As we move through 2023, insurers continue to face the challenges of a tight labor market. The industry’s unemployment rate remains low and job openings are high, according to the Bureau of Labor Statistics. However, 67% of insurers plan to increase their headcounts this year, according to our recent Q1 2023 Insurance Labor Market Study, conducted in partnership with Aon plc. Despite a looming recession and continued economic uncertainty, carriers have a positive outlook for the remainder of the year in terms of both staff and revenue growth.
Anticipated increases in business volume are the primary reasons for adding staff in the next 12 months, with technology roles remaining the most demand. After technology, the industry’s greatest needs are claims and underwriting staff. Unsurprisingly, technology roles are also considered the most challenging to fill, followed closely by actuarial and underwriting positions. Overall, while recruiting difficulty has eased for some roles compared to last year, the majority remain at least moderately difficult to fill.
Experienced staff continues to be the industry’s greatest need overall, with 72% of respondents sharing they are most likely to hire experienced individuals, followed by entry-level employees (27%), and executives (2%). Entry-level staff is in highest demand within operations (53%), followed by actuarial (40%) and underwriting (38%).
The industry is still adapting to the evolving priorities of today’s talent, with flexibility and virtual work largely influencing this shift. Ninety-two percent of carriers currently offer a hybrid model and 69% offer fully remote work. When asked how often insurers anticipated their staff coming into the office over the next six months, 72% shared they foresee the majority of employees coming in at least one day per week. While specific preferences will vary among individuals, it's important insurers determine the in-office requirements of a role and offer flexibility in hours and location whenever possible.
From a revenue standpoint, 79% of insurers expect to see growth in 2023, with 40% anticipating increases of at least 10%. For many organizations, reaching both hiring and revenue goals will be dependent on their ability to attract and retain the right talent in the current market. To download the full Q1 2023 report or view the results presentation, click here.
The Semi-Annual U.S. Insurance Labor Market Study has collected revenue and hiring projections from carriers across all sectors of the industry since 2009. The next iteration of the survey will take place in July 2023. To be notified when it opens, follow this link.
