Insurance salaries now rising faster than rate of inflation

Insurance salaries rose faster than the rate of inflation during 2023 as the industry showed signs of “resilience and growth”.

That was according to job site Reed, which revealed in a statement today (31 January 2024) that there was a 4.7% rise in advertised salaries over the past 12 months.

This was higher than the 4% UK inflation figure measured by the Office for National Statistics (ONS) over the same period for its latest consumer price index, published on 17 January 2024.

It was also higher than the salary increases seen in the industry in 2022, with Reed measuring rises of 3.1% that year.

The firm said salaries were continuing to rise due to the “need for more specialist skillsets” as technology continues to evolve.

“We’re seeing a greater number of firms embracing technological changes – in particular the use of artificial intelligence (AI) and automation – which is significantly impacting the works of work for the current and next generation,” Leanne Appleton, insurance and financial services expert at Reed, said.

“This is also creating reduced demand for process roles, which can be easily automated and instead heightening the need for more specialist skillsets, including professionals who can help to drive strategies and business plans.”

Regions

Reed analysed 6m advertised job salaries posted on its recruitment website over the last three years to create the comparison as part of its suite of annual salary guides.

It also gave insights into the regions that were most competitive within the insurance industry.

Areas such as Wales (7.5%) and the south west (6.6%) saw the biggest increase in wages, with Northern Ireland being the only region to experience a salary decrease in the sector (-2.1%).

Appleton predicted that 2024 will see firms focus on agile working to attract talent from further afield, including outside the UK.

“To attract and secure the best people, employers are urged to act quickly and decisively, while listening to the needs of their existing staff to understand what they value most,” she added.

“Experienced professionals have nothing to fear when exploring their options but are encouraged to figure out what matters to them when looking to move on – whether it’s flexible working, generous benefits, training opportunities or regular salary reviews.”