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Results of the Q3 2021 Labor Outlook Study: Insurance Remains in a Candidate’s Market

For the past 18 months, job seekers have experienced a shifting labor market and many uncertainties. Now, as professionals feel a greater sense of stability, many are reevaluating their current roles and priorities, and seeking out employers who can best meet their needs. Although insurance industry unemployment rose to 4.2% in July, we’re seeing an increasingly active recruiting climate. According to our recent Q3 2021 Insurance Labor Outlook Study, conducted in partnership with Aon plc, 56% of insurers plan to increase staff in the coming year and 37% plan to maintain their current headcounts. The most common reasons for anticipated increases in staff are understaffed departments and increases in business volume. Technology, claims and operations roles are expected to see the greatest growth. In fact, during the past two years, operations has moved from the sixth to the third area where insurers are most likely to add staff. For the first time in the study’s history, respondents shared that all functional areas are moderately difficult to difficult to fill. Technology, analytics and actuarial roles are considered the most challenging. Of those insurers planning to add to their operations teams, more than half are most in need of entry-level employees. This may be due to insurers now competing with service roles and other industries for opportunities that require less experience. Overall, three-quarters of insurers reported they are most likely to add experienced-level professionals. Almost one quarter plan to add entry-level staff and the remaining 2% are most likely to add executives. Just 7% of insurers plan to decrease staff in the next 12 months, which is down 2 percentage points from January 2021 and 10 points from July 2020. Reorganization and automation are the primary reasons cited for staffing reductions. It’s likely many of these reductions will come in the form of early retirements or not backfilling positions left open due to standard attrition. Most insurers are adjusting their approach to flexible work options to accommodate employees’ needs. Just 4% don’t foresee changes to their pre-COVID working arrangements as offices reopen. About half are planning to offer full-time remote work. The Q3 2021 Insurance Labor Outlook Study took place from July 14 through August 1, 2021, with participation from insurance carriers across all industry sectors. Now in its 25th iteration, the semi-annual survey collects and examines data on insurance industry hiring, as well as revenue trends and projections. For more insight on the findings, listen to our latest episode of The Insurance Talent Podcast. To download the full report or view the results webcast presentation, click here. As you consider your next career move, check out our recent posts on gauging company culture in the interview process and continuing to develop as a leader in the remote environment.  

Top Insurance Employers: The Evolution of the Workplace

Published in Insurance Business America The Jacobson Group is honored to be named to the Business Insurance's 2021 Best Places to Work in Insurance List. Judy Busby shares her insights on the evolution of the workplace for the list's introductory piece.

Results of the Q3 2021 Insurance Labor Outlook Study: Employment Growth Amid a Difficult Recruiting Market

As we move through the second half of 2021, insurers’ employment outlooks remain strong. Our recent Q3 2021 Insurance Labor Outlook Study, conducted in partnership with Aon plc, found 93% of insurers plan to increase or maintain their headcounts in the next 12 months. Now in its 25th iteration, the semi-annual study collects and examines data on insurance industry hiring, as well as revenue trends and projections. The Q3 survey took place from July 14 through August 1, 2021, with participation from insurance carriers across all industry sectors. A few highlights from the study’s findings are below. Greg Jacobson, co-CEO of The Jacobson Group, and Jeff Rieder, partner at Aon and head of Ward, provide additional insight on the findings and what the industry can expect in the coming months in the latest episode of The Insurance Talent Podcast. Most businesses are feeling a renewed sense of stability, following nearly 18 months of remote work and pandemic-related challenges. Of the companies surveyed, 56% plan to increase staff and 37% anticipate maintaining their current headcounts in the coming year. The most common reasons for expected increases in staff are understaffed departments and increases in business volume. Technology, claims and operations roles are expected to see the greatest growth. Just 7% of insurers plan to decrease staff in the next 12 months, which is down 2 percentage points from January 2021 and 10 points from July 2020. Fewer than 3% of companies plan to decrease staff by 4% or more, with reorganization and automation being the primary reasons cited for staffing reductions. It’s likely many of these reductions will come in the form of early retirements or not filling positions that become open due to standard attrition. Yet, while the majority of insurers are planning to hire, the industry is facing a difficult recruiting climate. For the first time in the study’s history, all insurance functions were ranked as moderately-difficult to difficult to fill. Technology, analytics and actuarial roles are considered the most difficult, followed closely by executive positions.Seventy-eight percent of insurers anticipate revenue growth in the next year, which is 11 points higher than the January 2021 study. Only 1% of insurers expect a decrease in revenue, compared to 7% who anticipate staffing reductions. Given the remote environment and investment in technology, many insurers are seeing productivity increases among current staff, which may account for the lack of correlation. If the industry follows through on its staffing plans, we will see a 1.81% increase in employment during the next 12 months. Listen to our recent podcast, below or at this link, for additional insights and further discussion. To download the full report or view the results webcast presentation, click here.   

