Why Life Insurers Are Moving Quickly to Hire Underwriters
Chad Record
Vice President, US – Insurance & Reinsurance
The team here at Acumen has noticed an increased demand for life insurance Underwriters of late. Below are some of our thoughts on the reasons for that resurgence. Take a look and let us know if we missed anything.
1. Retirement & Workforce Attrition
Insurance underwriters are retiring fast. According to the Bureau of Labor Statistics, over the next 15 years, more than 400,000 insurance professionals are expected to retire. With these pending retirements, companies are working through succession plans to make sur they can keep up with caseload volumes.
2. Rebound in Life Insurance Demand
The pandemic triggered a surge in policy applications. MIB data shows U.S. life insurance applications hit their highest levels since 2015 in early 2020, with Q3 2020 up 9.2% year over year and July alone up 14.1% making the year overall grow by 4%, the steepest annual jump on record. That spike created heavy pressure for underwriting throughput.
3. Limits on Automated Underwriting
Automated systems typically handle routine files well. These systems tend to struggle with complex cases like jumbo face amounts, health impairments and older applicants which still require manual underwriter judgment.
4. New Product Innovation & Risk Appetite
New product launches like hybrid long‑term care riders, wellness‑linked life, and variable universal life insurance are growing fast. As insurers innovate, underwriting criteria shift and manual review surges during launch phases. Hybrid LTC products, in particular, are drawing significant interest as insurers aim for more flexible coverage models.
5. Competitive Shifts in the Industry
Private equity and insurtechs are rapidly scaling underwriting capacity. According to AM Best, PE holdings by U.S. insurers rose roughly 10.8% in 2023, totaling $146.2 billion, up from $132 billion in 2022. Many new entrants are quickly scaling underwriting teams to support growth and quality control.
6. Regulatory and Reinsurance Pressures
Regulators and reinsurers are reasserting oversight. While precise numbers on file reviews aren’t always public, broader compliance rules and reinsurer treaty conditions increasingly require individual human review, so insurers are scaling up manual oversight to stay compliant.