The US insurance industry witnessed a significant wave of layoffs in 2023, with property and casualty (P&C) carriers carrying out the bulk of these employment cuts.
According to analysis by S&P Global Market Intelligence, the P&C sector saw a reduction of at least 6,800 jobs.
Throughout the year, approximately 20 different companies undertook staff reductions, signifying a broader trend within insurers to either refocus their core strategies or moderate financial outflows.
Farmers was the one to make the largest insurance layoff announcement this year, parting ways with roughly 2,400 employees or 11% of its workforce.
In a statement shared with S&P Global, a company spokesperson said the move was done to streamline operations and introduce innovative measures to support Farmers agency owners and staff.
Second to Farmers is GEICO, which announced in October that it was laying off some 2,000 employees or 6% of its total workforce.
CEO Todd Combs had said the cuts were done “to better position ourselves for long-term profitability and growth, and after a thorough evaluation across all lines of business.”
“This will allow us to become more dynamic, agile, and streamline our processes while still serving our customers,” Combs previously told staff members in a company-wide email.
Liberty Mutual and USAA are also among the P&C insurers to execute layoffs in 2023. However, their numbers were on a smaller scale compared to both Farmers and GEICO.
According to S&P Global, Liberty Mutual laid off around 1,200 employees, while USAA had cut 300 employees from its workforce.
Other notable layoffs in the industry included those announced by personal lines insurtech Hippo and specialty MGA Hagerty.
In a previous report by Insurance Business, it was revealed that Hippo had laid off 120 employees, equal to 20% of its workforce.
Meanwhile, Hagerty was reported to have cut 83 jobs in April, representing 4% of its workforce.
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