Key points:

• Insurance salaries rose by 4.7% over the past 12 months
• This rise is higher than the 4% UK inflation rate for the same period
• The increase in salaries is due to the need for more specialist skills as technology evolves, particularly in the areas of artificial intelligence and automation
• Wales and the south west saw the biggest increase in wages, while Northern Ireland experienced a salary decrease in the insurance sector
• In 2024, firms are predicted to focus on agile working to attract talent from outside the UK

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

In conclusion, insurance salaries are rising faster than the rate of inflation due to the demand for more specialist skillsets as technology evolves. This trend is expected to continue in 2024, with a focus on agile working to attract talent from outside the UK.