A new report highlights insurance industry employees growing negativity toward AI job displacement, as sector employment dropped 21% YoY, and entry-level adjuster positions dropped 50% YoY.

Glassdoor’s Employee Confidence Index for its broader AI Report hit a record 10-year low in July, and a large percentage came from the insurance sector.

From July 2025 to July 2026, employee confidence in insurance dropped 7 percentage points, authors Chris Martin, senior economist with Glassdoors Economic Research team, and Indeed Hiring Lab economist Feliz Aidala noted.

The extremely negative sentiment toward AI is driven by fears of AI-based job replacement, the push to use AI tools, and AI degrading work or product quality.

From late 2023 to early 2024, insurance industry employee confidence dropped significantly (in line with a broader decline in employee confidence), but rebounded until May of 2026.

With the industry’s confidence is at an all-time low, claims adjusters were found to be the most critical of AI (98%) in Glassdoor reviews. This is telling since the industry’s confidence had been tracking higher than other industries historically.

Postings for insurance claims adjusters are down 55% from their post-pandemic peak, the report showed. The decline is much more significant than the 36% decline in the broader labor market.

Claims adjusters represented 18% of jobs lost even though they comprised only 2% of the industry.

Insurance carriers shed nearly 75,000 jobs YoY.

Demand for inexperienced workers has collapsed, with entry-level adjuster job postings down 50% since 2025, data showed.

Inexperienced claims adjusters often follow specific formulas that can be outsourced to agentic AI, the report authors noted.

Senior-level job postings remain about 80% above 2017 levels.

AI sentiment across all jobs/industries was 53% negative.

The authors indicate that while there could be other factors at play, insurance industry employees are putting the blame squarely on AI, a sentiment that might not be far of course given that Indeed’s GenAI Skill Transformation Index identified insurance roles as facing high levels of skill replacement, with 70% of skills identified as poised for hybrid transformation with AI leading and a human overseeing.