About two-thirds of insurance carriers expect to hire more employees this year, a new survey finds.
According to the semi-annual U.S. Insurance Labor Outlook Study conducted by The Jacobson Group and Ward Group, 66 percent of all insurance companies intend to increase staff in 2015, which the firms say is the highest rate since the survey began in 2009.
In the 2014 survey, nearly 62 percent of companies polled said they intended to increase staff in 2014.
The study looks at trends for both property/casualty and life companies, including national, multinational and regional organizations. It found that 67 percent of property/casualty insurers plan to add employees this year, with 74 percent of commercial P/C companies expecting to increase staff. This is 17 points higher than personal lines P/C companies.
In addition, the Bureau of Labor Statistics has reported the unemployment rate for the insurance industry at 2.3 percent, continuing the recent trend of low industry unemployment. Last year BLS reported the unemployment rate for the insurance industry to be at 2 percent.
“We are seeing a market stabilization and increased confidence in the industry,” says Gregory P. Jacobson, co-chief executive officer of Jacobson. “The result is a leveling-off of staffing and revenue forecasts.”
Carriers say their expectation of an increase in business volume is the primary reason for increased hiring in the next 12 months. Among P/C companies, 88 percent expect an increase in revenue growth, while 2.5 percent expect a drop in revenue during the next 12 months.
Some additional key findings include:
- Nearly 84 percent of all insurance organizations expect an increase in revenue throughout the upcoming year, the fourth highest level since the beginning of the survey.
- Technology, claims and underwriting positions continue to be the most in demand and are expected to grow the greatest during the next 12 months.
- Commercial lines companies have a higher need for underwriters than personal lines companies.
- Companies say that recruiting is slightly easier in most positions than it was a year ago.
- If the industry follows through on its plans, there will be a 1.48 percent increase in industry employment through 2015, creating new jobs.
Source: U.S. Insurance Labor Outlook Study