New study provides insights
Adam Schwebach of Gallagher Re, Lisa Miller, and Steve Farmer of Brown & Brown address FSU risk management students, September 15, 2022
Those of us in the insurance business (or frankly just about any business these days!) knows how tough it is to attract and retain employees. A new report shows we’re not alone. In fact, insurance companies can’t hire fast enough to replace the workers that they are losing in this topsy-turvy economy. We all bear a responsibility to help recruit for this industry that we invest so much of our time and energy in.
I had the pleasure last week of taking part in the Brown & Brown series panel at the FSU College of Business, along with Steve Farmer of Brown & Brown and Adam Schwebach of Gallagher Re. We spoke to 110 students in the risk management and insurance program. Steve explained how an insurance broker works for and with the customer but that it’s not just sales. It also involves analyzing claims and data. Adam explained what reinsurance is all about and that it’s a great career, as people always need insurance, and stressed that it’s a great people business. I urged each student in the room to search online for current insurance job openings, note the titles and descriptions used, and make sure their studies are suited toward that for resume building. Most importantly, I said, “Figure out what you want to do!” (You can watch Steve, me, and Adam each respond to Dr. Brad Karl’s question: “What makes you so passionate about the industry?” at this link, which will take a few seconds to load.)
As we just noted in the previous story, the national unemployment rate is 3.7% and Florida’s rate is 2.7%. The rate for the US insurance industry is 2.1% according to the third-quarter 2022 Insurance Labor Market Study by The Jacobson Group and Ward. Overall, the industry is down about 85,000 jobs from 2020, currently employing 1.56 million people in the US.
Some of the study’s takeaways:
- Overall recruiting difficulty remains at its highest point in the study’s 13-year history, with technology, actuarial and analytics positions continuing to be considered the most difficult to fill. Nearly half of companies feel their ability to hire is worse than one year ago.
- Layoffs are at their lowest point in 10 years and resignations are at their highest point in 10 years. Companies simply cannot hire fast enough to replace those leaving.
- In the next 12 months, 68% of carriers plan to increase staff, up 12% from a year ago. This is primarily driven by anticipated increases in business volume. The need is especially great in claims, as activity has recovered from the pandemic lull in claim filings.
- Demand for temporary staffing also continues to peak, with 96% of carriers planning to increase or maintain their use of temporary employees.
- About 73% of companies expect revenue growth over the next year, driven by anticipated increases in market share. This is down 9% from January 2022’s study and down 5% from July 2021.
LMA Newsletter of 9-19-22
