Insurance Industry Employment Trends 1990 2017 Insurance Information

Insurance Industry Employment Trends: 1990– 2017 Insurance Information Institute June 2017 Steven Weisbart, Ph. D. , Vice President and Chief Economist Insurance Information Institute 110 William Street New York, NY 10038 Tel: 212. 346. 5540 Cell: 917. 494. 5945 stevenw@iii. org www. iii. org

Overview of Insurance Sector Employment Changes* Insurance Subsector March 2017 Employment April 2017 Employment Change Carriers P-C Direct 563, 600 564, 200 +600 Life Direct 351, 800 351, 700 -100 Health/Medical Direct 471, 000 471, 300 +300 Title & Other Direct 94, 100 93, 800 -300 Reinsurers 24, 700 24, 800 +100 Agents/Brokers 779, 100 779, 000 -100 Third-Party Administration 187, 400 188, 900 +1, 500 58, 200 58, 400 +200 Others Claims Adjusters *Data are through April 2017 and are preliminary (i. e. , subject to later revision); not seasonally adjusted. Source: U. S. Bureau of Labor Statistics 2

Baselines: U. S. Employment Trends

U. S. Nonfarm Employment, Monthly, 1990– 2017* 150 145 140 Millions 135 130 125 120 115 110 105 yy yy yy yy yy yy yy *As of May 2017; 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. 4

U. S. Employment in Service Industries, Monthly, 1990– 2017* 130 125 120 Millions 115 110 105 100 95 90 85 yy yy yy yy yy yy yy As of May 2017; 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. 5

Insurance Industry Employment Trends From 1998– 2013, Total Industry Employment Has Stayed in a Narrow Band of 2. 3– 2. 4 Million; in 2014 it Rose Above that Band

U. S. Employment in the Direct P/C Insurance Industry: 1990– 2017* 580 560 Thousands 540 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) 520 500 480 460 yy yy yy yy yy yy yy *As of April 2017; not seasonally adjusted; Does not include 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. 7

U. S. Employment in the Direct Life Insurance Industry: 1990– 2017* 600 550 Thousands 500 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. 450 400 350 300 yy yy yy yy yy yy yy *As of April 2017; not seasonally adjusted; Does not include 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. 8

U. S. Employment in the Direct Health. Medical Insurance Industry: 1990– 2017* 600 550 Thousands 500 450 400 Every 4– 5 Years BLS Reconciles its Data with Census Data; Sometimes This Reclassifies Employment Within Industries. This Increase, Spread Over March 2004– March 2005, Moved Some People from the Life/Annuities Sector. 350 300 250 200 yy yy yy yy yy yy yy *As of April 2017; not seasonally adjusted; Does not include 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. 9

U. S. Employment in the Reinsurance Industry: 1990– 2017* 50 45 Thousands 40 35 30 25 20 yy yy yy yy yy yy yy *As of April 2017; not seasonally adjusted; Does not include 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. 10

U. S. Employment in Insurance Agencies & Brokerages: 1990– 2017* 800 750 Thousands 700 650 600 550 500 yy yy yy yy yy yy yy *As of April 2017; 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. 11

U. S. Employment in Independent Claims Adjusting: 1990– 2017* 60 58 56 Thousands 54 52 50 48 46 44 42 40 yy yy yy yy yy yy yy *As of April 2017; 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. 12

U. S. Employment in Third-Party Administration of Insurance Funds: 1990– 2017* 190 180 170 Thousands 160 150 140 130 120 110 100 90 yy yy yy yy yy yy yy *As of April 2017; 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. 13

Insurance Information Institute Online www. iii. org Download at www. iii. org/insurance-topics/features/presentations Twitter: twitter. com/iii_research