WORKFORCE CHARACTERISTICS AND WORKFORCE DEVELOPMENT IN OHIO S INSURANCE INDUSTRY

WORKFORCE CHARACTERISTICS AND WORKFORCE DEVELOPMENT IN OHIO S INSURANCE INDUSTRY Bill LaFayette, Ph.D. Owner, Regionomics 2013 1293 S. Fourth St., Columbus, OH 43206 www.regionomicsllc.com 1

WORKFORCE CHARACTERISTICS AND WORKFORCE DEVELOPMENT IN OHIO S INSURANCE INDUSTRY Bill LaFayette, Ph.D. Owner, Regionomics 2013 Summary Ohio s insurance industry will require approximately 26,000 new workers to fill positions coming open between now and 2020 whether newly created through growth or vacant as a result of employee turnover. If these positions are not filled, the growth of Ohio insurance companies will be suboptimal. Private- sector insurance carriers and related activities in 2010 contributed $17.4 billion to Ohio GDP a contribution one- third greater than would be expected in an economy Ohio s size. The 37 percent growth between 2002 and 2010 exceeded the 32 percent national average. There were nearly 95,000 insurance industry jobs in Ohio in 2011 an employment concentration 39 percent greater than average. Even after the employment losses during the recession, industry employment in Ohio is 1.8 percent higher than its level a decade ago, while U.S. employment is 3.5 percent lower. Thus, the industry helped to offset to a degree the much weaker- than- average growth of Ohio employment overall. Not all components of the insurance industry have an above- average concentration in Ohio. Property and casualty insurers have almost twice the employment that would be expected, while life and health carriers employment is slightly below average. Concentrated pockets of insurance employment exist throughout the state, including in a number of smaller metropolitan areas and rural counties. Employers in these counties may have significant problems finding qualified workers because of the smaller total workforce and the smaller share of college graduates that is common outside of Ohio s major metropolitan areas. State and federal labor market data are used to generate distributions of employment by occupation, and specific employment needs in each occupation. Projected net growth represents only a portion of the total need for new employees. A substantial need is also created through turnover in existing positions. Backfilling existing positions generates 79 percent of the Ohio insurance industry s total need for workers through 2020. The implementation of the Affordable Care Act is likely to lead to higher employment and a demand for insurance workforce greater than the 26,000 implied by the analysis. The elimination of the ability to exclude prospects based on pre- existing conditions is likely to increase the risk of health insurance pools, despite the entry of healthy people who formerly self- insured. Managing these risks is likely to increase demand for actuaries. The customer base is also likely to become far more granular, increasing the need for customer service representatives and financial and marketing functions.

WORKFORCE CHARACTERISTICS AND WORKFORCE DEVELOPMENT IN OHIO S INSURANCE INDUSTRY Bill LaFayette, Ph.D. Owner, Regionomics 2013 Introduction This report is an update and expansion of a workforce analysis completed in May 2011 for a task force of insurance industry executives representing companies throughout Ohio. There is a keen understanding among these leaders that without a trained, capable workforce, the industry s growth and competitiveness will be severely hampered. The purpose of this report is to provide an overview of the geographic dispersion of Ohio s insurance employment and its growth over the last decade, and identify the occupations most critical for the industry s continued growth and the number of workers needed to fill those positions in coming years. The principal finding is that Ohio s insurance industry will require approximately 26,000 new workers to fill positions coming open between now and 2020 whether newly created through growth or vacant as a result of employee turnover. The key point is that if these positions are not filled, the growth of Ohio insurance companies will be suboptimal. In the extreme case, Ohio might lose these companies to other states that are able to offer a convincing argument that they are better equipped to provide a steady flow of talent. Ohio s Insurance industry The size and importance of Ohio s insurance industry can be documented in several ways. One is the industry s contribution to the state s output, or Gross Domestic Product (GDP). Private- sector insurance carriers and related activities in 2010 contributed $17.4 billion to Ohio GDP a contribution one- third greater than would be expected in an economy Ohio s size. Insurance- related GDP grew 37 percent after inflation between 2002 and 2010, versus U.S. growth of 32.1 percent. Insurance employment is also a larger- than- average share of total Ohio employment and has grown much faster than average over the past decade. There were nearly 95,000 insurance industry jobs in Ohio in 2011 an employment concentration 39 percent greater than average. As Figure 1 shows, insurance employment grew far faster than average during the expansion of the last decade and declined at a slower- than- average rate during the recession. Employment grew 6.3 percent in Ohio between 2003 and 2007, compared to U.S. growth of 2.2 percent. Employment declined 4.2 percent between 2007 and 2011 in Ohio, while falling 5.6 percent nationwide. Thus, the industry softened two unfavorable employment trends during the past decade. Total Ohio employment grew less than 0.5 percent between 2003 and 2007, far below the 10 percent U.S. rate. Ohio was one of only four states with fewer jobs at the end of the expansion in 2007 than at the end of the previous expansion in 2001. Total Ohio employment peaked in 2006, one year sooner than the U.S., and fell 7.6 percent from that peak, a decline more than one- third greater than the U.S. average. 3

