The insurance industry is approaching 2024 hiring plans with a sense of cautious optimism. The labor market is stable with steady, low unemployment and there has been a noticeable decrease in voluntary turnover. Our recent Q1 2024 Insurance Labor Market Study, conducted in partnership with Aon plc., found a majority of carriers intend to increase or maintain staff sizes this year.
Insurers are taking a more conservative approach to staffing this year. Our survey revealed 52% of companies intend to increase headcounts (compared to 67% in the January 2023 study), while 38% plan to maintain current staffing levels. The most common reason for workforce growth is an expected increase in business volume, followed by expansion of business/new markets. Only 10% of companies plan to reduce staff – a figure fairly consistent with previous studies and thankfully not indicative of mass layoffs. Efficiency gains from technological advancements is the primary catalyst for planned downsizing.
Though fewer companies are anticipating staff growth this year, hiring still proves challenging for the insurance industry. Companies responded that nearly all positions are at least moderately difficult to fill with actuarial, executive and analytics roles being the most formidable.
Looking ahead, insurers anticipate their greatest staffing need to be experienced professionals (72%), followed by entry-level employees (27%) and executives (1%). Entry-level staff is projected to be in highest demand across operations (51%), claims (40%), and actuarial (35%).
Insurers are continuing to fine-tune their policies to strike the right balance between remote and in-person work arrangements to best meet their company’s individual needs. During the next six months, 76% of companies are adopting a hybrid work model for their teams, expecting the majority of their employees to work in the office at least one day a week. Notably, 6% of companies are now mandating their staffs to be in-office every day, a slight increase from the 4% reported last January. The study also found 16% of organizations plan to adjust their approaches later this year to require more in-office presence from employees.
Despite the expected slowdown in staffing growth, there are still ample opportunities available within the insurance sector. Professionals can proactively prepare now to quickly seize new job prospects aligned with their personal preferences and career aspirations. If you are contemplating a move in today’s market, view 7 Proven Tips to Supercharge Your Resume to make a stellar first impression.
The Q1 2024 Insurance Labor Market Study took place from January 8 through January 29, 2024, with participation from insurance carriers across all industry sectors. The semi-annual survey collects and examines data on insurance industry hiring, as well as revenue trends and projections. For more insight on the industry’s hiring plans and additional labor market details, view the full report.
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