business, having been in it ourselves. We are committed to finding technology specialists who want to accelerate your business into the future. We recruit the candidates who are knowledgeable in AI, risk management, sales and more to make sure your business stays ahead of the trend and is ready to serve your customers. 

Give us a call today to see how we can help your business join the future of insurance. 

Don’t Be a Fool, Don’t Offer a Counteroffer

Don’t Be a Fool, Don’t Offer a Counteroffer

As a business manager, you will have a point in your career when an employee delivers you their resignation letter. Watching an employee leave your company is hard, especially if they’re a good one. 

Resignations are inevitable and there are a lot of ways to handle the situation: argue with them, express your relief, give a counteroffer, or accept their resignation respectfully.

Obviously, expressing resentment or relief at the candidate’s departure is not your best choice, but maybe you’re considering suggesting a counteroffer. Last week, we advised candidates that accepting a counteroffer was not in their best interest, and this week, we want to tell you why even suggesting a counteroffer in the first place is a bad idea. 

Here are a few things you should consider before offering a counteroffer:

Sets a precedent. If you start proposing counteroffers, you have to think about where the buck stops. How many counteroffers are you willing to offer in a year? What employees are worth keeping? By offering one employee a counteroffer, you risk damaging your employer brand with other employees. When you give an employee a raise, a promotion or another perk as a retention measure, other employees who have worked hard will start questioning the value of their work. They may even think about resigning themselves in an attempt to get the same offer.

It’s a temporary fix. A lot of counteroffers include higher compensation, but it’s likely not enough to satisfy the resignee. There’s a pretty good chance the employee isn’t just leaving because they want higher compensation. Most employees leave because of negative work cultures, issues with management, or the workload, not just because they want more money. If a candidate accepts your counteroffer for extra benefits, there is an 80 percent chance they’ll be gone in less than six months because the issues haven’t been addressed. Since it can cost 33 percent of an employees salary to replace them, now you’ve paid them more to keep them on board, it will cost even more to replace them. Save yourself the effort and money and let them leave. 

Everybody can be replaced. Even the best employees can be replaced. When an employee leaves, you have a plethora of options for replacing them. You can promote another current employee with similar skills, a knowledge of your company and a desire to grow in their career, or you can hire someone new. No matter what you decide, you’ll have a position available and you’ll need help getting it filled as soon as possible. By partnering with The James Allen Companies, you can get that position filled quickly with the best candidate possible. No one is irreplaceable, and we can find the candidates that have the right skills, talent and personality to work well at your organization. 


Dealing with an employee resignation leaves you with a lot of options, and proposing a counteroffer is not a good one. Accept the resignation with respect, wish the employee the best and use it as an opportunity to better your employer brand. Resignations are inevitable and if you’re needing to recruit professionals to help propel your business, give The James Allen Companies a call today to see how we can help you. 

Counteroffers are Fool’s Gold

Counteroffers are Fool’s Gold

Searching for a new career can feel like participating in the Gold Rush. You’re out in the wilderness with hundreds of other prospectors with the same objective. It can take weeks or months of hard work to find what you’re looking for. Then you find it—the vein of precious, glittering, yellowish rock. Your dreams have come true.

Perhaps as you pack up to leave and prepare to say goodbye, the wilderness offers you something new—not a gold mine, but a sparkly counteroffer. Would you accept the new terms or keep on with your riches?

Think of it this way: If you struck gold, would you ever give it up? Of course not. So why would you ever give up the job of your dreams? When you turn in your notice and your boss presents a counteroffer—a pay raise, better benefits, access to a company car, you name it—you may think about accepting it. Don’t. Counteroffers are fool’s gold, and you may be sacrificing months of hard work for a temporary boon.

Counteroffers, like fool’s gold, can be tempting. They resemble a legitimate opportunity for progress but are just as misleading as a chunk of pyrite. Here are a few things to consider if you’re extended a counteroffer from your employer.