Figure 1 Ohio and U.S Insurance Carriers and Related Activities Employment Growth, 2003-2011 108.0 106.0 104.0 Index: 2002 = 100.0 102.0 100.0 98.0 96.0 94.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Ohio U.S. Source: U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages. As shown in Figure 2 on the next page, this better- than- average employment growth has continued more recently as well. This chart tracks cumulative employment growth on a monthly basis beginning in January 2010, near the trough of Ohio and U.S. employment. These totals are less reliable than those in Figure 1 particularly those for June 2012 and later but as the chart shows, net growth in Ohio employment since January 2010 has been 3.3 percent, more than triple the 1.0 percent national average. It is worth noting that U.S. insurance employment did not begin growing until May 2011, nearly a year an a half later than most industries. Insurance employment in Ohio is at record highs; U.S. employment is still 6.5 percent below its 2007 peak. 4

Figure 2 Ohio and U.S Insurance Carriers and Related Activities Employment Growth, Jan. 2010 Mar. 2013 Seasonally Adjusted 106.0 105.0 104.0 103.0 102.0 101.0 100.0 99.0 98.0 97.0 1/10 3/10 5/10 7/10 9/10 11/10 1/11 3/11 5/11 7/11 9/11 11/11 1/12 3/12 5/12 7/12 9/12 11/12 1/13 3/13 Ohio U.S. Source: U.S. Bureau of Labor Statistics, Current Employment Statistics. Seasonal adjustment of Ohio employment by Regionomics. The fact that Ohio s insurance employment is greater than average and is growing faster than average as well as the fact that Ohio insurance companies serve significant numbers of customers outside of Ohio implies that it is an economic driver of the state s economy. Economic drivers lead to the state s economy performing better than it otherwise would. Further, because drivers serve customers outside of Ohio, they bring dollars into the state s economy the only way that household incomes can increase and Ohioans living standards can improve. For these reasons, economic drivers deserve special attention by economic and workforce development. Another implication of the fact that the industry is larger and faster- growing than average is that the companies in the industry are more competitive than their counterparts elsewhere because of some set of economic and/or environmental characteristics in Ohio that favor these companies. Determining the array of characteristics making Ohio insurance companies unusually successful is beyond the scope of this study, but doing so is an important task. Part of nurturing the growth of the drivers is caring for the underlying factors that make them successful in the first place. Workforce quality is certainly one of those factors. Table 1 on the next page analyzes the composition, growth, and relative strength of Ohio s insurance industry. This is a nested classification, with successively more specific components a subset of the broader component above; this is indicated in the table by indenting the industries that are subsets of the broader category. Insurance Carriers and Related Activities is the broad category, which consists of two primary components: Insurance Carriers, and Insurance Agencies and Brokerages and Other 5

