Insurers Plan Modest Hiring Growth As Actual Job Gains Fall Short Of Forecasts

Insurance companies continue to project workforce growth even as recent hiring has underperformed expectations, according to a study conducted by The Jacobson Group and the benchmarking division of Aon’s Strategy and Technology Group.

The Q3 2026 Insurance Labor Market Study found that 49% of companies plan to increase staff during the next 12 months, led by the Life/Health segment at 53%. Meanwhile, 11% of companies overall plan to decrease headcount, down from 14% in the July 2025 study.

Small companies (less than 300 employees) are the most bullish on hiring, with 62% planning to add staff, outpacing medium-sized companies (300-1,000 employees) by 3 points and large companies (more than 1,000 employees) by 34 points. Looking back, the total industry headcount grew just 0.21% between July 2025 and July 2026, well below the 1.03% growth rate companies had anticipated a year earlier, according to the study.

Revenue Optimism Cools Slightly

Overall, 78% of companies expect revenue growth over the next 12 months, down 3 points from the July 2025 survey. Commercial Lines P&C companies are the most optimistic, with 84% expecting growth, compared with 75% of Balanced Lines and 65% of Personal Lines P&C companies. Life/Health companies reported 82% expecting revenue gains.

Across the insurance industry, 59% of companies attributed expected revenue changes to shifts in market share, while 22% cited pricing factors, the study said. No companies surveyed expect revenue to decline.

The primary drivers behind staffing increases are an anticipated rise in business volume, cited by 36% of companies, and expansion into new business or markets, cited by 34%. On the reduction side, automation improvements requiring fewer staff was the most common reason companies plan to cut headcount, followed by areas being overstaffed and reorganization efforts.

Technology And Underwriting Roles Lead Hiring Needs

Technology, underwriting and claims roles are expected to see the greatest staffing growth over the next 12 months, according to the study.

Companies are most likely to add experienced staff in analytics, compliance and accounting, while operations and claims are the areas most likely to see entry-level hiring. Actuarial, technology and executive positions remain the most difficult to fill.

Overall, 18% of companies said the ability to hire talent has become more difficult compared with the prior year measured in the July 2025 survey, up from 12% in that survey, while 17% said hiring difficulty has eased. Medium-sized companies were most likely to report worsening hiring conditions, at 27%, compared with 16% of large companies and 15% of small companies. Compared with July 2025, recruiting difficulty decreased in nine of 12 job categories, though actuarial, product management and technology positions saw slight increases in difficulty.

Turnover Declines As Hybrid Work Persists

Employee turnover eased across the board. Twelve-month voluntary turnover stood at 7.6%, down 1.6 points from July 2025, while six-month voluntary turnover averaged 5.3%, 2.3 points below the 7.6% 12-month figure and 0.7 points lower than July 2025. Twelve-month involuntary turnover was 3.2%, down 1.1 points from July 2025, and six-month involuntary turnover was 3.4%, down 0.8 points from July 2025.

Balanced Lines P&C companies reported the highest 12-month voluntary turnover at 9.1%, compared with 7.3% for Commercial Lines P&C and 7% for Personal Lines P&C.

On workplace flexibility, 86% of companies offer flexible hours, and 74% expect most employees to work a hybrid schedule over the next six months. Just 7% of companies require staff in the office every day, down from 8% in July 2025. Looking further ahead, 94% of companies expect no change to in-office requirements after the next six months, while 4% anticipate requiring more in-office time, a shift most pronounced among Life/Health companies at 6%, compared with 3% for P&C companies.

Obtain the full report here. &