A recent Jacobson Q3 2024 Insurance Labor Market Study reveals that a significant majority of insurance carriers plan to increase or maintain staff levels over the next 12 months. While job growth within the industry is ongoing, the pace remains modest.
Hiring Trends and Industry Priorities
For the first time in the study’s 15-year history, technology roles have been outpaced by other areas in terms of demand. Underwriting and claims positions now hold the top hiring priorities, with technology coming in third. The report highlighted that 52% of companies plan to expand their workforce, consistent with figures from January 2024, while 34% aim to keep their headcounts steady.
Drivers of Workforce Expansion
The main factors fueling this growth are expectations of increased business volume and expansion into new markets. However, 14% of insurers anticipate reducing their staffing, a 4% increase from last year. Automation is cited as the leading reason for these reductions, though none of the respondents plan to cut staff by more than 10%.
Experience and Entry-Level Hiring Needs
Among companies looking to hire, 77% are seeking experienced professionals, while 21% aim to fill entry-level roles, and just 2% are adding executive-level positions. Operations departments show the highest demand for entry-level workers at 62%—a significant rise from last year—followed by claims at 38% and underwriting at 21%.
Executive and Hard-to-Fill Roles
Compliance, loss control, and risk management departments are the most likely to expand executive positions. The study notes that actuarial, executive, and analytics roles remain particularly difficult to fill, indicating a persistent challenge in sourcing specialized talent.
Work Model Preferences and Flexibility
The industry’s approach to work models underscores the importance of flexibility. A notable 72% of companies report operating on a hybrid model, with 38% having employees in the office one to two days per week and 34% requiring three to four days in-office. Only 4% of respondents indicated that most employees work full-time on-site. Importantly, 94% of companies do not intend to adjust their current work models within the next six months.
