The Banking and Insurance Committee's Insurance Subcommittee convened on May 28, 2025, to address pressing workforce challenges within South Carolina's insurance sector. The meeting highlighted significant concerns regarding the state's growing population and its impact on staffing and resources.

A key speaker noted that South Carolina's population has surged from 4 million to 5.3 million, marking a 25% increase. However, this growth has not been matched by an increase in personnel or budget, leading to concerns about the ability to manage the rising demand for services. The speaker emphasized that despite having one of the lowest initial wait times in the country, the workforce has remained under-resourced.

The composition of the workforce was also discussed, revealing that 87% of employees are female and 51% are African American, with many coming from single-parent households. The speaker expressed a commitment to supporting these employees, particularly in light of previous salary increases that have not kept pace with inflation. Although salaries were raised from $22,000 to $33,000 four years ago, inflation has effectively reduced their buying power back to the original level.

The high turnover rate of 33% annually was another critical point of discussion. With 500 out of 1,500 employees leaving each year, the speaker highlighted the challenges of training new staff in complex areas such as tax law, insurance law, and cybersecurity. The rapid turnover not only strains resources but also affects the quality of service provided to the public.

In conclusion, the meeting underscored the urgent need for increased support and resources for the insurance workforce in South Carolina. As the population continues to grow, addressing these workforce challenges will be essential to maintaining effective service delivery in the banking and insurance sectors. The committee plans to explore potential solutions to enhance staffing and budget allocations in future discussions.