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Mid-Michigan Insurance Sector Powers State Economy

Saturday, June 1, 2019  
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Industry Estimates 40 Percent Loss of Workforce by 2028 as Insurance Professionals Begin to Retire

Mid-Michigan employs nearly 17,000 employees in the insurance sector, making a significant impact on the employment opportunities in state’s epicenter, but the economic impact the industry has on Michigan as a whole is even greater. The mid-Michigan insurance sector contributes more than $5.5 million dollars to Michigan’s economy and more than $1.1 million in labor income each year.

Lansing is known as the Insurance Capital of Michigan and is home to six of the nation’s top insurance companies including Farm Bureau Insurance of Michigan, Accident Fund Insurance, Jackson National, Michigan Millers, Delta Dental of Michigan and Auto-Owners Insurance.

These businesses, along with hundreds of additional agencies, independent agents and insurance workers at companies outside of the field, make up 20 percent of all insurance jobs in the state.

“We are proud to have such a strong insurance presence throughout our region,” said Tim Daman, LRCC president and CEO. “The work they do bolsters our local and state economy, while providing a wide range of jobs, including opportunities that many people don’t realize are even an option within the industry.”

Some of the high-demand jobs available in the region are accountants and auditors, computer and information systems managers, software developers, communications specialists and customer service representatives. These jobs can pay upwards of $90,000 annually.

Over the past several decades, the industry has grown at an incredible pace, but with the wave of retirement from the Baby Boomer generation, the industry is expected to lose 40 percent of their workforce by 2028.

“Talent attraction and retention is the top issue facing our members,” said Michelle Rahl, LRCC vice president of business development. “With such a large portion of the insurance workforce retiring over the next decade, attracting and retaining talent becomes even more complex. Not only do these businesses have to find skilled workers who are the right fit for their companies, they have to find a large quantity of skilled workers to close the future talent gap.”

The insurance sector makes up 8.3 percent of the region’s gross domestic product and has $2 billion of economic activity, which is 15.4 percent of the state’s overall insurance sector. Without the employees to fill the jobs left vacant by retirements, Michigan’s economy will take a huge hit.

“The talent gap is expanding more and more every day, and if we don’t address the problem now, all of the positive momentum we’ve been working so hard to make could slow down,” said Rahl. “We must continue to work together as a community to promote the Lansing brand in order to attract and retain young talent to the region, so we can continue to connect, grow and thrive for years to come.”

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