Most insurance companies are expecting to see their revenue go up in the next year, but many are not planning to grow their staff at the same pace. According to a recent study by The Jacobson Group and Aon, 81% of insurers expect revenue growth, yet only 53% say they will increase their workforce in the coming 12 months.
This gap between revenue and staff growth has been steady for the past year and a half. In previous years, companies usually hired more employees as their revenue rose, but that trend has changed. About a third of insurers plan to keep their current staff levels, while 14% are actually looking to cut jobs. On the revenue side, 14% of companies expect no growth, and 5% anticipate a drop.
The study focuses mainly on property and casualty insurance firms, which make up 84% of the respondents. These companies have seen strong premium increases over the last five years, but that growth mostly came from higher rates, not more customers. Because of this, insurers are being cautious about hiring. Uncertainty around pricing and losses from recent disasters like wildfires and storms is also slowing down staffing plans.
Technology is playing a big role in this shift. Advances in artificial intelligence and automation are making some jobs more efficient, which might mean fewer new hires. Companies that were hit hard by natural disasters earlier this year are especially careful.
Job openings in insurance have dropped in recent years. There were nearly 400,000 openings in 2022, but that number is expected to fall to just over 300,000 by 2025. In June alone, there were 246,000 openings. This decline points to slower hiring overall.
Different types of insurers are feeling this in different ways. Regional and commercial property/casualty carriers are more likely to reduce staff. For instance, 59% of commercial P/C insurers plan to hire more workers, but 16% expect to cut staff. Personal lines carriers are less likely to reduce jobs, with only 12% planning cuts and almost half aiming to expand their teams. Balanced lines insurers are in the middle, with 7% expecting staff decreases and half looking to add employees.
The biggest need across the industry is for technology workers, followed by people in underwriting and claims. Larger companies are focusing most on tech hires, then underwriting and analytics. Smaller insurers are looking for more claims staff first, then underwriting and tech.
Overall, employment in insurance has stayed mostly steady compared to earlier this year but remains below pre-pandemic levels. Growth is happening mostly among agents and brokers, while the rest of the industry is holding steady or slightly shrinking.
The study shows that while the insurance market is growing financially, companies are being careful about how many people they add to their payrolls. Challenges like natural disasters, pricing uncertainty, and new technology are all shaping how insurers plan their workforces in the near future.