Technology Blamed For Insurance Sector Job Loss

The Bureau of Labor Statistics survey data found that insurance carriers and companies in related activities had employed 2.231 million workers last month, a drop of 1,800 jobs from October, when companies had employed some 2.232 million workers.

The October employment figures, in turn, represented a decline of 6,500 jobs from September, when insurance companies had employed 2.239 million workers.

In contrast, overall U.S. non-farm payroll figures reported an improvement last month, adding 57,000 new jobs to report 130.174 million overall jobs last month.

Mr. Patrino said that with acquisitions, when one insurer buys another, more and more are reducing the combined head count.

The second reason why insurance employment numbers are still dropping, he said, is related to advances in technology. "Over the past five to six years, insurers in general have been investing quite a bit of money into improving their technical skills. So they have been able to revolutionize the operating process of running an insurance company. At the end of all this, computers are doing more of the work."

He added that the jobs being lost would likely have come from various home-office operations, including underwriting, general administration and perhaps claims as well.