Activities. Insurance Carriers in turn includes Direct Life and Health Insurance Carriers; and Direct Insurers, except Life and Health. The table compares Ohio to U.S. employment growth through the expansion and the contraction, unpacking the better- than- average employment growth in Ohio. Comparing 2002-2007 Ohio and U.S. growth, it is clear that the key reason for the above- average growth of insurance employment during the expansion was property and casualty insurers, which are a large share of total employment (more than one- third of the total) and growth of more than 10 percent, versus a small loss at the national level. While health insurers growth also exceeded the average, life insurance companies shed positions at a faster rate than their counterparts elsewhere. The contributions to the smaller- than- average recession declines were much more balanced: most segments did better than average, with health insurers turning in an especially impressive performance. The final column of Table 1 presents each component s Location Quotient (LQ). This is a measure of relative employment concentration, and is calculated by dividing the share of total payroll employment accounted for by the industry in Ohio by its employment share nationally. LQs greater than one indicate industries with greater- than- average concentrations of employment in Ohio. (The overall LQ of 1.143 can be interpreted as a concentration of employment 14.3 percent higher than what would be expected in an economy Ohio s size.) Certain components are far more concentrated than are others; property and casualty insurers have almost twice the employment that would be expected, while life and health carriers employment is slightly below average. Agencies and brokerages are also below average, but that is to be expected: these establishments serve primarily a local market, so an LQ far greater than Table 1 Employment, Growth, and Concentration of Ohio s Insurance Industry Ohio emp. Change, 2002-07 Change, 2007-11 LQ** Industry* 2011 Ohio U.S. Ohio U.S. 2011 Insurance carriers and related activities 94,736 6.3% 2.2% - 4.2% - 5.6% 1.143 Insurance carriers 61,814 2.6% - 2.7% - 3.6% - 7.6% 1.281 Direct life and health insurance carriers 23,372-5.4% - 3.4% 3.7% - 6.2% 0.940 Direct life insurance carriers 10,136-16.4% - 11.0% - 5.6% - 7.5% 0.896 Direct health & medical ins. carriers 13,237 7.4% 4.0% 12.1% - 5.2% 0.976 Direct insurers, except life and health 38,116 7.7% - 1.4% - 7.6% - 9.4% 1.707 Direct property and casualty insurers 36,152 10.6% - 1.7% - 4.6% - 5.3% 1.935 Direct title insurance carriers 1,490-22.3% - 3.5% - 48.9% - 35.1% 0.472 Other direct insurance carriers 474 38.8% 30.6% 4.4% 2.5% 0.974 Reinsurance carriers 325 1.3% - 13.1% 3.2% - 3.5% 0.310 Insurance agencies and brokerages and other activities 32,922 13.7% 10.1% - 5.4% - 2.8% 0.950 Insurance agencies and brokerages 23,899 9.0% 9.1% - 6.6% - 5.3% 0.928 Other insurance related activities 9,023 29.1% 12.9% - 2.1% 4.7% 1.014 Claims adjusting 1,488 9.6% 9.4% 27.7% - 1.8% 0.742 Third party admin. of insurance funds 6,522 27.9% 10.8% - 2.3% 7.6% 1.337 All other insurance related activities 1,013 60.3% 22.4% - 26.2% 4.2% 0.503 *Indented industries are subsets of the industry above. **LQ = Location quotient, the percentage of total Ohio employment in the industry divided by the percentage of U.S. employment in the industry. LQ greater than 1.0 implies a higher- than- average concentration of employment in the industry. Source: Calculated from U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages. 6

1.0 would be a danger sign indicating overconcentration. However, one of the subcategories of Other Insurance- Related Activities that does have a high concentration is third party administration. Because this industry is a conduit between insurance companies and employers, access to the expertise of former insurance carrier employees that is available to these companies is likely a significant advantage that Ohio- based third- party administrators enjoy. Insurance Employment at the County Level An important point for insurance industry workforce planning is that concentrated pockets of insurance employment exist throughout the state, including in a number of smaller Metropolitan Statistical Areas (MSAs) and rural counties. This is shown in Figure 3, which color- codes Ohio counties in terms of their overall insurance location quotient. Insurance employment is not reported for the 19 counties in white. Confidentiality restrictions require employment to be suppressed in cases where employment for any single business could be deduced either because of a very small number employers or a single dominant employer. Information from a different source Figure 3 County- Level Location Quotients for Insurance Carriers and Related Activities, 2011 LQ 1.2/higher LQ 0.7-1.2 LQ 0.36-0.69 LQ 0.26-0.35 LQ 0.34/lower No data Source: Calculated from U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages. 7

(the Census Bureau s County Business Patterns) suggests that none of these counties has an insurance employment concentration greater than 0.4. Table 2 presents employment and employment growth in the 13 counties with LQ greater than the state average the counties colored dark blue in Figure 3. From a workforce planning standpoint, LQ is a more significant indicator of a county requiring workforce development focus than is its sheer number of jobs. A table of counties with the greatest employment size would be dominated by the large urban counties. These counties have large numbers of insurance workers, but they also have large numbers of available workers and are part of MSAs from which even more workers can be drawn. This is true of the suburban counties in Table 2 as well. On the other hand, small MSA and rural counties (for instance, Clark, Crawford, Monroe, and Van Wert in Table 2) have smaller total employment but may have even greater problems finding qualified workers because of the smaller total workforce and the smaller share of college graduates that is common in the workforce of the counties outside of Ohio s major metropolitan areas. Table 2 Level and Growth of Insurance Employment in High- Concentration Ohio Counties Employmt. Percentage change LQ* County County seat 2011 2003-2007 2007-2011 2011 Butler Hamilton 5,575 30.4% - 2.1% 2.551 Clark Springfield 2,018 612.7% 12.8% 2.662 Clermont Batavia 1,515 16.7% - 7.6% 1.839 Crawford Bucyrus 267 1.8% - 4.3% 1.282 Cuyahoga Cleveland 18,164 5.9% - 12.5% 1.676 Delaware Delaware 2,890 141.1% 21.0% 2.425 Franklin Columbus 21,374-0.3% - 8.0% 2.064 Hamilton Cincinnati 10,307-8.8% - 11.1% 1.352 Licking Newark 1,669 13.2% 11.6% 2.047 Monroe Woodsfield 129 N/A N/A 2.246 Summit Akron 4,799 8.0% 1.8% 1.200 Van Wert Van Wert 430 12.0% - 5.7% 2.740 Warren Lebanon 2,589 34.0% 35.2% 2.205 Ohio 6.3% - 4.2% 1.143 United States 2.2% - 5.6% Source: Calculated from U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages. Statewide Occupational Employment Distribution and Projection A Bureau of Labor Statistics database, the Industry- Occupation Employment Matrix, provides national- level estimates of the number of workers employed in specific occupations within a wide array of industries as of 2010 and 2020. The insurance industries available include Direct Insurers, except Life and Health; Insurance Agencies and Brokerages; and Other Insurance- Related Activities. (See Table 1; regrettably, Direct Life and Health Insurance Carriers are not available in the database.) If we assume that the distribution of occupations in Ohio companies is typical of the national distribution, estimates of occupational employment in Ohio insurance companies in 2011 can be easily generated by multiplying the national percentage of employment in each occupation by the corresponding 2011 employment total from Table 1. 8

