Insurance Industry Employment Trends: 1990-2015

Insurance Information Institute May 2015

Robert P. Hartwig, Ph.D., CPCU, President & EconomistInsurance Information Institute 110 William Street New York, NY 10038

Tel: 212.346.5520 Cell: 917.453.1885 bobh@iii.org www.iii.org

2

Overview of Insurance Sector Employment Changes*

*Data are through March 2015 and are preliminary (i.e., subject to later revision); seasonally adjusted.

Insurance SubsectorFebruary 2015Employment

March 2015

EmploymentChange

CARRIERS

P-C Direct 526,500 526,900 +400

Life Direct 354,700 355,900 +1,200

Health/Medical Direct 508,600 509,800 +1,200

Title & Other Direct 76,300 76,900 +600

Reinsurers 25,100 25,300 +200

OTHERS

Agents/Brokers 729,400 731,000 +1,600

3rd-Party Administration 176,800 178,100 +1,300

Claims Adjusters 50,300 50,500 +200

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Baselines:U.S. Employment Trends

4

U.S. Nonfarm Employment,Monthly, 1990–2015*

*As of April 2015; not seasonally adjusted.Note: Recessions indicated by gray shaded columns.Sources: U.S. Bureau of Labor Statistics; National Bureau of Economic Research (recession dates); Insurance Information Institute.

Millions

105

110

115

120

125

130

135

140

145

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

5

U.S. Employment in Service Industries,Monthly, 1990–2015*

*As of April 2015; not seasonally adjusted.Note: Recessions indicated by gray shaded columns.Sources: U.S. Bureau of Labor Statistics; National Bureau of Economic Research (recession dates); Insurance Information Institute.

Millions

85

90

95

100

105

110

115

120

125

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

6

Insurance Industry Employment Trends

From 1998 through 2013, total industry employment has stayed

in a narrow band of 2.3-2.4 million; in 2014 it rose above that

band

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U.S. Employment in the DirectP/C Insurance Industry: 1990–2015*

*As of March 2015; not seasonally adjusted; Does not including agents & brokers.Note: Recessions indicated by gray shaded columns.Sources: U.S. Bureau of Labor Statistics; National Bureau of Economic Research (recession dates); Insurance Information Institute.

Thousands

460

480

500

520

540

560

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Sometimes the BLS reclassifies employment within industries.

When this happens, the change is spread evenly over a 12-month period (in this case March 2010-

March 2011.

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U.S. Employment in the DirectLife Insurance Industry: 1990–2015*

*As of March 2015; not seasonally adjusted; Does not including agents & brokers.Note: Recessions indicated by gray shaded columns.Sources: U.S. Bureau of Labor Statistics; National Bureau of Economic Research (recession dates); Insurance Information Institute.

Thousands

300

325

350

375

400

425

450

475

500

525

550

575

600

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

Every 4-5 years BLS reconciles its data with census data; sometimes this

reclassifies employment within industries. This drop, spread over

March 2004-March 2005, moved some people to the Health/Medical Expense

sector.

9

U.S. Employment in the Direct Health-Medical Insurance Industry: 1990–2015*

*As of March 2015; not seasonally adjusted; Does not including agents & brokers.Note: Recessions indicated by gray shaded columns.Sources: U.S. Bureau of Labor Statistics; National Bureau of Economic Research (recession dates); Insurance Information Institute.

Thousands

175

200

225

250

275

300

325

350

375

400

425

450

475

500

525

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

10

U.S. Employment in the Reinsurance Industry: 1990–2015*

Thousands

24

28

32

36

40

44

48

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

*As of March 2015; not seasonally adjusted; Does not including agents & brokers.Note: Recessions indicated by gray shaded columns.Sources: U.S. Bureau of Labor Statistics; National Bureau of Economic Research (recession dates); Insurance Information Institute.

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U.S. Employment in Insurance Agencies & Brokerages: 1990–2015*

Thousands

500

525

550

575

600

625

650

675

700

725

750

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

*As of March 2015; not seasonally adjusted. Includes all types of insurance.Note: Recessions indicated by gray shaded columns.Sources: U.S. Bureau of Labor Statistics; National Bureau of Economic Research (recession dates); Insurance Information Institute.

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U.S. Employment in Insurance Claims Adjusting: 1990–2015*

Thousands

40

45

50

55

60

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

*As of March, 2015; not seasonally adjusted.Note: Recessions indicated by gray shaded columns.Sources: U.S. Bureau of Labor Statistics; National Bureau of Economic Research (recession dates); Insurance Information Institute.

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U.S. Employment in Third-Party Administration of Insurance Funds: 1990–2015*

Thousands

95

100105

110

115

120125

130

135140

145

150155

160

165

170175

180

'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15

*As of March 2015; not seasonally adjusted. Includes all types of insurance.Note: Recessions indicated by gray shaded columns.Sources: U.S. Bureau of Labor Statistics; National Bureau of Economic Research (recession dates); Insurance Information Institute.

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