Insurance is in need of tech talent: The Jacobson Group

Technology, claims, and underwriting roles are expected to grow the greatest during the next 12 months, according to The Jacobson Group's Q3 2023 Insurance Labor Market Study results. The study, conducted with Aon's Ward business unit, finds that 63% of companies plan to increase staff during the next 12 months, driven by property and casualty (P&C) at 65%. 

"While the labor market appears to be settling compared to last year, recruiting remains difficult and the majority of insurers aspire to add staff," said Gregory P. Jacobson, co-chief executive officer of The Jacobson Group, in a press release statement. "Carriers must be doing everything they can to position themselves as an employer of choice from a compensation, benefits and flexibility standpoint."

Filling positions in technology, executive and analytics roles presents the greatest hiring challenges for the survey respondents. Approximately 17% of surveyed companies reported an increased difficulty in hiring talent compared to the previous year, a notable decrease from the 48% recorded in a survey conducted in July 2022. On a scale of 1 to 10, with 10 representing the highest level of difficulty, respondents rated all positions as at least moderately challenging to fill, with technology positions consistently ranking as the most demanding to source. In total, the industry's greatest need is in technology staff, according to the study.

Commercial lines P&C companies display the highest level of optimism regarding revenue growth, with 84% anticipating an increase, while 75% of balanced lines companies and 54% of personal lines companies share this outlook. Meanwhile, 67% of life and health companies also expect a boost in revenue. The driving force behind companies planning to expand their workforce in the coming year is the anticipated growth in business volume, cited by 47% of respondents as their primary motivation for hiring. Expansion into new markets or business areas closely follows as another motivating factor. Conversely, when it comes to reducing headcount in the next 12 months, the most prevalent factor cited is automation, with reorganization as the second most commonly mentioned cause.

"Many insurers have been challenged over the past year to achieve profit targets due to inflation, weather events and rising loss costs. However, the industry remains very resilient and we still see a high demand for the core claims, underwriting and technology functions," said Jeff Rieder, partner at Aon and head of Ward Benchmarking, in a statement.

Over the next 12 months, large companies are primarily focused on hiring technology staff, with underwriting and analytics roles following closely behind. Medium-sized companies also prioritize technology, followed by analytics. As for small-sized companies, the most pressing need for talent comes from the claims department, with technology roles as their secondary hiring priority. Within the life and health sector, the most prominent areas for recruitment are technology, analytics and sales or marketing.

Carriers are currently operating in a rapidly evolving market, but within a strong and stable talent landscape, according to the Jacobson study. The industry maintains a low unemployment rate, and job openings have remained elevated compared to pre-pandemic levels.