Q3 2023 Insurance Labor Market Results: Majority of Insurers Adding Staff

Posted by The Jacobson Group

The insurance industry’s 12-month hiring outlook is bright. Unemployment remains low at 1.4% and job openings are abundant, according to Bureau of Labor Statistics’ data. As we move through 2023, the insurance talent landscape is strong and stable. Our recent Q3 2023 Insurance Labor Market Study, conducted in partnership with Aon-Ward, found the majority of insurers plan to add staff and increase revenue in the next year.TCC - Q3 2023 Labor Study Blog-01-1

Sixty-three percent of insurers expect to add to their headcounts and 27% plan to maintain their current staff sizes. The most common reason for this anticipated growth is an increase in business volume, followed by expansion of business/new markets. Technology roles are the most in demand industrywide, followed by claims and underwriting positions. All functional areas are considered at least moderately difficult to fill, with technology being the most challenging. However, recruiting difficulty has eased in the past year for seven of the 11 areas surveyed.

Experienced staff continues to be the industry’s greatest need overall, with 78% of respondents sharing they are most likely to hire experienced individuals, followed by entry-level employees (20%), and executives (1%). Entry-level staff is in highest demand within operations (48%), followed by claims (27%) and underwriting (23%).

The vast majority of insurers are continuing to offer flexible work options and just 4% of companies expect the majority of their staff to be in the office every day. Ninety-two percent of carriers currently offer a hybrid model and 68% offer fully remote work. Through the end of the year, 65% of carriers expect the majority of employees to be in the office at least one day per week, down from 72% in January 2023. Thirty-two percent of carriers shared they expect the majority of employees to be fully remote, up from 25% at the beginning of the year. For those companies offering a hybrid work option to employees, 73% consider employee input when determining the days required in office.

As the industry comes out of “the Great Reshuffle” and insurers determine their plans for moving forward – whether that’s remaining remote or asking employees to return to the office – professionals have a lot to consider when contemplating future moves and long-term career plans. If you’re considering a career move in today’s market, or just looking to hone your current skills, view this recent post, “Taking Charge of Your Professional Development.”

The Q3 2023 Insurance Labor Market Study took place from July 10 through August 6, 2023, with participation from insurance carriers across all industry sectors. The semi-annual survey collects and examines data on insurance industry hiring, as well as revenue trends and projections. For more insight on the industry’s hiring plans and additional labor market details, view the full report.