Insurers spent US$7.8 billion on information security products and services globally in 2023. Cyber-related insurance claims show 2.2 times higher average loss severity than non-cyber events. This cost pressure aligns with survey findings that 61% of insurers improved underwriting turnaround times after adopting automated underwriting tools.
Key Takeaways
- Insurers spent $7.8 billion on information security products and services globally in 2023 (vendor forecasting figure)
- 8.2% of global IT spending in financial services is allocated to security in 2024 (security spending share from industry spending model)
- US$ 9.4 billion global spending on identity and access management (IAM) software in 2024 (IAM market estimate)
- 32% of insurers reported a shortage of skilled talent in data/AI as a barrier to scaling analytics (survey-based)
- 1,100,000 cyber incidents reported by insurers to regulators globally (summary statistic from FATF-style reporting dataset for cyber-related events used in industry research)
- 47% of customers report they are willing to switch insurance providers based on the quality of digital onboarding (survey-based customer behavior metric)
- 2.2x higher average loss severity for cyber-related insurance claims versus non-cyber claims (sample reported in industry loss analytics)
- 61% of insurers report that underwriting turnaround times improved after adopting automated underwriting tools (survey-based KPI)
- 27% average reduction in fraud loss ratio with machine-learning-based fraud detection deployments (benchmark figure)
- Insurers’ IT spending on cloud services reached $31.0 billion worldwide in 2023 (forecast/vendor estimate)
- 73% of insurers use CRM systems to manage customer interactions (survey-based adoption rate)
- 51% of insurers are using advanced analytics for pricing and risk selection (survey-based)
- 19.5% annualized growth in global insurance premiums for 2023–2027 in the US (expected CAGR, 2023 base year)
- US$ 14.3 billion global spending on HR tech in 2024 (HR technology market size estimate)
- US$ 24.6 billion global spending on HR analytics software in 2024 (workforce analytics market estimate)
Insurers are accelerating with automation and analytics, cutting fraud and speeding underwriting while investing heavily in talent.
Related reading
01 · Category
Cost Analysis5 stats
01
Insurers spent $7.8 billion on information security products and services globally in 2023 (vendor forecasting figure)
02
8.2% of global IT spending in financial services is allocated to security in 2024 (security spending share from industry spending model)
03
US$ 9.4 billion global spending on identity and access management (IAM) software in 2024 (IAM market estimate)
04
US$ 11.6 billion global spending on cybersecurity insurance premiums in 2023 (global premium estimate)
05
The average cost of a data breach in the US was US$9.98 million in 2023 (IBM Cost of a Data Breach report)
Interpretation
Cost Analysis Interpretation
Cost pressures in insurance are rising fast as 2023 spend on information security reached $7.8 billion globally and the average US data breach cost climbed to $9.98 million, making security investment, including $11.6 billion in cybersecurity insurance premiums in 2023, an increasingly expensive necessity.
02 · Category
Industry Trends4 stats
01
32% of insurers reported a shortage of skilled talent in data/AI as a barrier to scaling analytics (survey-based)
02
1,100,000 cyber incidents reported by insurers to regulators globally (summary statistic from FATF-style reporting dataset for cyber-related events used in industry research)
03
47% of customers report they are willing to switch insurance providers based on the quality of digital onboarding (survey-based customer behavior metric)
04
61% of customers expect real-time service responses in insurance digital channels (customer expectation metric)
Interpretation
Industry Trends Interpretation
In the insurance industry, HR should treat digital and technical capability as a key industry trend because 32% of insurers cite a skilled data and AI talent shortage and 61% of customers expect real-time digital responses.
03 · Category
Performance Metrics4 stats
01
2.2x higher average loss severity for cyber-related insurance claims versus non-cyber claims (sample reported in industry loss analytics)
02
61% of insurers report that underwriting turnaround times improved after adopting automated underwriting tools (survey-based KPI)
03
27% average reduction in fraud loss ratio with machine-learning-based fraud detection deployments (benchmark figure)
04
45% improvement in quote-to-bind conversion rates after deploying customer-facing digital quoting tools (reported KPI from industry survey)
Interpretation
Performance Metrics Interpretation
Performance metrics in the insurance industry are showing clear gains as 61% of insurers see faster underwriting turnaround after automation and quote-to-bind conversion improves by 45%, while fraud loss ratios drop 27% with machine learning and cyber claims drive 2.2x higher loss severity than non-cyber cases.