Further, combining the 2020 Employment Matrix projections with 2010-2020 net industry growth projections for Ohio from the Ohio Labor Market Information Bureau generates occupation- level employment projections for the state that incorporate both industry growth and anticipated shifts in demand for specific occupations by the insurance industry. Table 3 shows the Ohio net growth projections as well as the 2010-2020 U.S. growth projections from the Bureau of Labor Statistics for the overall economy and for the insurance industry. Projected Ohio growth for insurance carriers in the coming decade is much stronger than the national average. Agency, brokerage, and other activity growth is less, however likely because Ohio s slow population growth will generate less growth in the demand for insurance agency services. Table 3 2010-2020 Net Growth Projections for Insurance- Related Industries Ohio employment (000) Ohio change U.S. change 2010 2020 Change 2000-10 2010-20 2000-10 2010-20 Total, all industries 5,368.9 5,867.0 498.1-10.0% 9.3% - 2.2% 14.3% Insurance carriers and related activities 95.6 103.0 7.4-0.6% 7.8% 0.8% 8.7% Insurance carriers 62.3 65.5 3.2-6.6% 5.2% - 4.6% 3.4% Agencies, brokerages, and other insurance- related activities 33.3 37.4 4.2 11.1% 12.6% 10.5% 17.0% Source: 2010-2020 Employment Projections, Ohio Labor Market Information Bureau and U.S. Bureau of Labor Statistics. The net employment changes derived from these calculations represent only a portion of the total need for new employees, however; a substantial need is also created through turnover in existing positions. The Ohio Occupational Employment Projections include estimates of the annual need created by turnover within each specific occupation (across all industries). Multiplying the annual need by ten gives the ten- year all- industry turnover for the occupation. This is divided by the 2010 all- industry employment to get the ten- year turnover rate; the ten- year rate is multiplied by 0.9 to get the nine- year rate. The nine- year rate times the estimate of 2011 employment in the occupation within the specific insurance industry gives the 2011-2020 replacement need for the occupation within the industry. The replacement need plus the growth need equals the total need. In most cases, the replacement need is far larger than the growth need; in total, replacement needs account for 79 percent of the total workforce need. The Appendix contains tables providing growth and replacement needs for workers in total and for the most prevalent occupations within the available insurance industries. Table A- 1 features Direct Insurers, except Life and Health. Insurance Agencies and Brokerages are in Table A- 2, and Other Insurance- Related Activities are in Table A- 3. Table A- 4 combines the information in Tables A- 1 through A- 3 to provide occupational needs for these industries in total. For the industry overall, four occupations sales agents, claims adjusters, claims and policy processing clerks, and customer service representatives together account for a need of nearly 10,900, more than half of the 19,600 total. Again, however, occupational needs for life and health insurers are not part of this overall need because this industry is not included in the Employment Matrices. In many respects the staffing pattern for life and health insurers likely resembles that of the other types of direct carriers in Table A- 1, except for a greater relative need for actuaries and for medical professionals such as registered nurses. 9

