Salary Survey: Average pay by job role revealed

A buoyant jobs market in the insurance industry over the past year has seen salaries rise and new job placements increase as insurers, brokers and managing general agencies (MGAs) look to position themselves for growth and secure the best candidates.

IDEX Consulting managing director David Carr says this has resulted in a record year for new placements in 2018 – a trend that is set to continue this year.

“Last year was a record year for IDEX, a direct reflection of the increased activity within the UK insurance market,” he says. “And with 2019 predicted to continue this upward trend, we expect to see significant increases in recruitment activity, driven by a buoyant market and the introduction of new start-ups across the UK market.

“Over the last 12 months, growth within the market has been positive, but the continuing war for talent is set to dominate in 2019. Last year saw a 57.5% increase in the number of jobs registered, while the supply of candidates has diminished by 45.5% against the previous year.”

This increasing demand for talent has forced companies to change the way they think about their working arrangements.

“Companies are adapting their workplace policies to provide more flexibility and balance, as well as ensuring competitive packages to keep their talent engaged,” Carr says. 

“This has driven the growth of more advanced ‘retained’ recruitment tools across all aspects of the market; with the sole purpose of ensuring businesses secure the right individual ahead of the competition.”

Salary not the only factor

IDEX Consulting chief executive Matt Green says that the most successful companies are combining this flexibility with a collaborative working environment to attract the best candidates and keep them as part of a loyal workforce.

“Our research has suggested that although salary is still a key factor in choosing a new employer, work/life balance and working with colleagues who inspire them are now vitally important,” he says. 

“Leading employers are adapting their packages to provide more flexible working practices to attract the best individuals – with the increase in productivity beginning to become apparent as employees are more motivated, engaged and less likely to leave.”

Private equity fuels growth

Carr says private equity will continue to have a big impact on the future shape of the market, and that will help fuel the growth already seen in niche markets and specialty lines.

“Private equity continued to have a significant impact on the market in 2018, and this looks set to continue long into 2019 as relatively flat interest rates are creating poor returns from the usual markets, making the insurance sector an attractive prospect for foreign investors looking to gain a slice of the pie,” Carr says. 

“This led to significant growth for both MGAs and brokers looking to capitalise on the increased demand for speciality lines, with specific demand for warranty and indemnity leading the charge.

“Insurers have in turn adapted, with many creating or growing their distribution across niche vertical markets.”

The big question mark that still hangs over the insurance industry, however, is Brexit. But Green says this uncertainty has not had a negative impact on the recruitment market within the industry, with most insurance businesses still expecting to grow and expand during 2019.

“Despite uncertainty about Brexit, 95% of employers are expecting business activity to increase and three-quarters are expecting to hire during 2019,” he says.

“Talent attraction remains the key challenge for business leaders, with 92% experiencing skills shortages over the last 12 months.” 

This is highlighted by the fact the UK employment market saw 56% fewer active candidates in 2018 versus 2017, while the number of businesses recruiting increased by more than 25% in the same time.

“This increased competition will put further pressure on the war for talent, with the trend of increasing salaries to continue over 2019, driven by the limited availability of, and strong competition for, experienced talent across all market sectors.”