Technology, analytics, claims staff to grow, study

February 16, 2022 7:11 AM

People wearing protective masks sit with their laptop computers in a shared workspace at the Executive Centre co-working office space in Hong Kong, China, on Thursday, April 16, 2020. Whether escaping tiny apartments that aren't conducive to work, or less concerned by a virus that has infected around 1,000 residents compared to more than 110,000 New Yorkers, the surprise result is co-working providers are thriving in Hong Kong, even as much of the world remains in lockdown. Photographer: Paul Yeung/Bloomberg — People wearing protective masks sit with their laptop computers in a shared workspace at the Executive Centre co-working office space in Hong Kong, China, on April 16, 2020.

Product management and technology are the top two areas where companies are looking to hire experienced staff, according to the Q1, 2022 U.S. Insurance Labor Market Study results from The Jacobson Group, a recruiting firm, and Ward Benchmarking, a part of Aon .

Nearly three-fourths, 72%, of companies are planning to increase staff in the next 12 months, according to the study, which investigates the hiring trends happening within the insurance industry. The survey includes responses from small, medium and large life and health insurers, property and casualty insurers and reinsurers.

Jeffrey Rieder, partner and head of Ward Benchmarking at Aon, says the most surprising finding in the study was how many companies plan to add staff.

“With 76% of positions expected to be filled by experienced staff, this will put more pressure on companies to retain staff,” says Rieder. “For technology, the impact is even greater. Only 13% of positions filled are expected to be entry-level.”

The primary reason companies plan to increase staff is related to an increase in business volume. Over half, 60%, of companies listed that as the reason to hire staff followed by being understaffed.

Companies responded that most positions are still moderately difficult to fill. The positions most difficult to fill include technology, actuarial and analytics roles, which are also the roles expected to see the most growth in the next 12 months, according to the study.

“Technology is the area most likely to increase staff for large companies, followed by underwriting and analytics,” the study states. “Medium-sized companies are looking toward technology then analytics in the next 12 months. After technology, small companies have the greatest need in claims.”

The industry has hit a record number of job openings as candidate expectations and recruitment challenges have increased. However, if companies follows hiring plans there will be a 1.84% increase in employment across the industry in the next 12 months.

Other findings to note include the following:

Only 3% of companies are planning to decrease the number of employees, which is down from the July survey where it was 7%. A quarter, 25%, of companies plan to maintain current staff.

Almost half, 49%, of companies have added staff since January 2021, 20% of companies have reduced staff.

19% of companies plan to increase the use of temporary employees in the next 12 months, the highest point in the history of the study.

82% of companies expect to grow revenue over the next 12 months, which is four points higher than the July survey results. 83% of commercial lines companies expect to increase growth and are optimistic about revenue, 82% of personal lines companies.

Nearly, three-fourths, 71%, of companies report that change in market share is driving potential revenue changes, while 20% suggest pricing factors.

Just under half, 45%, of companies report the option of full-time remote work for employees when offices reopen or if they have reopened from the COVID-19 pandemic. 89% report a hybrid model option that allows staff to work from home and in the office. Only 4% report no change.

Kaitlyn Mattson

Managing Editor, Digital Insurance