Inside the insurer talent gap

The insurance industry is grappling with a persistent talent shortage.

While this challenge is not new, the underlying causes – and potential solutions – are evolving rapidly. From shifting candidate expectations to the rise of artificial intelligence (AI) and greater calls for inclusivity, the talent conversation is becoming more urgent and complex.

According to the 2025 Salary Guide and Sentiment Report, published in December 2024 by Idex Consulting, 52% of insurance companies do not believe they currently have the talent needed to achieve their business objectives.

This dynamic is creating an intense war for talent, with Idex further finding that 76% of employers in the insurance industry are planning to hire in the next 12 months.

Idex general insurance managing director Paul Davey said competition and desire for talent is being felt most keenly in the underwriting arena. He explained: “We’re seeing strong demand across both the insurer carrier market and the MGA space.”

Davey believes this “strong demand” has been driven by insurers’ positive performance off the back of the recent hard market, occurring at the same time as the MGA sector has been growing in importance – these headwinds have forged a “double-edged sword” where there is extremely strong demand for underwriters from two competing areas of the general insurance market.

This trend has been exacerbated further by the Covid-19 pandemic, which created a wave of resignations when a number of more experienced employees made the decision to retire early amid career insecurity.

“There’s a lot of experience that left the market over that period of time, which the carriers are looking to replace, so it’s causing them an issue,” Davey explained.

“But if you’re an individual and you’re an underwriter, then you’re in a really good place at the moment because lots of people are wanting your services and they are paying very well for it.”

‘Digital fluency’

One driver of this increased demand for underwriting talent is the rapidly changing technological environment UKGI finds itself in – RSA reward, talent and people change director Jennifer Francis told Insurance Times that the industry needs to be careful in balancing digital skills with human ones.

“We are already seeing insurance roles evolve significantly, shaped by AI, automation and shifting global risks,” she noted.

“While demand will grow for tech driven expertise like data science, cyber and risk forecasting, human skills like empathy, judgement, critical thinking and the ability to translate data into actionable insights will remain essential.

“It’s not just about digital fluency, but using it to create real value and solutions for customers.”

Ditching the ‘dry reputation’

One of the ways to help close the underwriting talent gap is to attract new talent to the profession – something Suzanne Scott, chief people and corporate responsibility officer at Axa UK and Ireland, said the industry needs to get better at.

“There is a significant lack of awareness regarding the diverse career paths available in insurance and we are working hard to change the perceptions of our brand and industry,” she explained.

“Insurance encompasses everything from technical to creative roles and offers huge opportunities to grow a rewarding career.”

Francis agreed, confirming that insurers needed to fight back against the “dry reputation” that has held the industry back from attracting fresh talent.

“We must rebrand insurance as an innovative, purpose driven industry, highlighting areas like insurtech, cyber, AI and environmental, social and governance (ESG) [focuses],” she argued.

“That means investing in talent pipelines, recruiting for skills over experience, reaching diverse candidates through modern channels and offering clear, growth focused careers.”

Scott added that it is also important to reach out to the next generation.

She said: “We have partnered with social mobility charities Future Frontiers and Career Ready to enhance opportunities for GCSE and Sixth Form students, while raising awareness of the career options available in the insurance industry.

“This not only helps us broaden our talent pipeline, but also supports students in securing placement opportunities and hands-on experience.”

Diverse hiring

Part of the answer may also lie in inclusion, opening the insurance industry up to a new wave of diverse individuals, while also improving the sector from an ethical standpoint.

Axa, for example, has been working with Women in Data, an organisation that aims to empower and support women pursuing a career in data and technology. Scott said this is to “ensure gender diversity in our data teams”. The insurer also launched a Black Professionals Network for its staff.

Davey noted that insurers need to do more with such initiatives, so that the sector can move beyond the personal networks that have led to so many people “falling into” insurance as a career because they know someone already working in the industry.

“You can see on a day-to-day basis that if you rely purely on your own network to bring people in, you’re going to have less diversity of thought and diversity of background – whether that’s ethnicity or socioeconomic background,” he said.

To combat this challenge, Idex works with its clients to identify hires that traditionally might not have considered the particular role being advertised.

“We look in areas of the market that maybe wouldn’t automatically apply to those jobs,” Davey explained.

“That means looking at a tier below the level of hire that we’re looking for and encouraging people to think about stepping up – that’s helped bring a more diverse audience to the job market and opportunities that are there.”

Storytelling

Whatever the solution to these talent-based challenges – and there is no single solution – Davey commented that the most important thing is that companies tell a story about what they can offer to their staff on a personal level, not just how successful they are as a business.

“Facts tell, stories sell,” he said. “Candidates aren’t interested in how long you’ve been established, how many people you’ve got, how many offices you’ve got, how much money you make – they want to know what’s in it for them.”

Francis added that this is particularly important at the more junior end of the job market.

“The younger generation values purpose, ESG, innovation and inclusion,” she confirmed.

“By offering tech enabled environments, flexibility to manage work-life choices, opportunities for growth and a strong sense of belonging, we can position insurance as a future focused, meaningful career choice.”

Winning the war for talent means more than just being visible – it means being relatable, relevant and ready to invest. And, as competition for talent intensifies, those that tell the best story may just have the best shot at winning.