Episode 1: Exploring the Current State of the Insurance Labor Market

While BLS data may show a rising insurance unemployment rate, the results of the Q3 2021 Insurance Labor Outlook Study tell a different story. In this episode, Jeff Rieder, partner at Aon and head of Ward, joins host Greg Jacobson to discuss the current state of the insurance labor market and the recent labor study's results. Tune in for insight on what insurance leaders can expect in the next 12 months, as well as how to attract top talent in this candidate's market.

Q3 2021 U.S. Insurance Labor Market Study Results

The Jacobson Group and Aon-Ward conducted a study to investigate hiring trends within the insurance industry. The following presents the findings of an insurance labor survey conducted in the third quarter of 2021...

Celebrating 50 Years: Insights from Our Co-CEOs

This year marks The Jacobson Group’s golden anniversary. We are excited to celebrate 50 years of successfully connecting insurance organizations with the talent they need to drive success. As we reflect on a half-century in business, our co-CEOs, Greg Jacobson and Rick Jacobson, sat down for a Q&A about their time at Jacobson and how the industry has changed in the past several decades. For more of their responses, view the trailer episode of our new podcast, The Insurance Talent Podcast. What’s your earliest memory of the company? Greg: My earliest memory and something that has influenced me greatly, is a saying our father [David Jacobson, founder of The Jacobson Group] had, “We’re in the business of solving problems first, and making money second. If we help our clients, success will follow.” Our culture has reflected that for 50 years. What are you most proud of from Jacobson’s 50 years? Rick: When you think about the impact we’ve had on the insurance industry, it’s really quite profound. We’ve placed many people in roles within the industry and our talent solutions have also helped significant companies get through very difficult times. I’m very proud of those things. However, the thing I’m most proud of is the impact our culture has had on our employees. It’s amazing to see our co-workers grow in their careers, even beyond Jacobson. When you look around our industry, it’s populated by leaders who have come from our organization. How has the industry changed during your time at Jacobson? Greg: The insurance industry has always been a staple of economic activity and therefore representative of every aspect of business, life and health. Today however, it is probably one of the most dynamic, innovative industries in the economy. It’s attracting highly talented people from all over the world. The insurance industry is becoming a destination point.How has the company changed? Rick: Our organization has evolved dramatically over the years. We went from a one service shop to a robust organization that can meet essentially any talent need. One of the things I’ve always been really proud of is that we were the first company, in any industry, to effectively break the barrier between direct placement and executive search. Until recent years, the market viewed you as one or the other – we set out to shift that paradigm by offering industry-focused solutions and we refused to be defined by service offerings. We did this because we felt that was the best way to solve our clients’ challenges. There really is no other organization I am aware of that was able to do what we were able to do at that time. Greg: Technology has tremendously impacted our business; there is much more information out there than there ever was before. But it’s really interesting to think about what technology hasn’t done. It hasn’t replaced the need for consultants to help in the hiring process. You could say recruiting platforms like LinkedIn are very similar to Sunday newspaper ads 25 years ago. There are a lot of responses, but someone still needs to help evaluate that talent and assist with the acquisition of that talent. And that process hasn’t changed much at all. The value we add to the process is just as great as it was 50 years ago. Where do you see the business going in the next five to 10 years? Greg: I think human capital is the number one issue that will differentiate successful insurance companies. Attracting and retaining talent will remain difficult in a very competitive labor market and Jacobson will continue to evolve in its consultative approach to helping clients meet their needs. The most pronounced area will likely be in working with companies to understand what skills are needed to meet future needs and where to find those skills; and it may not be from within the insurance industry. Rick: We have become a comprehensive solution for insurance organizations, providing contingent workforce solutions for centralized labor programs, in addition to executive search, professional recruiting, subject matter experts and traditional temporary staffing solutions. No matter an insurer’s talent needs, we can provide the right talent solution. Our organization will continue to evolve along with our clients. We’re proud of our 50 years in business and look forward to the next 50. Thank you to everyone who has been a part of our journey. Hear more from Greg and Rick on The Insurance Talent Podcast.

