Importance of Background Screening in Insurance Business
The insurance industry is currently facing a lot of talent crisis because the 30% previous talented and experienced staff is retiring in 2020. With its huge staff saying goodbye to the industry there are more than 4,00,000 positions to be filled by 2020. Not to forget that in a recent survey it was revealed that 73% applicants lie in their resume so this is where the importance of Background screening in Insurance Business comes into the picture where we know that the percentage of people who lies in their CV is so high that the possibility of just relying on the resumes is thereby eliminated here. Background screening thus becomes necessary and need of the hour for the Insurance Business in order to ensure smooth functioning of the industry.
Before we discuss the importance of Background screening in Insurance Business, we first need to know what exactly happens in Background Screening?
So, what exactly is Background Screening?
It’s a procedure by which the background of the person is checked. History of the person is seen and how true is it is to be verified in this process. There are various methods of doing it. From the person’s educational qualification to the previous workplaces (if any) is thoroughly seen and verified with the documents that the applicant has provided with its resume or told about during the personal interviews.
Here are the 7 importance of Background screening in Insurance Business
1. Verifying the identity
Verifying the identity is one of the most important steps in ensuring that the person you are hiring is registered everywhere and have no history of any offences. This allows the business to confirm the details mentioned by the potential employees and it includes various things from name to house address, citizenship status, educational qualifications and various other documents that are considered important to know about the individual. It not only makes sure that the details that the applicant mentioned is whether true or not but how honest the applicant is in the initial step will also be measured by this very step. It will make sure that the particular individual is reliable or not in the long run and can he or she be the person that the organization can invest its trust. Verifying the identity is thus a very important step.
2. Checking the government licenses that have been issued
Checking the government licenses that have been issued is yet another important step which can not be eliminated in the procedure of background screening. To see how many government licenses or the documents person has is also very important. The more government-issued documents the applicant will have, the more reliable he or she can be. Government licenses ensure that the person is a responsible citizen and knows the importance of doing certain things at right time. He or she values the concept of time and does not take things lightly. The more the government license or document the person will have the more trustful and verified his or her data is usually considered. Thus, the benefits of having government-issued documents are not only restricted to the exemption from the punishments but also in various other sectors.
3. Checking the credit history
Credit history is the record of borrower’s responsible repayment of debts. A credit report is the record of borrower’s credit history from where the person has borrowed the money. Basically, the sources which can be a bank, collection agencies, government and the credit card companies. For the background screening companies, it is essential to know the credit history of the person to know how much person is responsible with the finances and this becomes even more important if the person is to be hired for the position of handling finance or has to deal with company funds. Credit history let the organization know if the person is reliable enough to trust with money matters or will he just manipulate the company funds for the personal gains. It is very likely in a situation where a person does not have a good credit history record so the organisation just needs to be sure on multiple levels before hiring the right candidate.
Here are some more points to add in our list of Importance of Background Screening in Insurance Business
4. Verifying motor vehicle record
Verifying the motor vehicle record is necessary especially when the individual is required to drive the company-owned vehicle. It is also made sure that the person has no previous records of DUI which is known as driving under the influence. Verifying motor vehicle records not only ensure that the person follows safety measures but it also tells how good the person is with road sense and if he or she can drive well. It states if the person knows about road safety and is responsible enough to follow all the rules and regulations which are set by the government when you are driving a vehicle on the road. It is important to step for the background verification companies and it is to be made sure that they do not skip it.
5. Verifying from references
Here comes another important step that is, verifying from the references. After all the steps are thoroughly followed this one becomes important in the league as previously all the steps were the things that have to be done by the background company itself but this one the background screening company has to do with the help of someone. The references are important as they play a very crucial part in the end result. A lot can change when the references come into the picture as they know the applicant personally so it becomes important to step in determining the character of the person and how fruitful can they be and this can all be done with the help of references. Verifying from references is thus considered another very important step and it must not be eliminated in the procedure of background checks.
6. Checking criminal records
Checking criminal records is very important to maintain the overall safety of the premises and to take care of the other employees present in the office. As an organization, it becomes the fundamental duty of it to make sure that it provides the safe environment to its employees and make sure that they do not end up hiring someone who has been a sexual offender or a murderer or just any other criminal. The situation is then very unlikely for any company and its not advisable for the companies to hire the criminals. It directly affects the safety of the company and all the people around him is at risk including the company itself because if anything bad will happens it will ruin the company’s name in the market and further do damage to its goodwill.
7. Drug screening
Drug screening is the process by which the potential drugs are identified and optimized before the selection of the candidate. The procedure includes that the health care professional will take a blood sample from the vein in the applicant’s arm with the help of the needle. The small amount of blood is thus collected in the test tube or vial. The whole procedure takes less than 5 minutes but is very essential. Drug screening is another important step to make sure that the person you are hiring is not addicted to any substance and if the person is found to taking the substances it is advisable to not consider his application for the job. There are various negatives associated with the person who consumes drugs or any such substance not just for the individual but it does hamper the growth of the company as well which will, later on, affect the profits.
Here we end our blog on the Importance of Background Screening in Insurance Business. The advantages of background screening are not limited to these points only but there are more reasons to get the background check done of the applicant especially in a sensitive business like these.
If you have read the blog till here, we would like to presume that you liked our blog so please do not refrain yourself from sharing the same with your company, bosses or even colleagues (for the awareness).
Thank you!
Your way of describing the whole thing in this post is truly good, every one can simply know it, Thanks a lot. Violetta Berty Orva
Some really nice and useful info on this internet site, too I conceive the style and design has wonderful features. Lela Aron Mechelle
If some one needs expert view on the topic of running a blog then i recommend him/her to visit this web site, Keep up the fastidious work. Benedetta Judd Slayton
Wow! Finally I got a website where I can really obtain useful information concerning my study and data. Oralie Obie Abbotsun
I have been surfing online more than 2 hours today, yet I never found any interesting article like yours. Lisabeth Dannel McMullan
Wonderful article! We are linking to this great post on our site. Keep up the great writing. Christin Kerk Leonteen
I truly enjoy examining on this web site , it has great articles . Tessy Agustin Huoh
Just wanna tell that this is invaluable , Thanks for taking your time to write this. Linnet Brucie Elisabet
There is certainly a lot to learn about this topic. I really like all the points you made. Farrand Ernst Bjork
Every weekend i used to pay a visit this website, because i wish for enjoyment, as this this website conations really pleasant funny information too. Glori Neel Norvell