In Connecticut, Number of Insurance Sector Employees Fell Slightly in 2012: Report

November 21, 2013

A report this month from Connecticut’s Insurance & Financial Services (IFS) Cluster and PwC shows there was a slight decline in the number of insurance sector employees in Connecticut last year, primarily due to job losses in office and administrative support functions.

On the other hand, the number of employees in most other occupational categories within the insurance sector — including management, business/finance operations, and sales — increased in 2012 compared to the previous year. The report includes data from property/casualty, health, life and others (fraternal, title, surplus lines and risk retention groups).

The report, titled “the 2013 Insurance Market Brief,” was published on Nov. 12. It says Connecticut insurance carrier full-time employment fell slightly by 1,329 people or 2.6 percent, falling from 50,242 in 2011 to 48,913 in 2012.

Connecticut insurance carrier and related (carriers and others) employment also had a slight decline of 1,154 people or 1.8 percent from 2011 to 2012, falling from 61,583 to 60,429.

The report says that while Connecticut’s insurance employment declines are consistent with the national trend from 2008 to 2011, it is contrary to the national result from 2011 to 2012, which demonstrated a slight employment gain of 15,100 or 1.1 percent.

Connecticut’s insurance employment changes varied significantly by occupation, with the “Office and Administrative Support” jobs falling the most (1,590 or 8.8 percent) and “Sales and Related” jobs increasing the most (120 or 2.2 percent).

The report notes that insurance continues to be a vital sector of Connecticut’s economy. Connecticut ranks first nationally in insurance carrier employment in the state as a percentage of the state’s total employment (3 percent), the state’s insurance payroll as a percentage of the state’s total payroll (5.9 percent), and insurance gross state product as a percentage of total gross state product (8.8 percent).

The report shows Connecticut’s insurance sector provides well-paying jobs. Looking at Connecticut’s occupational wages in the insurance carriers sector, the average annual wage in the “management” category was $139,146, as measured in the 2013 first quarter. The average wage in the “business and finance operations” category was $78,014 while the average wage in the “computer and mathematical” category was $93,043. The average wage in the “legal” category was $120,037 and for the “healthcare practitioners and technical” category, the average wage was $71,625.

Chart: Connecticut Insurance & Financial Services (IFS) Cluster, PwC
Chart: Connecticut Insurance & Financial Services (IFS) Cluster, PwC
Chart: Connecticut Insurance & Financial Services (IFS) Cluster, PwC

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