August 2021: Labor Market Pulse

The overall economy saw an optimistic employment report in July, gaining nearly 950,000 jobs and exceeding economists’ predictions. The national unemployment rate is also encouraging, reaching its lowest since the start of the pandemic. However, the BLS reported continued job losses and a rising unemployment rate for the insurance carriers and related activities sector. While insurance employment is down from June, we’re continuing to see unprecedented activity within the industry. It’s possible these numbers are an anomaly and will adjust in the coming months, as “the Great Reshuffle” begins to settle. Additionally, the findings of our Q3 2021 Insurance Labor Outlook Study, which surveyed carriers across all industry verticals on their hiring plans for the next year, tell a more positive story. Full results of this study will be available in a webinar later this week. AT-A-GLANCE NUMBERS Unemployment for the insurance carriers and related activities sector increased to 4.2% in July.  The insurance carriers and related activities sector lost 1,500 jobs in July. At roughly 2.9 million jobs, industry employment increased by approximately 8,800 jobs compared to July 2020. The U.S. unemployment rate decreased to 5.4% in July and the overall economy added 943,000 jobs.   INDUSTRY HIGHLIGHTS On a year-to-year basis, June* insurance industry employment saw job increases in title (up 17.4%) and agents/brokers (up 2.2%). Meanwhile, job decreases were seen for reinsurance (down 5.5%), claims (down 4.5%), property and casualty (down 2.4%), TPAs (down 1.8%) and life/health (down 0.1%). On a year-to-year basis, June* saw weekly wage increases in reinsurance (up 15.3%), agents/brokers (up 3.4%), life/health (up 3.3%) and TPAs (up 0.5%). Meanwhile, wage decreases were seen for claims (down 2.4%), property and casualty (down 1.9%) and title (down 1.3%).      BLS Reported Adjustments: Adjusted employment numbers for June show the industry saw a decrease of 6,300 jobs, compared to the previously reported decrease of 200 jobs. The BLS continues to revise numbers to be most accurate, which may contribute to inconsistencies, depending on when reports were pulled. *The BLS reports on wages and employment for the industry category are only available for two months prior. The source for the data represented in PULSE is the U.S. Bureau of Labor Statistics. Insurance data is derived from the insurance carriers and related activities sector.

