New data shows artificial intelligence and technology transformation are definitively reshaping hiring behavior in insurance and across the broader financial sector.
In a new Insurance Labor Market Study conducted in Q1 2026 by The Jacobson Group and the benchmarking division of Aon’s Strategy and Technology Group, around half of carriers said they plan to increase headcount over the next 12 months. However, job openings in finance and insurance have dropped to their lowest monthly level in a decade.
During a webinar presenting the findings, Jeff Rieder (pictured on the left), partner and head of benchmarking at Aon’s Strategy and Technology Group, noted that the average monthly number of finance-related job openings fell sharply between 2022 and the end of 2025. While the annual average sat at 281, by December it had fallen to roughly 138 – the lowest monthly level seen in 10 years for finance roles, including banking and wealth.
“We’ve really seen a large divergence that started back in 2023," Rieder said. "While 72% of companies expect to grow revenue, we’re at near-record lows in terms of those expecting to increase employee numbers. The only time it’s been lower for those expecting to increase employees was back in 2011.
“I really do think this might be an indication of how AI is starting to influence many of these activities and how companies are thinking about hiring.”
While only 7% of insurers plan to reduce staff over the next 12 months (down from 12% a year ago), the reason behind those reductions has shifted. Automation and process improvement were cited as the most common reasons for planned staff reductions, ahead of reorganization and overstaffing.
The data comes after years of core system investment in the insurance sector. From 2010 through 2023, carriers poured capital into new policy, billing and claims platforms. With those implementations largely complete, companies are beginning to realize sustained productivity benefits from modern, integrated systems.
Rieder suggested that many organizations are effectively pausing or moderating hiring plans while they assess how far these platforms – and a fast-moving generation of AI tools – can stretch existing teams.
“In areas like financial reporting and data synthesis and aggregation, roles in accounting are very likely to be displaced by AI,” said Jeff Blair (pictured on the right), senior vice president of executive search and business development at The Jacobson Group.
Call centres, data entry and other transactional operations work also face “some of the greatest displacement risk from AI advancements,” he added.
These shifts extend well beyond the insurance sector. Accounting and back-office operations are shared pain points across banks, wealth managers and corporate finance teams, pointing to a more competitive talent market for the highly specialized roles that remain and fewer entry points built purely around manual processing.
While the volume of back-office roles may shrink, demand is solid for experienced underwriters, technologists and analytics talent, according to the findings.
Technology, claims and underwriting are among the functions where insurers are most likely to increase staff over the next 12 months, with senior and complex underwriting in the P&C and E&S markets standing out as particular hotspots.
Underwriting demand, in particular, is being shaped by specialization. The Aon and Jacobson Group survey highlighted complex and senior underwriting needs in P&C, reflecting continued growth in E&S and specialty risks that require deeper expertise rather than generalized capacity.
The “hard-to-fill” list also remains consistent. Actuarial, executive, and analytics roles were the most difficult to fill for the fifth consecutive survey.
Turnover has eased, with an average six-month voluntary turnover at 5.4% compared with a 12-month average of 8.1%. Involuntary turnover sits lower over six months (3.5%) than 12 months (4.4%), and presenters noted a mix of performance management discipline and right-sizing as contributing factors.
Workplace flexibility also appears to be settling into a stable pattern. Over the next six months, 71% of companies expect most employees to work hybrid, and only 3% anticipate shifting toward more in-office requirements. Still, the share requiring in-office work every day has edged up to 7%, from 3% in the January 2025 study.
