Insurance Labor Survey Shows Slowing
A new industry survey finds 78% of U.S. insurers expect modest revenue growth, with 49% planning to increase staff.
A new labor market study shows 78% of U.S. insurers expect modest revenue growth in the next year. About half, or 49%, plan to increase their staff.
However, according to Jeffrey Blair, senior vice president at The Jacobson Group, many companies are "hiring to backfill key positions and bring in new talent, rather than hiring for growth, given revenue expectations." The executive search firm conducted the study with Aon in the third quarter.
Hiring Plans and Reasons
The survey found 11% of carriers plan to decrease staff. This is up from 7% in January but down from 14% a year ago. About 40% plan no staff changes.
Carriers adding staff cite expected business volume increases (36%) or business expansion into new markets (34%) as primary reasons. The most common reasons for reducing staff are automation, followed by overstaffing and reorganization.
Optimism varies by sector. Commercial lines property/casualty insurers are most bullish.
| Sector | Percentage Expecting Revenue Growth |
|---|---|
| Commercial Lines P/C | 84% |
| Personal Lines P/C | 65% |
| P/C Insurers Writing Both | 75% |
| Life/Health Companies | 82% |
In a similar report from January, 72% of companies expected revenue growth.
Turnover Trends and Challenges
The study reveals a drop in voluntary employee turnover. The average six-month voluntary turnover rate was 5.3%. This is 2.3 points lower than the 12-month average of 7.6%.
The average six-month involuntary turnover was 3.4%, slightly higher than the 12-month average of 3.2%.
Jeff Rieder, head of Aon's Performance Benchmarking, Strategy and Technology Group, noted this trend has mixed effects. "Lower employee turnover, both voluntary and involuntary, is a positive trend that may indicate more stability for carriers but also make recruiting for certain positions more challenging if incumbents are not actively looking to leave their current employer," he said.
Technology, underwriting, and claims roles remain the industry's greatest need, according to the report.
A separate Bloomberg analysis of federal data projects declines for some finance industry support roles, including insurance claims processors, over the next decade, partly due to artificial intelligence.
The Jacobson/Aon survey participants represented about 10% of industry employment. Most were from the property/casualty sector (79%), followed by life and health insurers (21%). The average number of employees per participant was 1,807.
