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Validation of personality and cognitive measures for insurance claims examiners

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Abstract

Claims Examiners are critical for the profitability of large insurance companies. Mistakes in hiring these people can result in improperly processed claims and/or turnover, and this yields negative financial consequences for the company. This paper describes research evaluating the validity of selection procedures for the position of claims examiner at Blue Cross and Blue Shield of Oklahoma. A job analysis indicated that both cognitive skills and personal abilities are necessary for successful performance as a claims examiner. The job analysis also indicated that both subjective and objective criterion measures reflect important aspects of job performance. The criterion data included nine supervisory ratings, employee nominations, average percent of performance, absences, disciplinary actions, and sick leave. In a concurrent validation strategy, we tested a sample of experienced incumbents (N=50) using four cognitive ability tests (Basic Skills Tests: BST) and two measures of personality (Hogan Personality Inventory and PROFILE). Scales from two personality inventories were combined to form the Claims Examiner Inventory (CEI). Scores from the CEI and three of the four cognitive tests correlated significantly with the average percent of performance and six of the supervisory ratings, including the average supervisory rating. In addition to the cognitive measures, the personality measure contributed significantly to the prediction of percent of performance achieved with R=.64. These results are consistent with other research findings that support the use of both personality and cognitive measures as predictors of job performance.

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Arneson, S., Millikin-Davies, M. & Hogan, J. Validation of personality and cognitive measures for insurance claims examiners. J Bus Psychol 7, 459–473 (1993). https://doi.org/10.1007/BF01013759

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