Q1 2025 Insurance Labor Market Study Shows Continued Stability
The latest iteration of the Semi-Annual U.S. Insurance Labor Market Study, conducted by The Jacobson Group, a premier provider of talent solutions for the insurance industry, and Aon plc (NYSE: AON), a leading global professional services firm, offers a comprehensive view of hiring trends, employment expectations, and workforce challenges in the insurance sector. The findings indicate that 88% of respondents plan to either increase or maintain their current staffing levels in 2025, demonstrating a steady labor market outlook.
“Employment expectations remain relatively similar to last year,” stated Jeffrey Blair, Senior Vice President of Executive Search and Business Development at The Jacobson Group. “Despite a slight spike in the industry’s unemployment rate, turnover has slowed since last January, and carriers continue to anticipate moderate growth as they move through the next 12 months.”
Recruitment Trends and Hiring Strategies
A key highlight from the study is the shift in recruitment focus towards experienced professionals rather than entry-level candidates. According to Jeff Rieder, Partner and Head of Strategy and Technology Group Performance Benchmarking at Aon, “More companies expect to focus recruiting efforts on experienced staff, rather than hiring entry-level positions. It remains critical for organizations to maintain strong career development and competitive compensation programs to retain and develop talent.” This underscores the industry’s prioritization of talent retention and the need for robust employee development programs.
Key Findings from the Study
Employment Projections for the Next 12 Months
- 55% of insurance carriers plan to increase staff levels, marking a three-percentage-point increase from the figures reported in both the July and January 2024 studies.
- 33% of companies intend to maintain their current workforce size, reinforcing stability in employment levels within the industry.
Critical Roles in Demand
The study identifies technology, underwriting, and claims roles as the most in-demand positions in the insurance sector. These roles are crucial for supporting business operations, enhancing efficiency, and meeting evolving market demands. With digital transformation accelerating, the demand for technology professionals in insurance remains particularly high.
Revenue Growth Expectations
- 74% of companies anticipate revenue growth over the next 12 months, a slight decline of three percentage points compared to the January 2024 study. While the majority still expect expansion, the dip indicates potential economic headwinds or cautious optimism in the face of industry changes.
Workplace Flexibility and Hybrid Work Models
The shift towards hybrid work models continues to shape the insurance labor market:
- 75% of carriers expect most employees to follow a hybrid work schedule over the next six months, balancing in-office and remote work.
- Only 3% require employees to be in the office full-time, emphasizing a continued focus on workplace flexibility and adaptability.
This trend suggests that insurers recognize the benefits of hybrid models in enhancing employee satisfaction, reducing operational costs, and maintaining productivity.
Recruiting Challenges and Role-Specific Difficulties
Recruiting difficulty has increased in six of 11 employment categories compared to January 2024. The most challenging roles to fill remain:
- Actuarial professionals
- Executive leadership positions
- Data analytics experts
The ongoing struggle to secure talent in these critical areas highlights the need for targeted recruitment strategies, competitive compensation packages, and enhanced training initiatives to develop in-house talent.
Projected Employment Growth
If carriers execute their hiring plans as anticipated, the insurance industry is set to experience a 1.08% increase in total employment over the next 12 months. While not a dramatic surge, this growth reflects moderate yet steady expansion in the sector.
Implications for the Insurance Industry
The findings from the Q1 2025 Insurance Labor Market Study highlight several key takeaways for companies and professionals within the industry:
- Talent Retention and Development is Key – With a strong preference for experienced hires over entry-level recruitment, companies must prioritize internal training, career development, and succession planning to build a sustainable workforce.
- Hybrid Work is the New Normal – The continued reliance on hybrid work models suggests that insurance firms must refine their remote work policies, invest in digital collaboration tools, and maintain flexibility to attract and retain top talent.
- Strategic Hiring for High-Demand Roles – Firms must implement proactive hiring strategies for technology, underwriting, and claims roles, ensuring they remain competitive in an evolving job market.
- Addressing Recruiting Challenges – Given the increasing difficulty in hiring actuarial, executive, and analytics professionals, companies should consider upskilling initiatives, mentorship programs, and broader talent outreach efforts to fill these crucial gaps.
The Future of Insurance Employment
The insurance industry remains resilient and adaptable in the face of economic fluctuations and shifting labor trends. With continued investments in workforce development, competitive compensation structures, and technological advancements, insurance carriers are well-positioned to navigate the evolving employment landscape.
For a more in-depth analysis and expert commentary, industry professionals can download the full results summary and access the recorded webcast from The Jacobson Group and Aon.
The Semi-Annual U.S. Insurance Labor Market Study, which has been conducted since 2009, continues to serve as an essential resource for insurance carriers, HR professionals, and industry leaders. By providing valuable insights into employment trends and workforce planning, the study helps organizations stay ahead of labor market shifts and make informed hiring decisions.