Celebrating 50 Years: Employee Reflections

As The Jacobson Group celebrates our 50th year of successfully connecting organizations with insurance talent, we're reflecting on our memories and journey to this point. Our achievements wouldn’t be possible without the incredible employees who work tirelessly toward writing our clients’ and candidates’ talent success stories. We asked our staff across all levels and tenures to share a bit about what makes them proud to work at Jacobson.   What is your favorite Jacobson memory? Janet Foor, Assistant Vice President and Client Relationship Manager: I was hired by David Jacobson [Jacobson’s founder], who holds a special place in my heart. Once a month, David would call all employees into his office and we would tell our placement stories and write the revenue in a big book. At the end of the story, David would yell, “Hip hip,” and we would respond with “Hooray!” Jessica LaFountain, Supervisor, Research and Recruiting: I love my team at Jacobson and have the best memories with them. Returning to the office this summer was not mandatory and when the office opened back up, those who were local planned to come in one day each week to work together – not because we had to, but because we were so excited to see each other face-to-face. How has the organization changed during your tenure? Jenn Shorr, Assistant Vice President, Operations: We have always worked hard to meet the needs of our clients. Over the last five to seven years, I have seen the management team take a concerted and strategic approach to ensure we are developing our employees and cultivating a rich internal culture. I think this has propelled our ability to delight our clients and engage bright talent internally. Sarah Karvel, Engagement Director, Executive Search: The pandemic hit six months after I joined the executive search team. Who knew the virtual office setting would bring us closer together? It has been a wonderful experience and I’ve had too many great memories while working remotely with this team. What makes you proud to work at Jacobson? Caitlyn Zarlengo, Corporate Recruiting Manager: I’m proud to work at Jacobson because of the amount of care every employee has for one another. It truly feels like we are one big family and it is shown in the way we communicate with each other, support one another, and celebrate and lift each other up. Samantha Banes, Recruiter: Jacobson embodies the core values I personally believe in and is easily the best place I have worked during my professional career. My favorite things include the food recommendations, music playlists and the encouragement – everyone wants everyone else to succeed. Dave Coons, Senior Vice President: I have always appreciated the opportunity to work with people I truly respect and admire. I’ve never wondered if there was something better because there is no better than Jacobson. How has your career evolved as a result of working at Jacobson? Michelle Velto, Operations and Administration Leader: How hasn’t my career evolved? I started in the front office answering phones, parsing resumes and posting mail. I’ve gotten to do so many things here at Jacobson, and now I work in our executive search division alongside our CEO, Greg Jacobson, and our fantastic business unit leader, Judy Busby. Each day, I get to support our team, clients and executive-level candidates in a variety of ways. Nikki St.Martin, Vice President of Marketing: I started at Jacobson fresh out of college as its first full-time marketing professional. Nineteen years later and so much has changed! I spent my first year designing black and white print collateral and writing copy for direct mailers. Fast forward to now, and I proudly lead a team of creative, driven marketing professionals who have helped build the Jacobson brand into the insurance talent thought leader it is today. Our well-known Semi-Annual Insurance Labor Outlook Study, the founding of the Insurance Careers Movement, and our new Insurance Talent podcast are just a few of my favorite initiatives. I couldn’t be happier with my decision to join the Jacobson family all those years ago. Shelby Punke, Senior Executive Recruiter: Jacobson has provided me with so many professional learning opportunities, but still allows me to have a great work-life balance. Management also goes out of their way to make kind gestures and offer development opportunities for their employees. Celebrating this incredible milestone with our employees has provided an opportunity to share stories and reflect on our experiences. We are extremely grateful for each member of our team and their dedication to our clients’ success. If you’re interesting in becoming a part of The Jacobson Group’s next chapter, view our open positions here.

