Insurance Industry Employment Trends 1990 2018 Insurance Information

Insurance Industry Employment Trends: 1990– 2018 Insurance Information Institute March 2019 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 December 2018 Employment January 2019 Employment Change Carriers P-C Direct 519, 500 519, 400 -100 Life Direct 346, 700 344, 300 -2, 400 Health/Medical Direct 539, 100 538, 600 -500 Title & Other Direct 96, 200 95, 900 -300 Reinsurers 29, 800 30, 100 300 Agents/Brokers 831, 700 828, 400 -3, 300 Third-Party Administration 204, 800 204, 300 -500 56, 300 55, 300 -1, 000 Others Claims Adjusters *Data are through January 2019 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– 2019* 155 150 145 Millions 140 135 130 125 120 115 110 105 yy yy yy yy yy yy yy yy *As of February 2019; 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– 2019* 135 130 125 Millions 120 115 110 105 100 95 90 85 yy yy yy yy yy yy yy yy *As of February 2019; 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– 2019* 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 yy *As of January 2019; 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– 2019* 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 yy *As of January 2019; 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– 2019* 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 yy *As of January 2019; 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– 2019* 50 45 Thousands 40 35 30 25 20 yy yy yy yy yy yy yy yy *As of January 2019; 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– 2019* 900 850 Thousands 800 750 700 650 600 550 500 yy yy yy yy yy yy yy yy *As of January 2019; 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– 2019* 70 65 Thousands 60 55 50 45 40 yy yy yy yy yy yy yy yy *As of January 2019; 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– 2019* 210 190 Thousands 170 150 130 110 90 yy yy yy yy yy yy yy yy *As of January 2019; 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

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