Q1 2024 Insurance Labor Market Study: Industry Enters Year with Cautious Optimism

Approximately 90% of insurance industry respondents intend to increase or maintain staff size in 2024 says the latest iteration of the Semi-Annual U.S. Insurance Labor Market Study. Conducted semi-annually by the talent search firm The Jacobson Group and Aon plc, the study noted, however, that it may take a good part of the year before companies ramp up their hiring efforts.

“Companies appear to be in more of a holding pattern around staffing plans for the first half of 2024, as they evaluate growth plans and anticipate greater efficiency gains from technology improvements,” added Jeff Rieder, partner at Aon and head of STG Performance Benchmarking.

“The industry’s unemployment rate is stable and just 10% of companies plan to reduce their headcounts this year. However, insurers appear to be operating with a bit more caution in terms of hiring,” said Gregory P. Jacobson, co-chief executive officer of The Jacobson Group. “We’re seeing a shift in how companies are viewing their staffing plans, making the Q1 findings incredibly relevant to insurance leaders.”

Some of the study’s key findings

Over the course of the next 12 months, 52% of insurance carriers state that they plan to increase staff, while 38% plan to maintain their current staff size. Commercial Lines P&C companies appear to be the most optimistic in terms of increasing revenue versus Personal lines. The primary reason companies are expecting to increase their staff is due to an increase in business volume.

Other key takeaways from the study include:

Seventy-seven percent of companies expect to grow revenue during the next 12 months; this is 5 points higher than the July 2023 study.

During the next six months, 76% of companies expect most employees in the office at least one day a week (hybrid). Just 6% require employees in the office every day.

Recruiting difficulty has eased in five of the study’s 11 categories; however, most positions remain at least moderately difficult to fill. Actuarial, executive and analytics roles are the most challenging.

If carriers follow through on their plans, the industry will see a 1.21% increase in employment during the next 12 months.

For those interested in obtaining a free copy of the survey, a copy of the full results and a recorded webcast can be accessed after registering with the company here.

More about the Semi-Annual U.S. Insurance Labor Market Study

The insurance labor market study has been conducted semi-annually since 2009. Collecting revenue and hiring projections from carriers across all sectors of the industry, it provides a valuable look at the insurance labor market outlook and hiring trends.