The 2024 UK Hays Salary and Recruiting Trends Guide surveyed employers and professionals across the insurance sector. According to the research, over two thirds (68%) of insurance employers plan on hiring staff over the next year, but organisations expect to grapple with several challenges in the next 12 months.
The skills gap persists
In today’s talent-short market, the skills gap continues to cause disruption for employers within the insurance sector, as 93% experienced skills shortages over the last year. Other key challenges organisations predict to face are the economic environment (66%), hiring the right talent (60%) and retaining staff (67%).
Our research also reveals the ongoing importance of soft skills for insurance professionals to lead a fulfilling career. The most in-demand soft skills that insurance employers require are:
- Communication and interpersonal skills (72%)
- An ability to learn and upskill (59%)
- Ability to adopt change (58%)
- Problem-solving (55%)
- Coordinating well with others (54%)
Salaries are on the up
The competition for talent has arguably led to bigger pay increases than expected. As well as this, the cost-of-living crisis has caused an increased concern amongst professionals about whether their salary will cover the extra costs. Over the last year, 88% of employers increased their employees’ pay, a noticeable increase from the year before (78%). Two thirds (67%) of employers say these rises have been a direct consequence of the rising cost of living.
Across the insurance sector, salaries have increased by an average of 3.9% in the past year. More specifically, professionals working in projects, change and operations (5.3%), claims (5.2%) and actuarial (4.2%) have seen salary rises above this average, mostly due to employers competing for in-demand niche expertise, skillsets and experience.
Salary increases are set to continue, as the majority of insurance employers (85%) plan to raise staff salaries in the coming year. However, as it stands, nearly a third (32%) of insurance professionals are dissatisfied with their current salary. In terms of employee movement, 41% of insurance professionals changed jobs in the last year and a further 36% considered doing so. The main reason professionals left their last job was because their salary was too low (34%), followed by a lack of fulfilment from the roles (32%).
Professionals motivated by a positive team culture
Aside from job security (71%), an engaging and supportive team culture (70%) was rated by insurance professionals as the factor that makes an organisation most appealing, followed by tailored flexible working practices (60%).
Most (80%) insurance employers offer hybrid working to staff and this continues to be an important draw for insurance professionals, as nearly two thirds (63%) would not consider accepting a job in the future if it did not offer hybrid working. When it comes to productivity, 31% of insurance professionals say they are most productive in the workplace, compared to 63% who believe they work best from home.
With half (50%) of professionals looking to change jobs in the year ahead, employers must tap into what people working in insurance value most, in order to attract and retain the top talent.
| Earning Potential in Insurance |
|||
| Business Function | Entry Level* | Senior roles* | Partner/Head* |
| Underwriting | £25,000 | £120,000 | £250,000 |
| Claims | £25,000 | £95,000 | £150,000 |
| Broking | £25,000 | £120,000 | £250,000 |
| Risk and Compliance | £30,000 | £85,000 | £125,000 |
| Projects, Change and Operations | £30,000 | £110,000 | £175,000 |
| Actuarial | £37,500 | £150,000 | £208,000 |
*Salaries based on jobs in London. Source Hays’ UK Salary & Recruiting Trends 2024 Guide.
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