Insurance Industry Poised for Modest Growth Despite Mounting Talent Challenges

Half of insurance companies plan to bolster their headcount over the next year, driven particularly by 65% of life & health insurers with expansion plans, according to a new survey conducted jointly by The Jacobson Group and Aon’s Strategy and Technology Group.

The insurance industry’s overall employment outlook has brightened considerably compared to previous years, the report said. A projected 0.91% increase in insurance company employment over the next 12 months suggests that hiring momentum remains intact across most market segments. Commercial property & casualty companies lead the charge at 1.44% projected growth in staffing, compared with 0.85% growth among P&C personal lines carriers.

Hiring enthusiasm varies significantly by company size and segment, according to the report. Medium-sized insurers (300 to 1,000 employees) are the most bullish, with 61% planning to add staff — a substantial advantage over their larger peers. Smaller companies (fewer than 300 employees) trail, with 51% expecting to increase headcount, a notable decline from 66% expecting staff growth a year prior. Among large companies (more than 1,000 employees) 38% project staff size will increase.

Business expansion and increased volume are the primary catalysts, with 30% of hiring companies citing growing business needs and another 24% citing expansion into new markets, according to the report. The survey found that 72% of companies expect to grow revenue during the next 12 months, 2 points lower than the January 2025 survey.

More telling is where companies plan to invest in talent. Technology roles face the most intense demand overall, followed by claims and underwriting positions, the report said. Among life & health carriers, the hiring priorities shift slightly toward technology and operations functions.

Meanwhile, companies are seeking experienced professionals in compliance, analytics, and underwriting roles, with entry-level positions concentrated in operations and claims functions. Notably, the greatest need for management and executive hires is in technology, the report said.

The Talent Gap Widens for Specialized Skills

Despite overall hiring optimism, securing the right talent has become markedly more challenging. One in five companies report that hiring has become more difficult compared to the prior year — up from 14% just 12 months earlier. The struggle is especially acute in the life & health sector, where 30% of carriers cite recruiting headwinds.

The challenge centers on specialized roles, the report said. Actuarial, executive, and analytics positions remain stubbornly difficult to fill, ranking among the most challenging for the fifth consecutive survey. Product management has experienced a particular spike in recruiting difficulty.

The mismatch between available talent and employer needs creates a bottleneck for carriers seeking to execute their growth strategies, particularly those pursuing technology investments and market expansion.

Work Arrangements and Competitive Advantages

As carriers compete for talent, workplace flexibility has emerged as a key differentiator. Looking ahead, 71% of companies expect most employees to work hybrid schedules over the next six months, with 78% requiring in-office presence at least one day weekly. L&H carriers are more rigid than their P&C counterparts, with 88% requiring weekly office time compared to 76% of P&C companies.

Only 7% of companies require daily office attendance — up from 3% a year ago — suggesting that while some carriers are tightening workplace requirements, the broader industry remains committed to flexible arrangements. Looking beyond the next six months, 95% of carriers expect no changes to current in-office policies, though 3% anticipate requiring greater office presence. L&H companies are more likely to shift toward stricter requirements, with 12% indicating plans to increase in-office mandates.

Obtain the report here. &