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Digital EditionInsurance Industry Forecasts Strong Growth and Hiring In Next 12 Months
The insurance industry is set for a transformative year, with 79% of companies expecting revenue growth and over half planning to increase staff in the next 12 months, according to a recent labor market study by Jacobson Group and Aon’s Strategy and Technology Group.
This growth is driven by anticipated increases in business volume, expansion into new markets, and a need to address understaffing, signaling a dynamic period for insurers across various segments of the industry, according to the report.
Projections indicate 0.58% growth in insurance jobs overall in the next 12 months, signaling a stable and expanding market for insurance professionals. Leading this growth is the life & health (L&H) segment, which is anticipated to experience a 1.49% increase in employment opportunities, while property & casualty (P&C) is expected to see a 0.26% increase in employment.
Across the industry, a majority of insurance companies are gearing up to expand their workforce.
An impressive 52% of firms have indicated plans to increase staff in the coming year, while 34% expected to maintain their size and 14% project a decrease in staff, according to the report. This outlook is particularly pronounced among smaller insurance companies, with 64% of these firms expecting to add new employees. This figure significantly outpaces the hiring intentions of their medium (52%) and large (41%) counterparts, highlighting a potential shift in growth dynamics within the industry.
The L&H segment is showing particular enthusiasm in its hiring plans, with 69% of companies in this sector looking to increase staff, up from 56% a year earlier. This aligns with the segment’s projected growth and suggests a bullish outlook for professionals in this field.
Among P&C companies, 51% expect to increase staff, down from 65% surveyed a year ago, the report noted.
Several key factors are influencing insurance companies’ decisions to expand their workforce. Topping the list are expectations of increased business volume and plans for expansion into new markets, with both factors cited by 38% of companies as primary drivers for hiring. This indicates a generally optimistic view of the industry’s growth prospects and a strategic focus on market expansion.
Another significant factor prompting hiring decisions is the need to address understaffing in certain areas, mentioned by 24% of companies.
Revenue Growth and Market Dynamics
A majority of companies expressed optimism about their financial prospects. Some 79% of insurance professionals anticipate an increase in revenue over the next 12 months, marking a 7-point rise from the prior year and reflecting a growing confidence in the sector’s economic resilience.
Leading the charge in this optimistic forecast are balanced lines P&C companies, with 90% expecting revenue growth, while 80% of commercial lines P&C insurers forecast revenue growth. Among personal lines P&C insurers, that figure falls to 71%, and 75% of L&H companies expect increased revenue.
When examining the drivers behind these positive revenue projections, two key factors emerge. The primary catalyst, cited by 52% of companies, is an anticipated change in market share. This suggests that many insurers are banking on strategic initiatives to capture a larger slice of the competitive insurance pie. Following closely, 39% of firms point to pricing factors as a significant contributor to their expected revenue changes, indicating a delicate balance between market dynamics and pricing strategies in the industry’s growth equation.
Workforce Challenges and Adaptations
The insurance industry continues to face significant challenges in attracting and retaining top talent. Actuarial, executive, and analytics positions remain the most difficult to fill, highlighting the ongoing demand for specialized skills in the sector. However, the overall hiring landscape appears to be improving. Only 11% of companies report increased difficulty in hiring compared to the previous year, down from 17% in the July 2023 survey.
Underwriting, claims, and technology roles expected to see the greatest growth in the next 12 months. Notably, for the first time in the study’s history, technology is no longer the most in-demand area overall, signaling a shift in industry focus.
Hiring priorities vary across company sizes and segments. Large companies are prioritizing underwriting roles, followed by technology and claims. Medium-sized firms are focusing on analytics and technology, while small companies are primarily seeking claims and underwriting professionals. In the L&H segment, technology and sales/marketing positions are most in demand.
Evolving Workplace Models
The insurance industry has embraced hybrid work models, with 72% of companies expecting most employees to work a hybrid schedule in the coming months. This shift reflects a broader trend toward flexible work arrangements, although variations exist across company sizes and segments.
Interestingly, only 4% of companies now require staff to be in-office every day, down from 6% in January 2024. Commercial lines P&C companies are leading the charge in remote work, with 30% allowing the majority of employees to work remotely full-time, significantly higher than balanced lines (10%) and personal lines (7%) companies.
Looking ahead, 6% of companies anticipate requiring employees to be in-office more frequently after the next six months. This trend is more pronounced among smaller firms, with 13% of small companies expecting to increase in-office requirements, compared to just 2% of large companies.
View the full survey here. &