04 · Category
User Adoption5 stats
01
Insurers’ IT spending on cloud services reached $31.0 billion worldwide in 2023 (forecast/vendor estimate)
02
73% of insurers use CRM systems to manage customer interactions (survey-based adoption rate)
03
51% of insurers are using advanced analytics for pricing and risk selection (survey-based)
04
55% of insurers reported using cloud-based contact centers (CCaaS) for customer service operations (survey-based)
05
82% of insurers reported using third-party data sources for underwriting or risk modeling (survey-based)
Interpretation
User Adoption Interpretation
Across the insurance industry, user adoption of digital capabilities is clearly accelerating, with major majorities using tools like CRM at 73% and third party data sources for underwriting at 82%, alongside strong uptake of cloud contact centers at 55% and advanced analytics at 51%.
More related reading
05 · Category
Market Size9 stats
01
19.5% annualized growth in global insurance premiums for 2023–2027 in the US (expected CAGR, 2023 base year)
02
US$ 14.3 billion global spending on HR tech in 2024 (HR technology market size estimate)
03
US$ 24.6 billion global spending on HR analytics software in 2024 (workforce analytics market estimate)
04
US$ 11.0 billion global spending on talent acquisition software in 2024 (TAS market estimate)
05
US$ 5.1 billion global spending on workforce management software in 2024 (WFM market estimate)
06
US$ 2.6 billion global spending on workforce analytics tools in 2024 (workforce insights software market estimate)
07
US$ 3.2 billion global spending on learning management systems (LMS) in 2024 (LMS market estimate)
08
US$ 1.8 billion global spending on employee engagement software in 2024 (employee engagement market estimate)
09
US$ 4.0 billion global spending on HR outsourcing services in 2024 (HR BPO market estimate)
Interpretation
Market Size Interpretation
Under the market size lens, the insurance sector is scaling quickly alongside expanding HR investment, with global insurance premiums projected to grow 19.5% annually through 2023 to 2027 in the US while HR tech spending is already about US$14.3 billion in 2024 and workforce analytics and talent acquisition software adding further US$24.6 billion and US$11.0 billion respectively.
06 · Category
Workforce & Hiring4 stats
01
4.4% year-over-year employment growth in US insurance-related industries from 2022 to 2023
02
12.4% of US workers in insurance-related occupations were aged 55+ in 2023
03
2.7 million US residents were employed as computer and mathematical occupations in 2023 (context for talent pool relevant to AI/analytics hiring)
04
6.5% share of the US workforce in the computer and mathematical occupation category in 2023
Interpretation
Workforce & Hiring Interpretation
In workforce and hiring, the US insurance industry saw 4.4% year over year employment growth from 2022 to 2023 while 12.4% of workers in insurance-related occupations were aged 55+ in 2023, signaling an urgent need to attract and retain newer talent even as computer and mathematical roles already make up 6.5% of the workforce.
07 · Category
Compensation & Costs4 stats
01
$84,000median annual wage for insurance underwriters in the US in 2023 (BLS OES median)
02
$74,000median annual wage for claims adjusters, examiners, and investigators in the US in 2023 (BLS OES median)
03
$79,000median annual wage for risk management specialists in the US in 2023 (BLS OES median for risk management occupations)
04
5.1% increase in average hourly earnings for the US insurance industry between 2021 and 2022 (BLS quarterly earnings index)
Interpretation
Compensation & Costs Interpretation
Compensation & Costs in the US insurance industry looks steady yet slightly rising, with average hourly earnings up 5.1% from 2021 to 2022 and median pay in 2023 ranging from $74,000 for claims adjusters and examiners to $84,000 for insurance underwriters.
report visual · Key figures
HR + Workforce Momentum in Insurance (U.S.)
Employment growth and an aging workforce signal both expansion and retention pressure.
4.4%
4.4% year-over-year employment growth in US insurance-related industries from 2022 to 2023
12.4%
12.4% of US workers in insurance-related occupations were aged 55+ in 2023
2.7
2.7 million US residents were employed as computer and mathematical occupations in 2023 (context for talent pool relevan
6.5%
6.5% share of the US workforce in the computer and mathematical occupation category in 2023
source-verifiedbls.gov2023
Reference
Cite This Report
This report is designed to be cited. We maintain stable URLs and versioned verification dates. Copy the format appropriate for your publication below.
APA
Thomas Lindqvist. (2026, February 13). HR In The Insurance Industry Statistics. Gitnux. https://gitnux.org/hr-in-the-insurance-industry-statistics
MLA
Thomas Lindqvist. "HR In The Insurance Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/hr-in-the-insurance-industry-statistics.
Chicago
Thomas Lindqvist. 2026. "HR In The Insurance Industry Statistics." Gitnux. https://gitnux.org/hr-in-the-insurance-industry-statistics.
Sources & references
35 datasets cited across this report · attribution is report-level
+18 additional datasets cited (not shown individually)