Insurance Company Growth in the Next Year — A Mix of Good & Bad

The Jacobson Group and Aon recently released a labor market study of insurers. It found that 77% of carriers expect to increase revenue in the next 12 months. However, 21% think growth will stay flat and 2% think they’ll see a drop in revenue.

Of those same carriers, 52% say they’ll likely increase staff in that same time period. Just 10% plan to decrease staff size and 38% say they’ll maintain current levels.

Greg Jacobson of The Jacobson Group said those numbers look good but — not counting 2020’s lost COVID year — these are the lowest numbers the industry has seen since 2012.

“So, there’s been a significant change in thought process as it relates to companies looking to expand their hiring,” Jacobson said. “And it’s slowed down fairly significantly. That said, this does not mean — and we have not seen this — that there are going to be mass layoffs that are going to be impacting the industry.”

This is the 15th year of the Aon and Jacobson Group labor study and it covers about 275,000 employees — or about 17% of the market.

Jacobson said layoffs have affected the insurance industry the last couple of surveys and said the 10% of companies thinking they’ll shed some staff this year is a concern.

“I think that overall, what this is saying is that there’s a significant pause, at the very least, in terms of the amount of growth that’s going to be taking place in the industry,” he said. “But not necessarily mass layoffs, as 38% of companies are planning on just keeping the same number of staff that they had over the last 12 months.”

To keep things in perspective, in the 2022 survey, 67% of companies said they would be increasing staff but just 54% actually did. Jacobson said that’s a bigger number than we’ve seen in the past.

Here are more figures from the study:

  • Carrier employment in the U.S. has now reached 1.625 million
  • That’s down 4,000 jobs from August of last year
  • However, last month the number of employees in insurance altogether hit 3 million
  • The Bureau of Labor Statistics (BLS) said there were 344,000 job openings in finance and insurance in 2023
  • That’s a drop from the 445,000 openings in December of 2022
  • 16% of companies say they’l reduce their temporary staff in the next 12 months
  • Just 8% say they’ll increase their temporary staff

Source link: Insurance Journal —

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