Because life and health insurers are not represented in this analysis, the 19,600- employee need reported in Table A- 4 understates the total industry- wide need. A rough approximation of the total need can be obtained by noting that the total need for all three available industries as a percentage of 2011 employment is quite similar between 27.2 percent and 27.9 percent so the total need for new workers in life and health insurance companies probably lies in this range as well. Life and health insurers employed 23,696 in 2010 and 23,372 in 2011; the latter total is reported in Table 1. From Table 3, insurance carriers employment is expected to increase 5.2 percent between 2010 and 2020; this implies life and health insurance employment of 24,921 in 2020. Net nine- year growth is thus 1,549. The most appropriate total need percentage is probably the 27.2 percent for direct non- life and health carriers rather than the 27.6 percent for the combined three industries. This implies a total growth and replacement need of 6,358; subtracting the growth need from the total need gives a replacement need of 4,809. Adding life and health carriers needs to the total for the other industries implies that Ohio s insurance industry will need a total of 26,000 new workers between 2011 and 2020. These calculations and the resulting needs are summarized in Table 4. 1 Table 4 Occupational Growth and Replacement Needs, All Insurance Industries Including Direct Life and Health Carriers 2011 2020 Growth Turnover Total need Pct. of 2011 Industries other than life & health* 71,038 75,217 4,179 15,417 19,596 27.6% Life and health 23,372 24,921 1,549 4,809 6,358 27.2% Total industry 94,410 100,138 5,728 20,227 25,954 27.5% *From Table A- 4. The Affordable Care Act and the Health Insurance Industry An implicit assumption in the ten- year projections analyzed above is that although they reflect anticipated changes in technology, the industry s status quo will continue fundamentally unchanged. That assumption fails in one important case: the passage of the Affordable Care Act (ACA) and its affirmation in the Supreme Court in June 2012 will have potentially substantial impacts on the health insurance industry. While no detailed analysis seems to exist regarding the impact of the ACA on insurance industry employment, considering the implications of the law implies the general conclusion that employment is likely to increase, both for carriers and agencies. Beginning next year, everyone (with a few exceptions) will be required to buy health insurance. Those who fail to do so other than those who do not earn enough to owe income tax will be charged a fine equal in 2014 to one percent of income or up to $285 per family, whichever is higher. By 2016, the fine rises to 2.5 percent of income or up to $2,085 per family, whichever is higher. Insurance costs will be subsidized for anyone earning less than 400 percent of the federal poverty threshold, or $45,960 for an individual and $94,200 for a family of four in 2013. Insurers cannot deny people insurance on the basis of pre- existing conditions. However, the public option which would have drawn customers away from private insurance companies was not part of the final law. 1 Observant readers will note a slight difference between total 2011 Ohio insurance employment in Table 4 and the total reported for all industries in Table 1. The Table 4 total does not include the 325 employees of reinsurance carriers; reinsurance is not part of any other industry and is not covered in the analysis. 10

These provisions will induce numerous healthy people who currently self- insure to buy insurance, as well as those previously uninsurable. Nationally, 46.4 million people lacked health insurance at some point during 2011, as did 1.35 million Ohioans, according to estimates in the American Community Survey. Madhavan argues that this creates both challenges and opportunities for insurance carriers. The challenge is managing the risk of those with pre- existing conditions. Madhavan recommends that these be grouped in two categories those whose conditions are manageable with medications and lifestyle changes, and those with conditions that are severe and leading to high medical loss ratios. This requires insurance carriers to implement more sophisticated risk analysis and management practices. The opportunity is that the potential customer base is much larger and more retail- oriented. Madhavan recommends that insurance carriers become more deliberate about targeting the right product to potential customers in order to increase sales. Nussbaum argues that the industry in general will need to shift its marketing strategy to a far more retail- oriented approach rather than focusing on a human resources director who may be choosing coverage for a staff of several hundred. He cites a United Healthcare customer service center in a mall as an example of this approach. These points imply that staffing patterns in health insurance may shift. There is likely to be greater demand for actuaries to quantify the changing risk of the expanded customer base. The need for customer service representatives and back- office financial functions is likely to increase to handle the larger, more granular customer base. Marketing functions are likely to be in greater demand as well to help capitalize upon the opportunities that the ACA will provide. The demand for services of insurance agencies and hence their employment is likely to increase as well. In general, the passage of the ACA suggests that insurance employment and the demand for insurance workforce is likely to be greater than the 26,000 implied by the analysis above. Works Cited Madhavan, Anand. "Prospecting For Members." Best's Review 113.8 (2012): 44-46. Business Source Premier. Web. 16 May 2013. Nussbaum, Alex. "Buy Your Insurance Next To The Cinnabon." Bloomberg Businessweek 4313 (2013): 20-21. Business Source Premier. Web. 16 May 2013. 11

