Insurance industry employment is expected to grow slightly in the next five years, partly driven by increased online sales, according to a report by Ibisworld.

“These sales are likely to be managed centrally from a head office in Sydney or Melbourne,” the research house says.

The change will occur despite industry consolidation, according to Ibisworld.

The three biggest groups – IAG, Suncorp and QBE – have expanded through mergers and acquisitions, and the trend is expected to continue.

Enterprise numbers are predicted to drop over the next five years, but “remaining businesses are expected to be larger, supporting continued employment growth”.

General insurers and reinsurers in Australia are forecast to employ 22,541 people in 2018/19, up from 21,860 in 2013/14 and 20,140 in 2004/05.

Consolidation activity and the strong market position of major players has cut the number of insurance businesses but “employment has risen, with the industry highly reliant on labour across most operations”, the report says.

“With the number of premiums on the rise, more staff have been required across the industry to administer policies and service clients.”

Insurance sector employment is expected to rebound slightly in the next few years. It grew 0.8% last financial year following a 3% fall in 2012/13. A rise of 1.2% is expected in 2015/16.