2026-08-28 · Source: Carrier Management
Summary in 3 Points • Insurance sector employment fell by 21% year-on-year, with entry-level adjuster roles down 50% • Employee confidence in the insurance industry dropped 7 percentage points from July 2025 to July 2026 • Claims adjuster job postings decreased by 55% from their post-pandemic peak --- A recent report reveals a significant decline in insurance industry employment, with a 21% year-on-year drop and a 50% decrease in entry-level adjuster positions. The Glassdoor Employee Confidence Index for AI showed a record low, with the insurance sector contributing significantly to this decline. From July 2025 to July 2026, employee confidence in the insurance sector fell by 7 percentage points. Claims adjusters, who are highly critical of AI, saw job postings fall by 55% from their post-pandemic peak. This decline is more pronounced than the broader labour market's 36% decrease. The report suggests that fears of AI-driven job displacement and skill replacement are major factors in the negative sentiment among insurance employees.
The decline in insurance sector employment and confidence could impact the London Market by altering underwriting strategies and risk assessments. As AI continues to replace certain roles, insurers may need to adjust their workforce strategies and consider the implications for policy wording and coverage terms. The significant drop in claims adjuster roles may lead to changes in claims handling processes, potentially affecting claims costs and settlement times. Additionally, the focus on AI-driven skill transformation could influence the market's approach to talent acquisition and development, particularly for roles requiring human oversight alongside AI technologies.