Matthew Waters

31st January 2023

The insurance and financial services industry protects the world’s people, homes and businesses and in the UK currently employs in excess of 321,000 skilled individuals. During 2022 the sector saw an unprecedented number of vacancy postings and in niche areas of wage inflation.

The trading environment within the insurance sector remained highly competitive. Many technically skilled employees opted for early retirement during or post the pandemic and this exacerbated the already existing talent shortage. In a technical market where, for many years the sector has taught much through office based osmosis, hybrid and flexible working meant teams weren’t attending the offices five days a week. When they did, they were often not sitting together. With management focused on either winning or retaining business or improving operational efficiency firms focused on making experienced technical hires, which brought into even sharper focus the decreasing talent pool.

Data suggests that for 2023 hiring volumes will likely be lower than 2022 and rates of pay growth are starting to slow. Client sentiment also suggests a subtle shift with remote working perceived as being a “right” to now becoming a “frustration”. Whilst we are unlikely to see the large pay increases of 2022, the technical and specialist niche roles will remain hard to fill. The urgent need is for the industry to attract, retain and develop at entry, junior and mid-levels.

Read the full report, here.