Combatting the Underwriter Shortage

There’s currently a severe talent shortage across all industries and insurance is no exception. Despite the pandemic, the insurance carriers and related activities sector has added nearly 16,000 new jobs since March 2020 and has continued to experience a low unemployment rate, according to the Bureau of Labor Statistics. One of the areas where the talent shortage is highly noticeable for many insurance organizations is underwriting. For years we’ve discussed the shortage of qualified underwriting talent; and the impact of COVID-19 has further intensified this need. How did the industry get here and what can you do if you’re looking to build your underwriting bench? The Underwriting Talent Shortage In part, the shortage of underwriting talent is due to shifts several years back. Insurers began a journey of accelerated underwriting, making large investments in technology. Once these new technologies were up and operating, we saw several organizations laying off underwriters or encouraging early retirements. This also led to many insurers reducing or eliminating their once thriving underwriting training programs. Young insurance professionals began choosing alternate career paths, fearing there wouldn’t be much long-term opportunity and job security within underwriting. In fact, Forbes listed underwriting as one of the “10 most endangered jobs” in 2015. However, automation hasn’t been able to fully replace the human element of the underwriting process. And, as COVID-19 has impacted the industry, underwriting has become less straightforward. There’s an increased need for human evaluation and risk assessment. A lack of investment in new talent and an aging insurance workforce, coupled with increased demand and the inability of automation to meet insurers’ needs, has created the perfect storm and resulted in a severe shortage of qualified underwriting talent. The State of Underwriting As potential underwriting talent moves into different career paths, the job outlook for underwriters is also continuing to decline. The BLS predicts employment of insurance underwriters will decrease by 6% between 2019 and 2029, falling from 114,700 roles to 107,600. However, it’s likely this decline has occurred even more quickly and drastically, with BLS data showing there were 102,000 insurance underwriters in 2020. As COVID-19 has demonstrated, a human element of underwriting is still needed, and automation can only do so much. As technology handles more mundane and repetitive tasks, underwriters are able to take on more challenging projects and interact more directly with customers. While the role of a human underwriter is evolving, it is still vital within insurance organizations. Steps Forward For insurers looking to attract and retain underwriting talent, it’s important to understand the current landscape and adjust hiring and retention strategies accordingly. Here are a few best practices for being an employer of choice and creating a longer-term strategy for combatting the underwriting shortage within your own organization: Offer remote opportunities. This should be a best practice regardless of the position or function. Professionals have proven they can remain productive and effective in virtual work environments and won’t hesitate to make a move if their current employer isn’t willing to accommodate remote work. Involve current employees and potential new hires in building flexible schedules that meet both their needs and the needs of your team. Focus on retention. It’s difficult to find new underwriters, making it even more vital to retain current ones. While remote work options are necessary, recognize that this also means other companies can recruit without geographic restrictions. Ensure you’re having frequent and candid conversations with employees about what it will take for them to stay with the organization. Rethink compensation. If you haven’t evaluated your total rewards and compensation packages recently, take some time to make sure what you’re offering underwriters is competitive with the larger market. This includes offering potential new hires higher compensation, while also ensuring your current team is well-compensated. Provide development opportunities. Especially for those concerned automation will continue replacing underwriting jobs, create clear career paths and professional development plans. Offer opportunities for individuals to lead projects and flex their skills, while actively communicating that you are invested in their continued advancement. Embrace the human element. If your current underwriting staff is working longer and more intense hours than usual, make sure they’re being rewarded and compensated accordingly. At the same time, ensure managers and other leaders are proactively communicating with individuals and letting them know their efforts are valued. As the industry continues to combat the underwriter shortage, it’s imperative insurers focus on retaining and building current underwriting talent, while offering flexibility, growth opportunities and competitive compensation. Additionally, highlighting the attributes and continued need for underwriters will help draw new talent to the industry. Regardless of automation, the human element of underwriting provides unique insight that won’t be easily replicated.

Trailer: Welcome to The Insurance Talent Podcast

Greg Jacobson and Rick Jacobson, co-CEOs of The Jacobson Group, celebrate 50 years of providing talent to the insurance industry. As part of our 50-year celebration, we're excited to launch The Insurance Talent Podcast, which will discuss the talent topics necessary for insurance leaders to thrive in an evolving environment. In this episode, take a trip down memory lane to hear how the company and the insurance industry have changed in the past half-century.

