The biggest numbers of layoffs were at GEICO and among farmers.
The majority of the staff reductions in the US insurance business in 2023 were at property and casualty (P&C) companies.
S&P Global Market Intelligence estimates that 6,800 jobs were lost in the P&C industry.
Twenty or more businesses laid off workers during the year, reflecting an industry-wide tendency among insurers to cut costs or concentrate their objectives.
With the announcement of the largest insurance layoff this year, Farmers laid off over 2,400 workers, or about 11% of its workforce.
A corporate representative informed S&P Global that the change was made to better assist Farmers agency owners and employees through the implementation of new, more efficient processes.
Following Farmers in the wake of its October announcement to lay off 2,000 workers—or around 6% of its overall workforce—is GEICO.
CEO Todd Combs had stated that the layoffs were made “after a comprehensive evaluation across all lines of business, and to better position ourselves for long-term profitability and growth.”
“This will allow us to become more dynamic, agile, and streamline our processes while still serving our customers,” Combs had previously informed staff members in a company-wide email.
Layoffs will be implemented by several property and casualty insurers in 2023, including USAA and Liberty Mutual. But when compared to Farmers and GEICO, their stats weren’t that impressive.
S&P Global reports that Liberty Mutual and USAA both reduced their workforces by 300 employees and 1,200 employees, respectively.
In addition to specialist MGA Hagerty and personal lines insurtech Hippo, several industry heavyweights have announced layoffs.
Insurance Business previously reported that Hippo had laid off 120 workers, or 20% of its staff.
At the same time, 83 positions, or 4% of Hagerty’s workforce, were reportedly eliminated in April.
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