Insurance firms not realising benefits of apprenticeship schemes

Companies across the insurance industry are struggling to realise the benefits of apprenticeship schemes, according to specialist professional services and technology firm Davies.

The firm’s survey, which was published on 14 January 2025, showed that 11% of insurance businesses do not know how to establish an apprenticeship scheme, while 19% do not see the value in running a scheme.

Meanwhile, 15% of respondents said they do not know how to take advantage of the Apprenticeship Levy, which provides government funding to pay for apprenticeship training costs.

Craig Potter, professional education senior partner at Davies, said: “It’s concerning that over a third of firms are missing out on these benefits, either due to a lack of understanding of how to set up a scheme or misconceptions about their value.

”The lack of understanding around the Apprenticeship Levy is a particular concern, especially with its impending transition to a growth and skills levy under a Labour government.

”The fact that so many firms are simply unaware of how to establish a scheme demonstrates that more support and education are needed to help organisations tap into this important talent pipeline.”

Other findings

Some 504 full-time employees from UK financial services firms were asked about their organisation’s approach to apprenticeships. 

The survey also found that 85% of respondents believe apprenticeship schemes help build loyalty between participants and their organisation, while 78% reported that participants in their apprenticeship programmes often progress to long-term careers within their company.

Some 57% also confirmed their organisation has an apprenticeship scheme in place.

Potter said: ”My biggest takeaway from this research is that it demonstrates just how valuable apprenticeship schemes can be for financial services organisations.

”With a majority of firms now offering permanent roles to their scheme graduates and a similar number of firms reporting that they are cutting recruitment costs as a result, it’s clear that they provide an excellent pathway for firms looking to secure long-term talent.”