U.S. insurers want to fill existing positions or expand their staffs over the next year but say they are still having trouble recruiting, even during the COVID-19 pandemic where unemployment has skyrocketed, according to a study from The Jacobson Group and Aon.
About 83 percent of respondents said they will either maintain or increase their staffs over the next 12 months, the study found. But of the 11 functional areas reported on in the study, 8 have experienced more recruiting difficulty compared to one year ago.
“The insurance industry has proven relatively stable in comparison to the overall economy and insurers continue to compete for top talent,” Gregory Jacobson, co-CEO of Jacobson, said in prepared remarks. “Recruiting difficulty has not eased during the pandemic and has even increased slightly for most insurance functions. Though employment will continue to grow in the next 12 months, it will be at a significantly slower pace.”
If the industry follows through on its hiring plans, the next increase in staffing will still be relatively small. Insurance industry staffing will grow at 0.99 percent over the next 12 months if hiring plans stay in place, according to the study.
Respondents said they’ll be most likely hiring more staff in areas such as technology, underwriting and analytics. Factors driving staffing changes include anticipated shifts in business volume and adjustments to areas that are currently over or understaffed.
Just under 60 percent of companies say they are expecting higher revenue growth, 19 points lower than six months ago. Approximately 30 percent of companies expect flat growth, 13 points higher than January 2020.
The Jacobson/Aon Semi-Annual U.S. Insurance Labor Outlook Study has been conducted twice-yearly since 2009. Organizers collect revenue and hiring projections from carriers in every insurance sector, with a goal of providing a valuable look at the insurance labor market outlook and hiring trends.
The study’s next iteration will occur in January 2021.
The Jacobson Group provides talent to the insurance industry. Aon is a global professional services firm.
Sources: The Jacobson Group/Aon
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