Q1 2023 Insurance Labor Market Study Indicates Continued Growth

Rhea-AI Summary

The Semi-Annual U.S. Insurance Labor Market Study by The Jacobson Group and Aon reveals a robust hiring outlook for 2023, with 90% of respondents planning to maintain or expand their workforce. Key findings indicate that 67% of insurance carriers intend to hire more staff, especially in technology and underwriting roles. Furthermore, 79% of companies anticipate revenue growth, up 6% points from July 2022. Despite challenges including inflation and rising costs, 92% of firms are adopting hybrid work models, with plans for employee office attendance increasing. The study signifies a projected 1.67% rise in employment over the coming year.

Positive

• 90% of respondents plan to maintain or increase staff in 2023.
• 67% of insurance carriers aim to hire more staff.
• 79% of companies expect revenue growth, up 6 points from July 2022.
• 92% of companies offer a hybrid work model.

Negative

• Challenges related to inflation and rising reinsurance costs.
• Volatile equity markets impacting financial stability.

CHICAGO--(BUSINESS WIRE)-- The latest iteration of the Semi-Annual U.S. Insurance Labor Market 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 90% of respondents intend to maintain or increase staff in 2023.

“Overall, recruiting remains challenging and retention is a key focus for 2023,” said Gregory P. Jacobson, co-chief executive officer of The Jacobson Group. “Carriers are adapting to meet evolving business needs, while staying competitive in terms of employee expectations and preferences. The vast majority of insurers plan to continue offering flexible work accommodations, with a quarter of companies sharing most employees remain fully remote.”

“Although the insurance industry is still addressing financial challenges related to inflation, rising reinsurance costs and volatile equity markets, most companies have a positive outlook for revenue growth in 2023,” said Jeff Rieder, partner at Aon and head of Ward Benchmarking. “Insurance companies are expected to continue hiring throughout 2023 to support their growth goals and meet customer service expectations.”

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

• In the next 12 months, 67% of insurance carriers plan to increase staff and 23% plan to maintain their current staff size. Technology, claims and underwriting roles are the industry’s greatest need.
• Seventy-nine percent of companies expect to grow revenue during the next 12 months; this is 6 points higher than the July 2022 study.
• Currently, 92% of companies offer a hybrid work model to their employees. Throughout the next six months, 72% of companies expect their employees in the office at least one day a week, with just 4% expecting employees in the office every day.
• Nearly all roles remain moderately difficult to fill, with technology, actuarial and underwriting roles considered the most challenging.
• If the industry follows through on its plans, we will see a 1.67% increase in employment during the next 12 months.

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

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.

The study’s next iteration will occur in July 2023. 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 more than 50 years, Jacobson has been connecting insurance organizations with professionals at all levels across all industry verticals. Jacobson provides insurance talent solutions to support virtually any human capital need. We offer executive search and an array of staffing services including professional recruiting, temporary staffing and interim experts.

Follow The Jacobson Group on LinkedIn, Twitter and Facebook.

About Aon:

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Our colleagues provide our clients in over 120 countries and sovereignties with advice and solutions that give them the clarity and confidence to make better decisions to protect and grow their business.

Follow Aon on LinkedIn, Twitter, Facebook and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230223005837/en/

The Jacobson Group

Whitney Stephens

+1 (312) 628-0376

wstephens@jacobsononline.com

Aon plc

Andrew Wragg

+44 (0) 7595 217168

andrew.wragg@aon.com

Source: The Jacobson Group

FAQ

What is the hiring outlook for Aon in 2023?

Aon expects a robust hiring outlook, with 90% of insurance firms planning to maintain or increase staff in 2023.

How many companies surveyed by Aon anticipate revenue growth?

79% of companies surveyed expect to grow revenue over the next 12 months.

What roles are most in demand according to Aon's labor study?

The greatest need is in technology, claims, and underwriting roles.

What percentage of companies plan to maintain their current staff size?

23% of respondents plan to maintain their current staff size.

What impact do inflation and reinsurance costs have on Aon?

Inflation and rising reinsurance costs present financial challenges for Aon.