MPs voice concern over worsening UK skills gap
The UK skills gap is getting worse, with 20% more insurance companies reporting shortages than in 2013, according to the latest annual Skills Survey from the Chartered Insurance Institute.
The study found that four in five general insurance employers are now being impacted by shortages, with industry confidence in the UK’s ability to compete globally falling.
According to the findings, insurance businesses are looking for new ways to source talent, including ‘growing their own’ to meet expansion targets.
Employers identified graduate schemes and apprenticeships as ways to address the issue, while others said they were looking to recruit people with experience outside the sector.
Responding to the news Conservative MP and chair of the APPG on Insurance and Financial Services, Heather Wheeler said: “I am pleased to see the CII are prioritising what I see as key actions following the recent survey that has been published this week.
“Most welcoming is the fact that employers are now using various methods to attract new and diverse talent not just with graduate schemes but with apprenticeships as well, an area which I am passionate about, considering the number created in my own constituency.
“It’s also great to see that almost 40% of firms expect to increase the amount of apprentices they train – allowing anyone the opportunity to get into such an important industry.”
Employers reported having particular difficulty filling technical roles, where specialist knowledge and experience is required, and were worried about their ability to deliver a quality service and remain competitive.
Almost a quarter (24%) of those surveyed said that they would not be able to 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.
Labour MP Louise Haigh MP, who used to work in the insurance industry, said: “Training and development in the workplace is an essential tool for increasing productivity and skills – but employers are regularly reporting that barriers such as lack of funding, access to courses and time prevent them from releasing employees for professional development.
“At the other end of the system, the crisis in teacher recruitment and retention is making the problem worse...
“With the education system struggling to cope there is a real concern that the skills shortage will get considerably worse in the years ahead harming industries across the economy.”
Despite the concerns, however, the report also suggests that the sector remains resilient with over half of businesses expressing optimism about their plans for growth over the coming year.
Daniel Pedley, Public Affairs Manager at the CII, reflected: “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 here
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