The insurance industry is always changing with few constants;however, the month of January reflected one strong constant:employment growth.
|The U.S.Department of Labor's Bureau of Labor Statistics (BLS) recentlypublished data as of January 2017 on detailed insurance industryemployment and found that employment in most segments of theinsurance industry was up to varying degrees. Steven Weisbart, Ph.D., CLU, senior vice president andchief economist at the Insurance Information Institute summarized thelatest trends across the insurance industry. Data for the last fewmonths are preliminary and are often revised later, but revisionsare usually small.
|Although these trends aren't certain to continue, they do reflect a changing market for insurance– especially under a Republican president andCongress.
|Here are the latest employment trends in the month of January2017 for four major industry segments.
|Related: Insurance industry employment up year-over-year inmost segments
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(Photo: Shutterstock)
|1. Life/Annuitycarriers
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Employment by life/annuity carriers rose in January 2017 vs.January 2016 (up 6,400, or +1.9 percent) to 350,600. Since thefourth quarter of 2011, employment in the life/annuity segment hasgenerally been flat. In September 2011 employment was 348,500 andhas loosely maintained that level since that time.
|Related: Marsh's top 10 financial & professional markettrends for 2017
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(Photo: Shutterstock)
|2. Health carrier segment
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The health carrier segment had been gaining jobs quite steadilyfor decades. However, in January 2017 vs. January 2016, it roseonly slightly (up 1,900, or 0.4 percent) to 470,900. At least someof this slowdown is undoubtedly connected with the 2016 electionresults that indicate a significant change in expected healthinsurance ownership and claims, offset partly by populationgrowth.
|Depending on the changes that are ultimately enacted, employmentgrowth in this sector could resume, remain flat, or decrease in thecoming years.
|Related: Matters of Life & Health: 2017 NU/PIAIndependent Agent Survey continues
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(Photo: Shutterstock)
|3. Agent/Broker segment
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The agent/broker segment gained 11,400 jobs in January 2017 vs.January 2016 (up 1.5 percent) to 781,900. Employment growth in thiscategory in the last three years has been extremely strong. In July2012 this segment employed 660,700; so that in 55 months,employment rose by 121,200, or 18.3 percent. More granularly,employment numbers rose by 31,600 in 2013; by 52,300 in 2014; andby 26,600 in 2015, with the spurt ending in 2016.
|Related: Be an agent of change
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(Photo: Shutterstock)
|4. Reinsurance carriers
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Among the smaller industry segments, reinsurance carrieremployment in the U.S. rose slightly in January 2017 vs. January2016 (up 100, or 0.4 percent) to 24,900. Employment at independentclaims-adjusting firms on a year-over-year basis for January 2017rose by 4,000 (+7.2 percent) to 59,600. Year-over-year employmentin the category of third-party administration of insurance fundsrose by 4,800 (2.6 percent) to 186,600. This category has grownquite steadily for more than two decades, though not as fast asemployment at medical expense insurers.
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