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US insurers expect modest growth as hiring shifts to backfills

A new Jacobson Group and Aon labor market study finds 78% of carriers forecast modest revenue growth, while staff adds hinge more on expected volume increases than broad expansion plans.

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More than three fourths of U.S. insurers, 78%, expect modest revenue growth over the next 12 months, and about half, 49%, plan to increase staffing, though much of that hiring is framed as backfilling key roles rather than expanding for growth, according to commentary from Jeffrey Blair at The Jacobson Group tied to a third quarter labor market study with Aon.

The survey shows 11% of carriers plan to decrease staff, up from 7% in January but down from 14% a year earlier, leaving about 40% expecting no net staff additions or cuts. Among companies that plan to add workers, the most common reasons are expectations for higher business volume, 36%, and expansion of business or entry into new markets, 34%.

Commercial lines property and casualty carriers are the most optimistic, with 84% expecting revenue growth, compared with 65% of personal lines property/casualty insurers and 75% of carriers writing both commercial and personal lines. Life and health insurers also show optimism, with 82% expecting revenue increases.

The study also points to labor churn, with average six month voluntary turnover at 5.3%, 2.3 points lower than the 12 month average of 7.6%, and six month involuntary turnover at 3.4%, slightly higher than the 12 month average of 3.2%. Aon’s Jeff Rieder said lower turnover could mean more stability but may make recruiting for some positions more difficult if fewer employees are actively leaving, while the report identifies technology, underwriting, and claims roles as the greatest talent need.

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