Our recent Q3 2026 Insurance Labor Market Study, conducted in partnership with Aon, reflects a relatively stable industry as we move through the second half of 2026. Both 12- and 6-month turnover has eased, and modest growth is expected over the next year.
July’s study found 89% of insurance carriers plan to add or maintain staff in the next 12 months, compared to 87% in Q3 2025. However, the percentage of insurers that intend to increase their headcounts is 4 points lower than one year ago, at 49%. Just 11% expect to decrease staff, down from 14% one year ago. Of the companies planning to expand their teams, the primary drivers are an anticipated increase in business volume (36%) and expansion of business/new markets (34%). Among those planning staffing reductions, automation remains the primary reason, followed by overstaffing and reorganization.
Technology, underwriting and claims roles continue to be the industry’s greatest hiring needs. Among the companies planning to hire in the next year, one-fifth are most likely to hire entry-level roles – down 5 points from Q1 2026, but consistent with one year ago – and 78% are most likely to hire experienced talent. Companies are most likely to add experienced talent in analytics, compliance and accounting, while operations and claims remain the areas most in need of entry-level talent.
Recruiting difficulty eased in nine of 12 job categories compared to one year ago, though most roles remain at least moderately difficult to fill. Actuarial, technology and executive positions continue to comprise the roles considered the toughest to staff. Actuarial and technology also saw slight upticks in difficulty since last July, along with product management. Overall, 18% of companies report hiring has become more difficult over the past year, compared to 12% in July 2025.
Retention trends point in a positive direction and may indicate added stability for carriers throughout the coming year. Twelve-month voluntary turnover sits at 7.6%, down 1.6 points from July 2025, while six-month voluntary turnover dropped to 5.3% from 6%. Involuntary turnover eased as well, down 1.1 points on a 12-month basis and 0.8 points on a six-month basis compared to last year.
Workplace flexibility remains the norm across the industry, with 86% of companies offering flexible work hours and just 7% requiring staff in the office every day, down slightly from 8% in July 2025. Looking ahead, 74% of companies expect most employees to work a hybrid schedule over the next six months, and the vast majority (94%) do not anticipate changing their in-office requirements in the near future.
From a revenue standpoint, 78% of insurers anticipate growth over the next 12 months. Although this is 3 points lower than last July, none of the companies surveyed expect a decline. As in previous studies, change in market share remains the leading driver of expected revenue growth, cited by 59% of respondents. Commercial lines property and casualty companies report the highest confidence in revenue growth at 84%, followed by life and health companies at 82%.
While overall retention is improving, the demand for qualified talent within specialized roles is unlikely to ease. Being intentional and future-focused in building your talent pipeline and continuing to invest in upskilling current employees will be essential moving into 2027. To download the full Q3 2026 results summary and view the results presentation, click here.
The Semi-Annual U.S. Insurance Labor Market Study has collected revenue and hiring projections from carriers across all sectors of the industry since 2009. The next iteration of the survey will take place in January 2027. To be notified when it opens, follow this link.