The insurance industry continues to evolve, with hiring trends reflecting both optimism and emerging challenges. The Q1 2025 Insurance Labor Market Study by The Jacobson Group and Ward, Aon’s Performance Benchmarking Division, offers valuable insights into staffing expectations, revenue growth projections, and the shifting workforce landscape. Below, we highlight the key takeaways and what they mean for insurers and job seekers in the year ahead.
Hiring Outlook: A Majority of Insurers Plan to Expand
Despite economic uncertainties, hiring within the insurance sector remains strong.
- 55% of insurance companies anticipate expanding their workforce in the next 12 months, driven largely by the life and health sector at 60%.
- 12% of insurers expect to reduce staff, a slight increase from 10% in early 2024, signaling some pockets of workforce adjustments.
- Large companies, at 64%, are the most likely to hire, outpacing small and medium-sized insurers by 4 and 26 points, respectively.
The primary driver of new hires is business growth, with 39% citing increased business volume and 34% pointing to expansion into new markets. On the flip side, reorganization and automation are the leading reasons for planned workforce reductions.
Revenue Expectations: Optimism with Slight Declines
Revenue projections remain positive, though slightly tempered compared to 2024.
- 74% of insurers expect revenue growth, down three percentage points from the previous year.
- Commercial lines property and casualty carriers are the most optimistic, with 79% forecasting growth, followed by life and health at 73%, balanced lines at 67%, and personal lines at 65%.
Market share remains the dominant factor influencing revenue projections at 49%, with pricing strategies playing a secondary role at 27%.
Key Roles in Demand: Tech, Underwriting, and Claims Lead Hiring
With business expansion driving workforce growth, insurers are prioritizing specific areas for recruitment.
- Technology, underwriting, and claims roles are expected to see the highest demand.
- Loss control, actuarial, product management, and accounting will likely see more experienced hires.
- Claims and operations departments will be key entry points for newcomers to the industry.
- Actuarial, executive, and analytics positions remain the most challenging to fill.
Workforce Trends: Hybrid Work Remains Dominant
The hybrid work model is firmly entrenched in the industry.
- 75% of insurers expect a hybrid work environment to remain the norm over the next six months.
- Only 3% of companies now require daily in-office attendance, down from 6% in early 2024.
- After six months, 11% of insurers plan to increase in-office work requirements.
Turnover Trends: A Cooling Labor Market?
The study suggests turnover rates are stabilizing.
- The six-month voluntary turnover rate of 5.8% is lower than the 12-month average of 8.5%.
- The six-month involuntary turnover rate of 2.9% also dropped from the 12-month average of 4.1%.
While 14% of companies report hiring has become more difficult, up from 11% in mid-2024, the overall slowdown in turnover suggests improved employee retention efforts.
Personal Lines Companies Face More Uncertainty
One of the more notable trends in the study is the headcount volatility within personal lines carriers.
- These companies are more likely to reduce staff in 2025.
- They also report higher involuntary turnover compared to 2024, signaling potential shifts in strategy or profitability concerns.
Final Thoughts: Adapting to Workforce Shifts
The insurance labor market in 2025 is marked by steady hiring, moderate revenue optimism, and a shift toward hybrid work stability. While challenges remain—particularly in talent acquisition for specialized roles and structural shifts in personal lines—insurers are largely preparing for growth.
For professionals in the industry, underwriting, claims, and technology remain hot job markets, while companies must navigate evolving work expectations and retention strategies to stay competitive.
The next 12 months will be crucial in shaping long-term workforce trends, and insurers must stay agile in balancing growth, automation, and employee engagement.