APPENDIX Table A- 1 Occupational Growth and Replacement Needs, Direct Insurers, except Life and Health Occupation 2011 2020 Growth Turnover Total need Pct. of 2011 Total, All Occupations 38,116 40,279 2,163 8,205 10,369 27.2% Claims Adjusters, Examiners, and Investigators 6,251 6,606 355 1,444 1,799 28.6% Insurance Claims and Policy Processing Clerks 3,964 3,786-178 1,074 896 22.5% Insurance Underwriters 3,164 3,665 502 930 1,432 45.0% Customer Service Representatives 3,126 3,303 177 803 980 31.2% Insurance Sales Agents 2,401 2,820 418 497 916 37.9% Title Examiners, Abstractors, and Searchers 1,067 1,047-20 145 125 11.6% First- Line Supervisors of Office and Administrative Support Workers 991 1,047 56 240 296 29.7% Office Clerks, General 991 1,047 56 159 215 21.6% Business Operations Specialists, All Other 877 926 50 152 202 22.9% Management Analysts 800 846 45 118 163 20.3% General and Operations Managers 648 604-44 109 65 10.0% Computer Systems Analysts 648 685 37 110 147 22.5% Executive Secretaries and Executive Administrative Assistants 648 685 37 79 115 17.7% Financial Managers 610 644 35 101 136 22.1% Accountants and Auditors 610 644 35 119 153 25.0% Secretaries and Administrative Assistants, Except Legal, Medical, and Executive 610 564-46 74 28 4.6% Bookkeeping, Accounting, and Auditing Clerks 534 564 30 53 83 15.6% Software Developers, Applications 496 524 28 47 75 15.0% Lawyers 496 524 28 85 113 22.8% Insurance Appraisers, Auto Damage 419 403-16 98 81 19.3% Computer Support Specialists 419 443 24 100 123 29.3% Managers, All Other 343 363 19 69 88 25.7% Financial Analysts 305 322 17 58 76 24.7% Sales Managers 267 282 15 70 85 31.8% Computer and Information Systems Managers 267 282 15 37 52 19.4% Training and Development Specialists 267 322 55 41 96 35.8% Computer Programmers 267 282 15 56 71 26.6% Loan Interviewers and Clerks 267 282 15 45 60 22.3%

Table A- 1 Occupational Growth and Replacement Needs, Direct Insurers, except Life and Health (Continued) Occupation 2011 2020 Growth Turnover Total need Pct. of 2011 Loan Officers 229 242 13 53 66 28.8% Information Security Analysts, Web Developers, and Computer Network Architects 229 242 13 31 44 19.0% Sales Representatives, Services, All Other 229 242 13 61 74 32.1% Network and Computer Systems Administrators 191 242 51 29 80 41.9% Actuaries 191 242 51 104 155 80.9% Paralegals and Legal Assistants 191 242 51 24 76 39.4% First- Line Supervisors of Non- Retail Sales Workers 191 201 11 43 54 28.3% Billing and Posting Clerks 191 201 11 30 41 21.3% Receptionists and Information Clerks 191 201 11 52 63 32.9% Marketing Managers 152 161 9 40 49 31.9% Administrative Services Managers 152 161 9 34 43 27.8% Compliance Officers 152 201 49 17 66 42.8% Human Resources, Training, and Labor Relations Specialists, All Other 152 161 9 23 32 20.8% Computer Occupations, All Other 152 161 9 26 35 22.6% Telemarketers 152 161 9 29 38 24.8% File Clerks 152 161 9 36 45 29.3% Mail Clerks and Mail Machine Operators, Except Postal Service 152 161 9 27 35 23.1% Chief Executives 114 81-34 27-7 - 6.0% Financial Specialists, All Other 114 121 6 22 28 24.8% 13

Table A- 2 Occupational Growth and Replacement Needs, Insurance Agencies and Brokerages Occupation 2011 2020 Growth Turnover Total need Pct. of 2011 Total, All Occupations 23,899 25,312 1,413 5,101 6,513 27.3% Insurance Sales Agents 8,269 9,467 1,198 1,717 2,914 35.0% Customer Service Representatives 3,226 3,240 14 831 844 26.0% Insurance Claims and Policy Processing Clerks 2,748 3,113 365 746 1,111 40.1% Office Clerks, General 1,482 1,493 12 238 249 16.7% Secretaries and Administrative Assistants, Except Legal, Medical, and Executive 1,147 1,063-84 139 55 4.8% Claims Adjusters, Examiners, and Investigators 645 658 13 149 162 25.0% Bookkeeping, Accounting, and Auditing Clerks 550 557 7 55 62 11.2% Insurance Underwriters 526 532 6 155 161 30.3% First- Line Supervisors of Office and Administrative Support Workers 454 456 2 110 112 24.4% Receptionists and Information Clerks 454 456 2 124 126 27.6% Executive Secretaries and Executive Administrative Assistants 454 405-49 55 6 1.3% General and Operations Managers 430 405-25 73 47 10.9% Accountants and Auditors 215 228 13 42 55 25.2% First- Line Supervisors of Non- Retail Sales Workers 215 228 13 49 62 28.5% Sales Managers 167 152-15 44 29 17.0% Financial Managers 143 152 8 24 32 22.3% Securities, Commodities, and Financial Services Sales Agents 143 127-17 36 19 13.2% Telemarketers 119 127 7 23 30 25.1% Market Research Analysts and Marketing Specialists 96 127 31 23 54 56.1% Personal Financial Advisors 96 101 6 10 16 16.2% Computer Support Specialists 96 76-20 23 3 3.2% Sales Representatives, Services, All Other 96 76-20 25 6 6.0% File Clerks 96 76-20 23 3 3.2% Chief Executives 72 51-21 17-4 - 5.8% Management Analysts 72 51-21 11-10 - 14.5% Business Operations Specialists, All Other 72 76 4 12 17 23.1% Computer Systems Analysts 72 51-21 12-9 - 12.3% Network and Computer Systems Administrators 72 76 4 11 15 21.1% Billing and Posting Clerks 72 76 4 11 16 21.6% Data Entry Keyers 72 51-21 11-10 - 13.4% Marketing Managers 48 51 3 13 15 32.1% 14

