2015 CII Skills Survey: Insurance industry diversifies to meet skills shortage
- The UK skills gap is getting worse, with 20% more insurance companies reporting shortages than in 2013
- Four in five (81%) general insurance employers are now impacted by shortages
- Industry confidence in the UKs ability to compete globally is falling
- Insurance businesses are now looking outside the sector and growing their own to meet expansion targets
The skills shortage in UK general insurance has reached worrying levels, according to the latest annual Skills Survey from the Chartered Insurance Institute (CII).
The vast majority (81%) of employers now say they are struggling to get the expertise they need, which is a 20% increase on the 2013 figures. This may be a long-term side-effect of cutting staff and reducing training budgets during the recession, which has resulted in a smaller pipeline of talent coming through the industry.
Employers report that they are having particularly difficulty filling technical roles, where specialist knowledge and experience is required. Without the right expertise in place, some are worried about their company’s ability to deliver a quality service and remain competitive. Almost a quarter (24%) of those surveyed say that they will not be able to be as grow as much or be as innovative due to skills shortages and a further fifth (22%) worry that service levels will be impacted as a result.
This may be having a knock-on effect on confidence in the sector as a whole. Optimism remains relatively high, with over two thirds of employers believing the British insurance industry is well prepared,, however this has dropped from over three quarters two years ago. (77% vs 66%).
Despite this, the sector remains resilient and most businesses are optimistic about their own plans for growth over the coming year. Over half (55%) of employers intend to grow their headcount in 2016 and plan to use a range of methods to attract new and diverse talent. Some are looking to ‘grow their own’ through well-established routes like graduate schemes and apprenticeships and others are looking to recruit those who have experience outside the sector. We are now seeing a whole host of return-to-work programmes for parents, recently retired and ex-service personnel.
The cost of these schemes is having a financial impact on businesses as resources are diverted to recruit and train new staff. Over a third of those facing shortages are having to increase their training budgets as a result, at a cost to other business areas.
The apprenticeships levy, which is expected to be introduced in 2017 for large firms, could present employers with a challenge as to how to deploy training budgets effectively.
Daniel Pedley, Public Affairs Manager at the CII, comments: “This year’s survey reveals a dangerously large skills gap within insurance and yet it also shows what a thriving and resourceful industry we work in as employers rise to meet this challenge.
“It is great to see how businesses are adjusting to bridge the skills gap by recruiting not just young graduates and school-leavers, but those wishing to return to work who bring valuable life experience with them.
“Although there is no quick-fix to this problem, it is by encouraging diversity and developing the expertise within it that the sector will flourish.”
The survey was conducted among the CII membership and included insurers and brokers from across the UK. The 2015 Skills Survey can be viewed online at: www.cii.co.uk/skillssurvey
