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) recently published data as of January 2017 on detailed insurance industry employment and found that employment in most segments of the insurance industry was up to varying degrees. Steven Weisbart, Ph.D., CLU, senior vice president and chief economist at the Insurance Information Institute summarized the latest trends across the insurance industry. Data for the last few months are preliminary and are often revised later, but revisions are usually small.
Although these trends aren't certain to continue, they do reflect a changing market for insurance – especially under a Republican president and Congress.
Here are the latest employment trends in the month of January 2017 for four major industry segments.
Related: Insurance industry employment up year-over-year in most segments
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1. Life/Annuity carriers
Employment by life/annuity carriers rose in January 2017 vs. January 2016 (up 6,400, or +1.9 percent) to 350,600. Since the fourth quarter of 2011, employment in the life/annuity segment has generally been flat. In September 2011 employment was 348,500 and has loosely maintained that level since that time.
Related: Marsh's top 10 financial & professional market trends for 2017
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2. Health carrier segment
The health carrier segment had been gaining jobs quite steadily for decades. However, in January 2017 vs. January 2016, it rose only slightly (up 1,900, or 0.4 percent) to 470,900. At least some of this slowdown is undoubtedly connected with the 2016 election results that indicate a significant change in expected health insurance ownership and claims, offset partly by population growth.
Depending on the changes that are ultimately enacted, employment growth in this sector could resume, remain flat, or decrease in the coming years.
Related: Matters of Life & Health: 2017 NU/PIA Independent Agent Survey continues
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3. Agent/Broker segment
The agent/broker segment gained 11,400 jobs in January 2017 vs. January 2016 (up 1.5 percent) to 781,900. Employment growth in this category in the last three years has been extremely strong. In July 2012 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; and by 26,600 in 2015, with the spurt ending in 2016.
Related: Be an agent of change
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4. Reinsurance carriers
Among the smaller industry segments, reinsurance carrier employment in the U.S. rose slightly in January 2017 vs. January 2016 (up 100, or 0.4 percent) to 24,900. Employment at independent claims-adjusting firms on a year-over-year basis for January 2017 rose by 4,000 (+7.2 percent) to 59,600. Year-over-year employment in the category of third-party administration of insurance funds rose by 4,800 (2.6 percent) to 186,600. This category has grown quite steadily for more than two decades, though not as fast as employment at medical expense insurers.
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