Engaging Talent in the Great Reshuffle

The industry is experiencing “the Great Reshuffle” of talent. Many professionals who have held off on making moves during the past year and a half are moving forward in their job searches and reevaluating their roles within their current companies. Insurers must be proactive in retaining their employees and recruiting top talent to their organizations. In our most recent issue of Compass, Judy Busby, senior vice president of executive search and corporate strategy at The Jacobson Group, shares best practices for engaging talent in the new working environment. By focusing on building connections, you’ll contribute to greater job satisfaction and increased retention and overall productivity, while cultivating a strong sense of culture. Be strategic and flexible.Even if your organization is beginning to reopen its physical doors, refrain from mandating employees be in the office from 9 to 5 each day. Most individuals have already proven they can be productive in the remote environment. Whether you’re bringing on a new employee or reevaluating current employees’ schedules, think through the needs of the role, rather than putting arbitrary requirements in place. Work with your employees to determine when it’s necessary for them to be in the office and find a balance that best meets both their needs and those of your department. Focus on connections.When employees aren’t seeing each other in the office every day, it’s vital to be intentional about creating internal networks. Especially for new hires, managers must proactively facilitate informal, relationship-building interactions with numerous members of the organization. This could be in the form of short coffee breaks or “get to know you” meetings. By developing networking maps, you can ensure new employees are building the connections necessary to establish strong long-term working relationships throughout the organization. Develop “keep” strategies.While it’s important to create a positive new hire experience, it’s also vital to retain your current high performers. Have candid conversations around your employees’ career aspirations and directly ask what it will take to keep them with the organization. It’s likely each employee will have varying needs and priorities when it comes to their careers. For instance, some may value professional development and advancement opportunities, while others are driven by compensation, flexibility or other factors. There’s no “one-size-fits-all” strategy for coming back to the office. Determine how to best make individuals feel connected and valued within your team and reevaluate how you can best accommodate individual needs. For more on employee engagement in the hybrid culture, as well as how to be intentional about cultivating a strong corporate culture, view “Coming Out Ahead in the Great Reshuffle".

Retaining Younger Generations in the New Working Environment

The insurance workforce has gone through a number of significant shifts in the past year and a half. As physical offices begin to reopen and insurers move forward into the next normal, we’ve seen increased competition for talent. It’s a fitting time to reassess how your department is retaining its employees and accommodating a multi-generational workforce. The oldest members of Generation Z are settling in to their first professional roles, and as a result, five distinct generations are working side-by-side, each with unique needs, motivators and values. While all individuals are different, having a general understanding of what Generations Z and Y typically value in an employer and role is key in retaining these future leaders. While all individuals are different, having a general understanding of what Generations Z and Y typically value in an employer and role is key in retaining these future leaders. Below are a few best practices. Be flexible.Generation Z has grown up online, with most not remembering a world before smartphones, tablets and social media. Many of these individuals took college courses online (especially those who graduated in 2020 and 2021) and are comfortable interacting and building relationships through a computer screen. Even as physical office locations reopen, mandating employees work from the office five days a week is an outdated practice. Consider non-traditional schedules and flexible work arrangements, finding a balance that works for both you and your employees. Acknowledge preferred communication styles.You may be surprised to learn members of Generation Z typically prefer face-to-face communication or that instant messaging and emails are largely favored by Millennials. Of course, while these generalizations can help guide you, all individuals have their own personal preferences around communication methods and learning styles. Ask employees how they want to receive information and strive to communicate through these preferred channels when possible. Focus on career development.While many employees are seeking out career development opportunities, younger generations are more likely to leave a company if they do not see a clear path forward. What’s more, Generation Z sees their career paths as more fluid and lateral than the generations before them. They have interests that span several departments and skills that can be applied in a number of areas. Help them harness these interests and expose them to various roles within the larger organization. Provide the tools and formal career development programs necessary to provide them with a sense of stability and ongoing growth. The insurance industry is in a candidate-driven market and competition for top talent is fierce. Gain an understanding of your younger workers’ unique needs and tie these into your retention and development strategies. For additional insight on managing a multi-generational workforce, view “Virtual Management that Transcends the Generations.”