Toronto’s Insurance Industry:
A Detailed Look at Key Occupations and Labour Market Insights
The insurance industry in Toronto is not just a market of policies and premiums but a landscape of diverse and skilled occupations. In this section, we take a closer look at these roles, understanding how they fit into the broader labour market.
In this report, we have specifically chosen to focus on five key occupations within Toronto’s insurance industry for a more detailed discussion. Each of these occupations plays a pivotal role in the functioning and success of the insurance industry, contributing unique skills and insights that drive the industry forward. These roles include:
Agents and Brokers: Both Agents and Brokers act as intermediaries between insurance buyers and the insurance market and can offer insurance quotes on different policies. Both are licensed to sell insurance products while following provincial and federal regulations.
An Insurance Agent represents one or more insurance companies and sells their policies for a commission. Their job is to represent the insurance company in the transaction while also helping customers find the right coverage. There are two types of insurance Agents-Captive Agents, who work for a single insurance company and Independent Agents, who work for several different insurance companies and can offer a wider range of insurance products.
Brokers, meanwhile, represent the consumer and offer them expert advice. They have no obligation to sell policies from one insurance company or another, meaning they can shop around to find the best policies at the best prices according to their clients’ needs. Since brokers don’t represent insurance companies, they can’t bind coverage on behalf of an insurer when purchasing insurance. They must hand over the account to an insurer or insurance agent to complete the transaction.
Adjusters and Claims Examiners: These are the industry’s detail detectives, investigating each claim with a keen eye. They serve as the critical link between policyholders and the insurance company, meticulously reviewing claims to ensure just settlements.
Underwriters: Underwriters are the risk evaluators. Their decisions dictate the economic viability of insurance policies, safeguarding the insurer from potential losses while providing necessary coverage to clients.
Mathematicians, Statisticians, and Actuaries: The trio of Mathematicians, Statisticians, and Actuaries are the masterminds of prediction and probability in the insurance world. They apply mathematical and statistical models to forecast future claims and pricing risks, thereby shaping the strategic framework of policy offerings.
Data Scientists: Data Scientists are the modern alchemists of the insurance industry, turning raw data into gold. By harnessing advanced analytics and machine learning, they extract insights that inform product development, customer segmentation, and risk assessment strategies.
Exploring Toronto CMA’s Role in Ontario’s Insurance Occupations: Census 2021
Figure 10 offers a snapshot from the 2021 Census, highlighting how Toronto’s metropolitan area plays a crucial role in staffing the insurance industry across key occupational categories. This analysis reflects the concentration of talent in the region and further highlights Toronto’s pivotal position in insurance in Ontario’s broader economic landscape.
The distribution is nearly even for Adjusters and Claims Examiners as well as Agents and Brokers, with 51% in Toronto and 49% in the rest of Ontario. This suggests that while Toronto is important, there is a widespread need for sales and client service roles across both urban and rural settings, accommodating consumer needs directly. The share of Underwriters (61%) and Mathematicians, Statisticians and Actuaries (60%) supports Toronto’s status as a strategic decision-making center for insurance policies and risk assessment, financial modeling, and insurance product development. The highest concentration of Data Scientist labour force (68%) within Toronto suggests a strong emphasis on data-driven decision-making and innovation in insurance products and services, leveraging advanced analytics and big data technologies that are more prevalent in urban centers.
Given the high concentration of specialized roles like Actuaries and Data Analysts in Toronto, there’s potential to develop Toronto as an innovation hub for the insurance industry. Establishing specialized training institutes or innovation labs that collaborate with local universities and tech companies could drive forward-thinking practices and technology adoption within the sector. There is also potential for the adoption of remote and hybrid work strategies, which can tap into this local talent pool without necessitating physical relocation.
Exploring Gender Composition in Toronto’s Insurance Jobs: 2021 Census Insights
Figure 11 below highlights intriguing patterns that suggest varying degrees of gender representation across different roles within the insurance industry.
In roles such as Adjusters and Claims Examiners and Underwriters, there is a noticeable majority of female employees, with around 62% and 65% respectively. These roles involve handling claims, assessing damages, negotiating settlements, and maintaining detailed records—tasks that align well with skills that women are traditionally more likely to excel. For Underwriters, the need for meticulous attention to detail and risk assessment capabilities might also align more with educational paths traditionally pursued by women in fields like Business and Finance.
Conversely, the Data Scientist role demonstrates a significant male majority, with approximately 69% male employees. This aligns with broader trends seen across STEM fields, where technical roles that require heavy quantitative skills and programming are predominantly male. This could reflect deeper systemic issues such as gender biases in STEM education and career paths that deter women from entering and remaining in these fields.
