Insurance Industry Employment Trends: 1990-2014

Insurance Information Institute September 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

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Overview of Insurance Sector Employment Changes*

*Data are through July 2014 and are preliminary (i.e., subject to later revision); seasonally adjusted.

Insurance SubsectorJune 2014

EmploymentJuly 2014

EmploymentChange

CARRIERS

P-C Direct 532,700 533,900 +1,200

Life Direct 340,200 341,100 +900

Health/Medical Direct 492,300 495,000 +2,700

Title & Other Direct 73,300 74,600 +1,300

Reinsurers 27,300 27,300 +0

OTHERS

Agents/Brokers 685,700 683,400 -2,300

3rd-Party Administration 163,600 163,400 -200

Claims Adjusters 51,500 51,600 +100

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Baselines:U.S. Employment Trends

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

*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.

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 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.

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 July 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 July 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 July 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

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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 July 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 July 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 July 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 July 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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