About 62 percent of insurance companies polled said they intend to increase staff in the next 12 months, according to the latest U.S. Insurance Labor Outlook Study conducted by recruitment firm The Jacobson Group and insurance and professional services firm Aon.
The most likely area of insurance job growth is in technology area. The likelihood of companies increasing technology staff is the highest it has been in the last six years, according to the report that analyzes responses from 82 companies.
At the same time, technology jobs are the most difficult to fill, along with actuarial and executive positions.
Meanwhile, the Bureau of Labor Statistics reports the unemployment rate for the insurance industry is 1.6 percent, which is significantly lower than the national average, 3.7 percent.
“Insurers plan to continue growing their staffs to accommodate increases in business volume and expansions into new markets, similar to January’s iteration of the study,” says Gregory P. Jacobson, co-chief executive officer of Jacobson. “However, the candidate’s market perseveres, fueled by mass retirements, job growth influenced by modernization efforts and virtually non-existent industry unemployment.”
The study found most vacant positions are still moderately or significantly difficult to fill, with eight of 12 categories increasing in recruiting difficulty compared to July 2018.
While a forecasted increase in their business volume is the leading reason insurers cite for hire staff, automation will be the primary driver behind reductions in staff in the next year.
The total industry workforce grew 1.31 percent in the last year versus an anticipated rate of 0.6 percent. If the industry follows through on its plans, it will produce a 1.34 percent increase in industry employment during the next 12 months, the study says.
Also, according to the poll, 79% of companies expect an increase in revenue growth, the same as six months ago, while 17% of companies expect flat revenue growth, up one point from January 2019.
The study ran from July 16 through August 7, 2019.
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