Their motives. While your managers may frame their counteroffer as a benefit for you, it’s likely their generosity doesn’t run as deep as you’d like to believe. Counteroffers are used as retention tools to keep employees on board. The fact of the matter is, it costs more to replace you than to give you a raise. Forty-two percent of companies offer a counteroffer because they don’t want to spend the money replacing the employee. It can also take months to replace you and in that time, productivity will likely slip, damaging the business’ bottom line. Essentially, offering you a counteroffer is simply for convenience, not to benefit you.

Possible consequences. Did you know 80 percent of people who accept a counteroffer will voluntarily resign or be let go within 12 months? When you turn in your resignation, the trust you had with your employer is tarnished. Seventy-one percent of senior executives say accepting a counteroffer could cause your superiors within the company to question your loyalty moving forward. You now have a target on your back. You’ve expressed an interest in leaving the company—well, be careful what you wish for. If layoffs are needed to keep your business afloat, you’re likely to be the first one on the list.

Your motives. If there is any possibility that you would consider a counteroffer at the time of resignation, you should talk to your managers in advance of interviewing about issues that are causing you concern. It can be a difficult conversation, but it’s necessary. If you’re wanting a raise, a promotion, or a culture change, ask for it before you decide to start your job search. If management denies your request, then you know where you stand. Leaving is now in your best interest. You are free to pursue other career options knowing when you turn in your resignation, any form of counteroffer is hypocritical. Accepting a counteroffer wouldn’t even put a bandage on the wound so don’t fall prey to the fool’s gold. Look forward to the new opportunity with high expectations for career development, advancement and renewed enthusiasm. You accepted the new position for a reason you should remember that reason when presented with a counteroffer.

Do not let the temptation of fool’s gold distract you from an actual gold mine of a fulfilling insurance career. At The James Allen Companies, we believe in prioritizing career and company growth. Candidates’ best interests are served by objectively selecting the best opportunity, and we can help you see past the temptation counteroffers. We offer the guidance you need to make your career transition smooth. Find out more by contacting us today.

The Truth About Independence Day

The Truth About Independence Day

With a thunderous crack, a blinding light and a whiff of sulfur, it begins. 

If your community is like ours, we’ve been celebrating Independence Day for a week or so already. Nightly fireworks shows put on by neighbors shake the air every evening as kids laugh, dazzled by the colored embers above them. 

Despite the noise, it can be peaceful. There’s a feeling of pride in living in a country that celebrates its Independence in such an elaborate way. There’s a feeling of excitement knowing in a couple of days the celebration gets just that much bigger. There’s an anticipation of family barbecues and community fairs that rises in your chest and you can’t sleep, not because the noise keeps you awake, but because you can’t contain the joy. It’s almost Independence Day and what a beautiful day it is. 

The truth is, there is so much more to love about this holiday than the fireworks and the family barbecues. Independence Day is a time to celebrate the history of The United States of America and the men and women who fight to preserve it. 

Since the signing of the Declaration of Independence, our nation has grown from 13 small colonies into a country of 3.79 million square acres of land with expansive deserts, soaring mountains and stunning coastlines. We have become a superpower sitting at the head of global organizations, forming partnerships with countries on nearly every continent. We have become an economic powerhouse with industrial revolutions that changed the course of history. Could our forefathers have imagined such a country all those years ago, we don’t know, but I think they’d be proud.

Independence Day is a time to celebrate how far we’ve come, but even more so, it’s a time to honor those who have fought to preserve the freedom the colonists won two centuries ago. To this day, our military remains the most powerful in the world. Our troops are a dedicated bunch of strong men and women who have given their lives to protecting their families, friends, neighbors and countrymen from forces who want to take away that freedom. They fight for freedom and independence every day and without them, we wouldn’t have the rights we have today. 

We believe honoring our troops is the best way to celebrate the July 4 holiday, so take some time this week to remember them. When you watch your local fireworks show, take the time to recognize those “bombs bursting in air” remind us that freedom isn’t free. Remember that no matter what our nation faces, our flag remains. 

The James Allen Companies would like to say a special thank you to all those who have dedicated their lives to protecting our nation’s freedom. Please have a blessed and safe Independence Day!


God Bless America, 

Sincerely,

The James Allen Companies.