Insurance Companies Boost Hiring Plans as Human Talent Remains Vital Despite AI Advances

Insurance Companies Set to Boost Hiring Despite AI Concerns

Most insurance companies in the U.S. plan to increase staff hiring over the next year, despite worries about artificial intelligence (AI) replacing human roles. The 2025 Insurance Labor Market Study by Jacobson Group and Aon’s Strategy and Technology Group reveals that 55% of insurers intend to hire more employees, with life and health insurance sectors leading at 60%. Key growth areas include technology, underwriting, and claims.

Human Talent Remains Central

Jeff Rieder, partner at Aon STG, highlights that face-to-face interaction and personalized advice remain essential in insurance. While AI is advancing, it is still far from fully replacing human advisors. The individual expertise financial advisors provide continues to be a critical part of client relationships.

Reasons Behind the Hiring Increase

• 33% of insurers expect increased business volume.
• 34% plan expansions into new markets.
• 74% anticipate revenue growth in the next 12 months.

After a hiring surge in 2021-2022 that somewhat overestimated growth, insurers now approach recruitment with more caution. However, areas like sales, marketing, and underwriting for life and health insurance remain in high demand due to ongoing expansion efforts.

Automation's Role and Workforce Adjustments

While 12% of insurers plan staff reductions, this mainly stems from business restructuring rather than direct AI job cuts. Automation and overstaffing contribute but to a lesser extent. Companies are heavily investing in modernizing core systems, employing AI, predictive analytics, and enhancing digital strategies to improve efficiency.

Underwriting and Technology Jobs Lead Growth

Underwriting stands out as the top function expected to grow, especially in the life insurance sector. Despite automation streamlining processes, the need for skilled underwriters who assess risk according to company standards remains strong. Technology roles also rank high, particularly within property and casualty carriers.

Keeping Humans in the Loop

Complex insurance products and individual customer needs mean human expertise cannot be fully replaced by technology. Financial advisors continue to play a crucial role in helping clients assess their risks and financial goals. This “human in the loop” approach ensures technology supports rather than substitutes human judgment.

No Clear Signs of AI-Driven Job Losses Yet

Currently, there is no solid evidence that advisors are losing jobs due to lack of AI expertise. While AI tools can speed up work, proficiency with AI is helpful but not a strict requirement. Advisors bring value by guiding clients through economic uncertainties and market challenges better than AI alone can.

With AI becoming part of insurance operations, professionals who adapt and integrate these tools into their workflows will maintain a competitive edge without fearing immediate job displacement.

About the Study and Organizations

• Jacobson Group is a Chicago-based insurance recruitment firm founded in 1971.
• Aon is a global professional services company with nearly 70,000 employees across 120 countries. Its Strategy and Technology Group specializes in insurance insights and software.

For insurance professionals interested in expanding their AI knowledge and skills, exploring courses on AI applications in finance and underwriting can be valuable. Platforms like Complete AI Training offer specialized courses tailored for insurance and finance roles.