Table A- 2 Occupational Growth and Replacement Needs, Insurance Agencies and Brokerages (Continued) Occupation 2011 2020 Growth Turnover Total need Pct. of 2011 Administrative Services Managers 48 51 3 11 14 28.1% Computer and Information Systems Managers 48 51 3 7 9 19.6% Insurance Appraisers, Auto Damage 48 25-22 11-11 - 23.5% Compliance Officers 48 51 3 5 8 16.8% Human Resources, Training, and Labor Relations Specialists, All Other 48 51 3 7 10 21.0% Compensation, Benefits, and Job Analysis Specialists 48 51 3 7 10 21.1% Training and Development Specialists 48 51 3 7 10 21.0% Financial Analysts 48 51 3 9 12 24.9% Financial Specialists, All Other 48 51 3 9 12 25.0% Computer Programmers 48 51 3 10 13 26.8% Public Relations Specialists 48 51 3 12 14 29.9% Janitors and Cleaners, Except Maids and Housekeeping Cleaners 48 51 3 8 11 22.8% Retail Salespersons 48 51 3 13 16 32.3% Switchboard Operators, Including Answering Service 48 25-22 8-14 - 29.3% Mail Clerks and Mail Machine Operators, Except Postal Service 48 51 3 8 11 23.3% 15

Table A- 3 Occupational Growth and Replacement Needs, Other Insurance- Related Activities Occupation 2011 2020 Growth Turnover Total need Pct. of 2011 Total, All Occupations 9,023 9,626 603 1,914 2,517 27.9% Claims Adjusters, Examiners, and Investigators 1,823 1,964 141 425 566 30.6% Customer Service Representatives 929 1,011 81 241 322 34.2% Insurance Claims and Policy Processing Clerks 731 799 68 200 268 36.1% Office Clerks, General 406 443 37 66 102 24.8% First- Line Supervisors of Office and Administrative Support Workers 325 356 31 79 111 33.6% Insurance Sales Agents 316 347 31 66 97 30.2% General and Operations Managers 244 231-13 41 29 11.6% Bookkeeping, Accounting, and Auditing Clerks 244 270 26 24 50 20.4% Secretaries and Administrative Assistants, Except Legal, Medical, and Executive 235 231-4 29 25 10.6% Executive Secretaries and Executive Administrative Assistants 199 212 13 24 38 18.7% Accountants and Auditors 189 202 13 37 50 25.9% Insurance Underwriters 189 202 13 56 69 35.8% Registered Nurses 144 164 19 24 43 29.5% Billing and Posting Clerks 135 144 9 22 31 22.3% Business Operations Specialists, All Other 126 135 8 22 31 23.8% Financial Managers 108 116 7 18 25 23.1% Management Analysts 108 116 7 16 23 21.2% Compensation, Benefits, and Job Analysis Specialists 99 96-3 15 12 12.2% Computer Systems Analysts 99 106 7 17 24 23.5% Software Developers, Applications 99 106 7 9 16 15.9% Computer Support Specialists 99 106 7 24 30 30.2% Data Entry Keyers 99 87-13 16 3 3.2% Sales Representatives, Services, All Other 81 87 5 22 27 33.0% Insurance Appraisers, Auto Damage 72 67-5 17 12 16.7% Computer Programmers 72 67-5 15 11 14.4% Actuaries 72 77 5 40 45 60.8% Receptionists and Information Clerks 72 77 5 20 25 33.8% Computer and Information Systems Managers 63 67 4 9 13 20.4% Network and Computer Systems Administrators 63 77 14 10 24 36.8% Mail Clerks and Mail Machine Operators, Except Postal Service 63 67 4 11 15 24.0% Administrative Services Managers 54 58 4 12 16 28.8% 16