Mathematicians, Statisticians, and Actuaries, and Agents and Brokers show a more balanced gender representation, though still slightly skewed towards males in the former and females in the latter. The balance in these roles suggests that there might be less of a perceived barrier for entry or continuation for either gender, possibly due to the nature of the work which blends technical skills with client interaction.
The discrepancy in gender distribution between roles like Mathematicians, Statisticians, and Actuaries, which exhibit a more balanced gender representation, and Data scientists, which remain male-dominated, can indeed seem confusing at first. However, several factors contribute to why Data Science might not see the same level of gender parity. Firstly, Data Science often requires a deep understanding of complex algorithms, machine learning techniques, and programming skills. Historically, computer science and related fields have had lower female participation rates, which might carry over into Data Science.
While the foundational skills in Mathematics and Statistics are shared with the fields of Mathematicians, Statisticians, and Actuaries, the additional technical requirements in Programming and Computer Science may be a contributing factor. Data Science is a rapidly evolving field where the required skill sets and technologies can change quickly. This fast pace can be a barrier for those who take career breaks, which are more common among women due to family responsibilities. Keeping up with the latest technologies, tools, and methods can be challenging, impacting long-term career progression for women.
Exploring Age Composition in Toronto’s Insurance Jobs: 2021 Census Insights
Using Census 2021 data, Figure 12 below provides insights on the age demographics within different occupational roles in insurance industry in Toronto CMA.
Figure 12 shows that occupations like Data Scientists (61%) and Mathematicians, Statisticians and Actuaries (51%) have a significantly younger age profile (20-34 years) compared to other roles. This suggests a relatively recent establishment and growth of this role within the insurance industry, driven by the increasing reliance on big data and analytics. The small percentages of older workers also suggest it’s a recent and rapidly evolving field.
Conversely, traditional roles such as Agents and Brokers (43%), Underwriters (48%), Adjusters and Claims Examiners (47%) demonstrate a heavier concentration of the mid-career demographic (35-54years) age range, signaling an impending generational turnover or it could be that these jobs are not as attractive to young people.
The chart shows that occupations like Data Scientists (61%) and Mathematicians, Statisticians and Actuaries (50%) have a significantly younger age profile (20-34 years) compared to other roles. This suggests a relatively recent establishment and growth of this role within the insurance sector, driven by the increasing reliance on big data and analytics.
Conversely, traditional roles such as Agents and Brokers (44%), Underwriters (48%), Adjusters and Claims Examiners (48%) demonstrate a heavier concentration of the mid-career demographic (35-54years) age range, signaling an impending generational turnover.
The age distribution suggests a need for targeted recruitment strategies to attract younger talents into aging roles like underwriting and claims examination, while also creating pathways for advancement and retention for mid-career professionals in Data Science and Actuarial roles.
Educational Background of Insurance Professionals in Toronto CMA, 2021 Census
The 2021 Census data reveal the diverse educational backgrounds of insurance professionals in Toronto CMA, highlighting the range of qualifications that contribute to the industry’s dynamics.
Using Figure 13, the following can be summarized about the educational backgrounds of Insurance industry professionals in Toronto, CMA:
Higher Education Prevalence: There’s a clear trend towards higher education in more specialized roles like Data Scientists and Actuaries, where a significant percentage hold Above Bachelor’s degree at 58% and 35% respectively. This reflects the technical and analytical nature of these roles which require advanced mathematical and statistical skills.
Bachelor’s degree as a Standard: For Adjusters, Claims Examiners, and Underwriters, the most common qualification is a Bachelor’s Degree. This indicates that even roles traditionally viewed as less technical now require substantial formal education, likely due to the increasing complexity of the regulatory and business environments in which they operate.
Role of College Diploma: These qualifications are significant for Adjusters and Underwriters, highlighting the industry’s reliance on specific vocational skills that can be acquired through less than a four-year college degree. This pathway provides an important entry point into the industry for those without a traditional university education.
Low Representation of High School Graduate: Across all roles, except for Adjusters and Underwriters, there is minimal representation of professionals with only High School Graduate, suggesting that high school education alone is insufficient for most professional roles within the insurance industry in Toronto.
Census data reflects that Toronto’s insurance industry professionals’ points to a highly educated workforce with a strong emphasis on higher education for technical and analytical roles. The emphasis on higher education signals towards a competitive job market where advanced qualifications can be a key differentiator. Educational institutions and industry bodies may need to continue aligning their programs with the specific needs of the insurance industry, including the integration of new technologies and methodologies, to ensure that graduates are job ready.