P&C Insurers Shed Jobs

Jobs in the property & casualty insurance industry continue to erode.

According to data reported by the Insurance Information Institute (I.I.I.), P&C industry employment dipped by 2.9 percent in September 2010, from August 2010. The III crunched numbers provided by the Bureau of Labor Statistics.

Employment for P&C insurers sunk by 3,200 jobs, or 0.7 percent, from August to September 2010. Comparing year-over-year data, P&C insurers lost 13,700 jobs from September 2009 to September 2010.

Economists say the industry jobs will not return until the economy begins to see an overall growth in business. In addition, the P&C industry as a whole will not climb out of its doldrums until consumers begin to purchase more durable goods such as new cars. This will lead to premium growth, and will allow insurers to add more jobs to support the increase in business.

P&C insurance agents and brokers have experienced a similar decline in jobs. I.I.I. reports agent/broker jobs dropped by 3,200 (0.5 percent) from August to September; and by 17,800 (2.8 percent) from September 2009 to September 2010. Employment for agents and brokers is down by more than 53,000 jobs from its peak in December 2007.

Agent and broker income has been hit hard by a six year slump in written premiums which has led to a drop in commission income. This has forced some employees to seek jobs outside the industry, and it has prompted agency managers to cut back on its sales force and other support positions.

Claims adjusters have taken a major hit over the past year. From August to September, 100 claims adjuster jobs have been eliminated; and 4,300 jobs - 9 percent of that industry segment - have evaporated from September 2009 to September 2010.