The insurance industry remains steady and positioned for moderate employment growth throughout 2025. Our recent Q1 2025 Insurance Labor Market Study, conducted in partnership with Aon, revealed 88% of carriers intend to increase or maintain their staff sizes in the next 12 months. Meanwhile, the Bureau of Labor Statistics shows 17 consecutive months of job growth for the insurance carriers and related activities sector.
While the industry continues to add jobs, we can expect this employment growth to remain relatively modest. More than half (55%) of companies intend to grow their teams in the next 12 months, up three points from July and January 2024; while 33% plan to maintain their current headcounts. The main drivers for growth are expected increases in business volume followed by expansion into new markets. At the same time, 12% of companies expect a reduction in their workforce—up 2 points from one year ago—with reorganization the most common reason, followed closely by automation and areas being overstaffed. However, just 3% plan to decrease staff by 10% or more.
Technology roles returned as the insurance industry’s greatest talent need after underwriting took the lead in July for the first time in the study’s 15-year history. Following technology positions, underwriting and claims roles are currently in second and third highest demand. Eight out of 10 companies planning to hire say they’re most in need of experienced professionals, followed by entry-level individuals at 16% and executives at 3%. For individuals who are new to the workforce, entry-level positions are most needed within claims (30%), operations (28%) and analytics (19%). Accounting (12%) and technology (9%) are the areas most likely to add executive-level positions.
Compared to January 2024, recruiting difficulty has increased in six of 11 categories, and most positions are considered at least moderately difficult to fill. Actuarial, executive and analytics roles remain the most challenging. Fourteen percent of companies report their ability to hire talent has become more difficult over the past year, up from 11% in July 2024.
Flexibility remains a priority for many professionals, and 75% of companies shared the majority of their employees work a hybrid model (37% one to two days in office; 38% three to four days in office). Twenty-two percent of companies say most of their staff is fully remote (up from 18% in January 2024) and just 3% report most employees are in the office full time (down from 6% reported one year ago). The vast majority (88%) of companies do not plan to make changes to their work models in the next six months. The remaining 11% plan to require more in-office presence, up five points from July.
As you navigate the competitive job market, having a clear personal brand is an essential tool for attracting the right opportunities. If you're looking to differentiate yourself from other candidates, make sure to check out our blog post, "Building Your Personal Brand" to help articulate your unique value and make more meaningful connections throughout your insurance career journey.
The Q1 2025 Insurance Labor Market Study took place from January 13 through February 3, 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.