Approximately 81% of insurance companies expect to increase their revenue in the next 12 months, but only
about 53% expect to increase their staff in that same period, according to a new insurance labor market outlook study from The Jacobson Group and Aon.
Historical study data shows that the percentage of companies expected to grow staff has stayed largely the same since July 2023.
“In past years, we’d see that the growth and staffing expectations were largely aligned,” said Jeff Rieder, partner at Aon and head of STG Performance Ben
chmarking. “And now we’re starting to see, for the same period now for at least 18 months, that there has been somew
hat of a divergence in terms of the companies expected to grow staff relative to revenue expectations.”
Thirty-three percent of insurance companies expect to maintain current staff levels in the next year, while 14% rep
ort planned decreases, according to the report. Meanwhile, 14% of companies expect flat revenue growth, and 5% forecast revenue decreases.
Approximately 84% of the study’s participants are property/casualty insurance carriers. The twice-annual study strives
to provide an analysis of labor trends and staffing expectations and challen
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ges of the U.S. insurance labor market. The study covers nearly 15% of the insurance market by employees.
“The one thing that is interesting is noting the percenta
ge of companies that are expected to decrease employees during that same period,” Rieder said of the stretch between J
ly 2023 and the most recent study. “Hovering at 14%, we’ve not seen that kind of sustained level near the mid-teen
level since the emergence of the [recession] back in 2010.”
While the P/C industry had strong, sustained premium growth in the previous five years, the study’s findings show premium was very much driven off rate gro
wth rather than true, organic growth in policy count, Rieder explained. Knowing this, companies are now a bit more c
autious when it comes to hiring expectations, and tariff-related uncertainty has perhaps also made companies more cautious, he added.
“We know that for many companies, they’ve been exposed to severe catastrophes, convective storms [and] the wi
ldfires that impacted California [during] the first month of this year as well,” Rieder said. “And when you couple that
with the backdrop of artificial intelligence and technology gains, we’re seeing that, in many cases, this is perhaps tempering the staffing plans and staffing outlook.”