The results of our Q1 2026 Insurance Labor Market Study are in and point to ongoing stability for 2026. Conducted in partnership with Aon’s Strategy and Technology Group, this semi-annual study is now in its 17th year and collects data on carriers’ hiring and revenue expectations for the next 12 months.
For 2026, the industry is expecting modest growth with 50% of companies intending to expand their teams. Forty-three percent plan to maintain their current headcounts, which marks a 15-year high and is up 10 points from July 2025. This is primarily driven by expected increases in business volume, followed by expansion of business or new markets. Just 7% of companies expect to decrease staff this year—which is down 7 points from July. Automation, reorganization and overstaffed areas are the primary reasons for these planned reductions.
As the industry continues to scale technology and AI capabilities, it’s not surprising technology roles remain the insurance industry’s top talent need overall. However, small companies are most likely to hire for claims and underwriting, followed by technology. Seventy-three percent of carriers shared they’re most likely to hire experienced talent, followed by entry-level individuals at 25% (an increase of 5 and 7 points from July 2025 and January 2025, respectively) and executives at 2%. Entry-level positions are most in demand within operations (46%), claims (33%), and loss control and sales/marketing (tied at 29%). Carriers are most in need of executive-level talent within technology, at 10%.
The study also found that recruiting difficulty has slightly eased for carriers in every category compared to last January. However, most positions are still considered at least moderately difficult to fill, with actuarial, executive and analytics roles remaining the most challenging for the fifth consecutive study. Retention continues to be a priority for carriers, with voluntary turnover down 0.4 points compared to January 2025.
Although there’s attention on companies bringing employees back into the office full time, flexible schedules and hybrid work remain common within the insurance sector. Just 7% of carriers say the majority of their staff is expected in the office every day and 71% of insurers continue to offer a hybrid model. In the next 6 months, 3% of insurers expect to require employees in the office more frequently, while 2% plan to require employees in the office less. In addition to flexibility around work location, 80% of carriers offer flexible work hours.
As the industry evolves, insurers are seeking more specialized talent and exploring how to incorporate technology and AI into a variety of functions. To stay relevant, ongoing skill development is essential. Read our blog post, "10 Skills to Future-Proof Your Insurance Career" for a few skills that have a large impact at all career stages. If you’re looking to make a career move in 2026, check out our post on effective resumes.
The Q1 2026 Insurance Labor Market Study took place from January 13 through February 1, with participation from insurance carriers across all industry sectors. For more insight on the industry’s hiring plans and additional labor market trends, view the full report.