The results from the Q1 2020 iteration of the Semi-Annual U.S. Insurance Labor Outlook Study are now available! Conducted by The Jacobson Group and Aon plc, the study has uncovered the insurance industry’s revenue and hiring trends for 11 years running. We’re highlighting key statistics from the latest results below. You can download the full results summary, recorded webinar and slide deck for additional insights and commentary.
January’s survey showed largely positive staffing expectations: 61 percent of respondents plan to increase staff in 2020, down just 1 point from July 2019. Life and health lines and property and casualty (P&C) balanced lines are leading this effort as 71 percent and 67 percent expect staff growth, respectively. Forty-eight percent of companies planning to add staff expect an expansion of business or entry into new markets. In total, only 8 percent of companies anticipate a decrease in staff this year.
Expectations to grow revenue remain high across the industry, at 77 percent, decreasing just 2 points from our July survey. Seventeen percent of companies expect revenue to remain flat in 2020, unchanged from our July report. Both P&C and life and health companies responded that expected revenue shifts for 2020 will be driven by changes to market share, at 54 percent and 67 percent, respectively.
Across the board, recruitment difficulty is still increasing, fueled by “continued low unemployment, mass retirements and job growth incited by modernization efforts,” according to Gregory P. Jacobson, co-chief executive officer of Jacobson. As in our July 2019 survey, actuarial, technology and executive positions are the most difficult to fill. Nine of the 11 categories measured in the study increased in recruiting difficulty, and accounting surpassed the threshold for moderate difficulty for the first time.
A variety of trends will impact the talent landscape in 2020. However, prioritizing succession planning for long-term success; developing a culture of change to support modernization; and engaging with efforts like the Insurance Careers Movement, which shares why young professionals should consider a career in insurance, can help your organization remain competitive.
While the insurance industry grew 0.72 percent in 2019, versus an anticipated rate of 1.19 percent, we are seeing continued growth. If the industry stays true to its plans for the next year, employment will again increase. To access the latest growth projection, along with additional insights into the labor outlook for the next year, download the full results of the study.