Shift in hiring noted among all industries
There is much talk about the use of artificial intelligence (AI) in the insurance industry, including by members of the Florida Legislature this session. A recent CEO Outlook report by KPMG shows that insurance CEOs would like to take AI implementation much further. Survey responses from 110 CEOs representing the major insurance lines reveal that 70% were confident or very confident in growth prospects for the industry, and 86% plan on embedding AI agents within their workforce. These companies are all industry drivers, with over $500 million in annual revenue, and many say that AI will change the organizational structure of the insurance business moving forward, “removing friction” within the systems to deliver to customers even when people can’t.
According to Kelly DiCuffa, KPMG’s Managing Director of Human Capital, brokers used to run with a top-down staffing model, but now it will look more like an hourglass. AI will handle a large part of the work hours from the bottom of the system, working alongside some human personnel, and other staff positions will be filled out by AI agent bosses and AI agent evaluators. But right now, these system overhauls are bottlenecked by a lack of upskilling into the AI implementation: 77% of the CEOs interviewed agreed that workforce readiness and upskilling are the largest constraints on this potential seismic shift in insurance operations.
This so-called hourglass model may be causing a disturbance in the job market, according to a survey by Western Governors University (WGU). Data pulled from more than 3,000 employers of all industries shows that AI is reshaping hiring practices, with 76% of employers reporting a shift in ideal candidates for jobs, preferring mid-level workers with five+ years of experience; 38% are seeing a reduced number of entry level jobs – which have become some of the least in-demand in the workforce. The hourglass model also necessitates a change at the top of the work structure, where WGU found perhaps the most shocking shift: executive-level workers, those with 15+ years of experience in their field were experiencing even less demand than their entry-level counterparts, leaving mid-level talent to take center stage in the AI workforce revolution.
Some CEOs of AI companies have long warned that the technology could spell doom for entry level workers in certain industries such as finance, consulting, and technology. Yet only 9% of companies have replaced full roles with AI, so far. Mirroring the findings in the KPMG report, 25% of those in the WGU survey said they were prioritizing candidates comfortable with AI tools. It seems the most surefire way for job security in this modern age is to get in with AI, and be comfortable managing and learning alongside it.
The Florida Legislature this session has been examining the use of AI in insurance. SB 202 would require mandatory human reviews of claim denials. Some people view AI as the bogeyman. We feel certain, however, that industry leaders recognize that compliance with insurance laws and regulations apply to humans as well as AI technology that humans control. As a wise insurance veteran said at the October 2025 Florida House of Representatives AI hearing, “If it’s illegal for a human to do it, it’s illegal for AI to do it!”
See you on the trail,
Lisa
LMA Newsletter of 2-9-26
