Labor Study Indicates Strong Employment Outlook for Insurers

Rhea-AI Summary

The Semi-Annual U.S. Insurance Labor Outlook Study from The Jacobson Group and Aon reveals a robust forecast for the insurance industry in 2021. 91% of firms plan to maintain or increase staff levels, with 56% intending to hire. The study notes a shift in expectations, with 67% of insurers predicting revenue growth, an increase of 9 percentage points from six months prior. Recruiting remains challenging, particularly in technology and analytics. Overall, the study anticipates a 0.74% boost in employment in the next year.

Positive

• 91% of firms plan to maintain or increase staff in 2021.
• 56% of companies intend to increase staff.
• 67% of insurers expect revenue growth, a notable increase.
• Planned hiring could lead to a 0.74% increase in employment.

Negative

• 9% of firms plan to decrease staffing, despite a decline from 17% in July 2020.
• Recruiting difficulty persists, especially in technology and analytics roles.

The latest iteration of the Semi-Annual U.S. Insurance Labor Outlook Study, conducted by The Jacobson Group, the leading provider of talent to the insurance industry, and Aon plc, a leading global professional services firm providing a broad range of risk, retirement and health solutions, found 91% of respondents intend to maintain or increase staff in 2021.

“Although the past year has brought on several unique challenges, the insurance industry remains strong,” said Gregory P. Jacobson, co-chief executive officer of Jacobson. “Insurers are more optimistic than they were six months ago and overall, industry staffing plans are not drastically different than prior to the pandemic. While it may be gradual, we can expect insurance employment to continue to rise this year.”

Some of the study’s key findings include the following:

• In the next 12 months, 56% of companies plan to increase staff and 35% plan to maintain their current staff size. Technology, analytics and claims roles are expected to see the greatest growth over the next year.
• While 9% of insurers plan to decrease staff in the next 12 months, this is down from 17% in the July 2020 study. Reorganization is the most common driver behind anticipated staff reductions.
• Sixty-seven percent of insurers expect to grow revenue, up 9 percentage points from six months ago.
• Overall, recruiting difficulty continues; of the 11 functional areas reported on in the study, seven have increased in recruiting difficulty compared to January 2020. Analytics, actuarial and technology roles are currently considered the most difficult to fill.
• If the industry follows through on its plans, we will see a 0.74% increase in employment during the next 12 months.

For more highlights and commentary, download the full results summary and the recorded webcast here.

The insurance labor outlook 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.

The study’s next iteration will occur in July 2021. To be notified when it opens, follow this link.

About The Jacobson Group:

The Jacobson Group is the leading provider of talent to the insurance industry. For nearly 50 years, Jacobson has been connecting organizations with insurance professionals at all levels across all industry verticals. We provide an array of services including executive search, professional recruiting, temporary staffing and subject matter experts. Regardless of the need or situation, Jacobson is the insurance talent solution. Further information is available at jacobsononline.com.

About Aon:

Aon plc (NYSE: AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210223006058/en/

FAQ

What are the key findings from Aon's insurance labor outlook study in 2021?

The study reveals that 91% of firms plan to maintain or increase staff, with 56% planning to hire. 67% expect revenue growth.

How many companies plan to increase staff according to the Aon labor outlook study?

56% of companies plan to increase their staff in the next 12 months.

What percentage of insurers expect revenue growth in 2021?

67% of insurers expect revenue growth, up 9 percentage points from the previous study.

What employment increase is anticipated in the insurance industry?

The study anticipates a 0.74% increase in employment over the next year.

What staffing challenges are highlighted in the Aon labor outlook study?

The study indicates ongoing recruiting difficulties, particularly in technology and analytics roles.