Grand Rapids Emerges as Growing Hub for Insurance Industry with Strong Job Growth
Grand Rapids is experiencing significant growth as a hub for the insurance industry, with a 7% increase in insurance jobs since 2015 and a 23% rise in insurance-related business locations. The region's insurance sector employs about 11,700 workers as of 2024, with average earnings near $97,700, surpassing the average regional wage of $22 an hour, indicating the availability of skilled, well-paying jobs.
Insurance employment spans agencies, direct insurance, life, health, and medical insurance, and other related activities, reflecting broad sector diversity. Kent County, part of the metro area, has seen a 25% increase in licensed insurance agencies from 2019 to 2024, while licensed agents grew by 3% in the same period. Prominent employers driving this growth include Farmers Insurance Group, with 3,500 employees, and Priority Health, with 1,200 staff in the region. Downtown Grand Rapids has become a focal point, attracting major insurance companies like Acrisure LLC and OVD Insurance, which have relocated or expanded their headquarters to capitalize on talent and professional ecosystem advantages.
Acrisure, ranked globally as the seventh-largest insurance brokerage, exemplifies rapid growth, scaling from $38 million to $4.6 billion in revenue within 12 years and developing AI-driven sales technologies. Its downtown workforce has expanded, necessitating additional office space. OVD Insurance's downtown move aligns with ambitions to increase workforce size and enhance brand visibility, supported by a Michigan Business Development Program grant. Economic developers highlight the strategic value of a vibrant downtown environment that aligns with client and talent preferences, likening broker relocations to trends in professional service industries.
The Right Place Inc., the regional economic development organization, projects continued acceleration in insurance industry growth through 2030, planning targeted support in its economic strategies. Overall, Grand Rapids demonstrates growing significance as an insurance industry center, driven by employment growth, high wages, company expansions, strategic relocations, and supportive economic development initiatives.