Insurance Industry Employment Trends: 1990-2014

Insurance Information Institute October 2014

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 August 2014 and are preliminary (i.e., subject to later revision); seasonally adjusted.

Insurance SubsectorJuly 2014

EmploymentAugust 2014Employment Change

CARRIERS

P-C Direct 532,800 533,900 +1,100

Life Direct 341,100 342,200 +1,100

Health/Medical Direct 495,000 496,400 +1,400

Title & Other Direct 74,600 73,700 -900

Reinsurers 27,300 27,400 +100

OTHERS

Agents/Brokers 683,700 689,000 +5,300

3rd-Party Administration 163,400 164,700 +1,300

Claims Adjusters 51,600 50,700 -900

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Baselines:U.S. Employment Trends

4

U.S. Nonfarm Employment,Monthly, 1990–2014*

*As of September 2014; 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

'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

5

U.S. Employment in Service Industries,Monthly, 1990–2014*

*As of September 2014; 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

6

Insurance Industry Employment Trends

For the last 15 years, total industry employment has stayed in a

narrow band of 2.3-2.4 million

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U.S. Employment in the DirectP/C Insurance Industry: 1990–2014*

*As of August 2014; 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

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: 1990–2014*

*As of August 2014; 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

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.

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U.S. Employment in the Direct Health-Medical Insurance Industry: 1990–2014*

*As of August 2014; 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

'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

10

U.S. Employment in the Reinsurance Industry: 1990–2014*

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

*As of August 2014; 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: 1990–2014*

Thousands

500

525

550

575

600

625

650

675

700

'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

*As of August 2014; 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: 1990–2014*

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

*As of August 2014; 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: 1990–2014*

Thousands

90

100

110

120

130

140

150

160

170

'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

*As of August 2014; 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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