The initial effects of COVID-19 on insurance employment
Even amongst the pandemic's challenges, the insurance labor market has maintained relative stability.
It’s been a few months since COVID-19 emerged, and data is now available that offers a glance at how the pandemic has impacted employment across the insurance industry.
In April, the U.S. economy overall experienced the most dramatic month-to-month unemployment increase since 1948 when the number of unemployed surged to 23.1 million. All things considered, the insurance industry has remained relatively stable since the start of the pandemic. The unemployment rate for insurance carriers and related businesses increased from 1% in March to 3.9% in April and then decreased slightly to 3.6% in May when approximately 300 jobs were added, reported The Jacobson Group.
“Insurers have not experienced mass layoffs, and title, agents/brokers and TPAs were the only sectors that saw month-to-month job decreases,” said the provider of insurance talent services in its latest edition of PULSE.
The agent and broker channel, especially, has experienced challenges amidst the coronavirus. Consumers have been turning to digital channels to purchase traditional lines of insurance during stay-at-home and social distancing orders. This shift to more online operations has further jeopardized agents and brokers whose bread-and-butter businesses have been infringed on by direct-to-consumer brands in recent years.
April 2020 insurance employment highlights
Jacobson’s report reveals year-over-year insurance employment trends for April, including:
- Employment in the property and casualty sector increased by 1.8%, and weekly wages increased by 4.1%.
- Employment of agents and brokers decreased by 0.1%, and weekly wages increased by 6.5%.
- Employment in TPAs increased by 0.1%, and weekly wages increased by 6.2%.
- Employment in reinsurance decreased by 4.2%, and weekly wages increased by 8.3%.
- Employment in claims decreased by 7.6%, and weekly wages increased by 5.6%.
Industry hiring trends
From March 31 to April 10, Jacobson conducted a survey amongst U.S. insurers and reinsurers across all verticals to determine the pandemic’s impact on the insurance labor market.
The study, conducted in partnership with Aon, revealed that 43.2% of insurance companies have changed their hiring plans due to COVID-19. More than eighteen percent said they anticipate or are on a hiring freeze.
Carriers also said they are more likely to add technology and analytics roles during the pandemic than before.
“While insurers are making changes to their hiring plans, the shifts appear relatively minimal compared to the general economy,” said Gregory P. Jacobson, co-chief executive officer of Jacobson, in a statement.
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