As we move further into 2025, the sector’s job market continues to be impacted by a mix of market forces, and, most crucially, skill shortages.
Current trends in the UK insurance sector
The insurance market has seen notable changes over the past year, particularly in terms of salary expectations and talent availability. Salary levels have risen significantly, outpacing expectations as companies compete to attract and retain skilled professionals.
This is largely driven by a limited supply of professionals, especially for specialised roles, resulting in increased compensation packages that include competitive salaries, substantial bonuses, and enhanced benefits.
Many organisations are looking for people that not only meets the technical requirements but also aligns with their internal culture and brand value.
The sector also remains highly influenced by mergers and acquisitions, with ongoing consolidation expected to continue into 2025. These structural changes create unique opportunities for career progression, particularly in executive and senior management opportunities as organisations adjust to new business landscapes.
Demand remains steady across areas such as underwriting, broking and claims management with an increasing interest in senior-level professionals in these areas.
Regional demand and job opportunities
London, as the UK’s largest insurance hub, maintains the highest demand for insurance professionals. However, regional cities such as Bristol, Birmingham, Manchester, and Glasgow are emerging as alternative centres, aiming to establish their own insurance hubs.
These regional markets offer promising opportunities, driven by a mix of competitive salaries, an expanding scope of roles, and the rising preference for hybrid working arrangements.
The trend towards flexible work is here to stay, with insurance professionals showing a strong preference for working from home part of the week, a practice that is seen as key to maintaining a healthy work-life balance.
Looking ahead into 2025, the outlook for job opportunities remains positive, particularly in specialist lines. Trade credit, surety, political risks and political violence insurance have seen steady growth, with more businesses looking to recruit on both the underwriting and broking sides.
In addition, commercial insurance roles (property and liability) are anticipated to grow as newly-trained professionals enter the workforce.
Key hiring challenges and strategies for 2025
One of the biggest challenges for employers in the insurance sector is the scarcity of highly-qualified talent, particularly those who are actively seeking new opportunities.
This talent shortage requires organisations to adopt more proactive recruitment methods, often through the assistance of specialised recruitment companies skilled in headhunting passive candidates.
Additionally, the rising salary expectations have made it increasingly difficult for companies to stay competitive without substantial compensation packages, especially in regions outside London where experienced professionals can command significant premiums.
As companies strive to attract the best talent, they are not only competing on salary but also on brand reputation, company culture, and work-life balance offerings. Jobseekers are looking for roles that provide both professional development and a positive workplace culture.
With hybrid working now an industry standard, employers offering flexible working arrangements are more likely to attract the best talent. This trend is expected to continue as insurance professionals place even higher value on flexibility, and few are interested in returning to full-time, in-office roles.
Technological advancements and skills demand
The industry is on the cusp of a technological transformation, with artificial intelligence (AI) and other digital tools poised to redefine many roles. AI is expected to play an increasingly important role in underwriting and risk assessment, while other technologies are enhancing claims processing and risk placement.
These advancements are driving demand for a new set of skills, particularly in data analytics, AI, and digital transformation expertise.
Insurers are also adopting more digital-first approaches, including electronic risk placement and automated claims handling. This shift towards digital processes is creating new roles focused on technology, data security, and digital customer service.
As these skills become crucial in the insurance space, companies that invest in training and upskilling their workforce in these areas will be better positioned to thrive in a tech-driven future.
Preparing for 2025: employer strategies for success
In light of these shifts, employers in the insurance sector will need to refine their approach to attract and retain the best talent on the market in 2025.
With insurance professionals placing high value on company reputation and brand, employers must work to build a strong brand image that resonates with those looking for a new role in the sector.
This involves showcasing a positive workplace culture, a commitment to career development, and openness to diversity and inclusion. A strong employer brand not only attracts quality applicants but also enhances loyalty among current employees.
Given the significant rise in salary expectations, companies should conduct regular market reviews to ensure they remain competitive. However, salary is not the only factor; comprehensive benefits packages, performance-based bonuses, and clear career progression pathways are equally important.
With the rise of AI and other technological advancements, insurers will need to attract talent with digital expertise. Employers should focus on upskilling their workforce in areas like data analysis, machine learning, and cybersecurity, helping employees adapt to new tools and digital processes.
It’s evident to see that today’s jobseekers are looking beyond salary; they prioritise work-life balance, flexibility, and a supportive workplace culture. Employers should consider creating clear paths for career growth, offering professional development opportunities, and promoting a balanced approach to work.
The path forward
The insurance industry is evolving, and 2025 promises new opportunities for both companies and jobseekers willing to adapt to change. With growing demand across regional markets, increased reliance on technology, and heightened expectations from employees, insurers are challenged to rethink their approach to talent acquisition and retention.
Organisations that can adapt to these trends by offering a compelling value proposition, embracing technology, and drive forward a culture of flexibility and development will be well-positioned to succeed.
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