Table A- 3 Occupational Growth and Replacement Needs, Other Insurance- Related Activities (Continued) Occupation 2011 2020 Growth Turnover Total need Pct. of 2011 Financial Analysts 54 58 4 10 14 25.7% File Clerks 54 39-16 13-3 - 4.8% Chief Executives 45 39-7 11 4 8.9% Sales Managers 45 48 3 12 15 32.8% Compliance Officers 45 48 3 5 8 17.5% Training and Development Specialists 45 48 3 7 10 21.7% Bill and Account Collectors 45 48 3 8 11 24.1% Human Resources, Training, and Labor Relations Specialists, All Other 36 39 2 6 8 21.8% Market Research Analysts and Marketing Specialists 36 48 12 9 21 56.8% Personal Financial Advisors 36 39 2 4 6 16.9% Financial Specialists, All Other 36 39 2 7 9 25.7% Information Security Analysts, Web Developers, and Computer Network Architects 36 39 2 5 7 19.9% Lawyers 36 39 2 6 9 23.7% Securities, Commodities, and Financial Services Sales Agents 36 39 2 9 12 31.5% Correspondence Clerks 36 29-7 10 3 7.0% 17

Table A- 3 Occupational Growth and Replacement Needs, Combined Insurance Industries, except Life and Health Occupation 2011 2020 Growth Turnover Total need Pct. of 2011 Total, All Occupations 71,038 75,217 4,179 15,417 19,596 27.6% Insurance Sales Agents 10,986 12,633 1,647 2,280 3,927 35.5% Claims Adjusters, Examiners, and Investigators 8,719 9,228 509 2,019 2,528 28.8% Insurance Claims and Policy Processing Clerks 7,443 7,699 255 2,019 2,275 30.4% Customer Service Representatives 7,281 7,554 272 1,874 2,147 29.3% Insurance Underwriters 3,879 4,399 520 1,141 1,661 42.6% Secretaries and Administrative Assistants, Except Legal, Medical, and Executive 1,992 1,858-134 242 109 5.4% First- Line Supervisors of Office and Administrative Support Workers 1,770 1,859 89 429 518 29.1% Bookkeeping, Accounting, and Auditing Clerks 1,327 1,390 63 132 196 14.6% General and Operations Managers 1,322 1,240-82 223 141 10.6% Executive Secretaries and Executive Administrative Assistants 1,301 1,302 1 158 159 12.2% Title Examiners, Abstractors, and Searchers 1,091 1,073-19 148 129 11.8% Business Operations Specialists, All Other 1,075 1,137 62 186 249 23.0% Accountants and Auditors 1,014 1,074 60 198 258 25.2% Management Analysts 980 1,012 32 145 176 17.9% Financial Managers 862 912 50 143 193 22.3% Computer Systems Analysts 819 841 22 139 161 19.6% Receptionists and Information Clerks 717 734 17 197 214 29.6% Software Developers, Applications 619 655 36 58 94 15.2% Computer Support Specialists 614 625 11 146 157 25.4% Lawyers 555 587 32 96 128 22.8% Insurance Appraisers, Auto Damage 539 495-44 126 82 15.2% Sales Managers 479 482 3 126 129 26.7% First- Line Supervisors of Non- Retail Sales Workers 433 468 35 99 134 30.7% Financial Analysts 407 431 24 78 102 24.9% Sales Representatives, Services, All Other 405 404-1 108 107 26.1% Billing and Posting Clerks 398 422 24 63 87 21.7% Managers, All Other 394 417 23 79 102 25.7% Computer Programmers 387 400 13 81 95 24.3% Computer and Information Systems Managers 378 400 22 52 75 19.6% Market Research Analysts and Marketing Specialists 360 457 96 87 183 50.5% Training and Development Specialists 360 421 61 55 116 32.1% 18

Table A- 3 Occupational Growth and Replacement Needs, Combined Insurance Industries, except Life and Health (Continued) Occupation 2011 2020 Growth Turnover Total need Pct. of 2011 Network and Computer Systems Administrators 325 395 69 50 119 36.3% File Clerks 302 276-27 72 45 14.9% Loan Interviewers and Clerks 291 307 17 49 65 22.3% Telemarketers 290 307 17 56 73 25.0% Information Security Analysts, Web Developers, and Computer Network Architects 289 305 17 39 55 19.1% Actuaries 287 344 57 157 214 74.1% Data Entry Keyers 285 258-27 45 18 6.3% Mail Clerks and Mail Machine Operators, Except Postal Service 263 279 16 46 62 23.4% Administrative Services Managers 254 269 15 57 72 28.1% Loan Officers 253 267 14 59 73 28.8% Compliance Officers 245 300 55 27 82 33.1% Human Resources, Training, and Labor Relations Specialists, All Other 236 250 14 36 50 21.0% Chief Executives 231 170-61 54-7 - 3.0% Marketing Managers 227 241 13 60 73 32.0% Compensation, Benefits, and Job Analysis Specialists 223 227 4 34 38 17.1% Registered Nurses 221 244 24 36 60 26.9% Securities, Commodities, and Financial Services Sales Agents 218 205-12 55 42 19.3% Paralegals and Legal Assistants 211 286 78 27 105 49.4% Financial Specialists, All Other 198 210 12 38 50 25.0% 19