Insurance Finance, Q2 review / Q3 prediction. London and the South-East

Despite major challenges in the external market driven by inflation, war in Ukraine and political instability, the insurance finance recruitment market has remained extremely resilient. The number of roles released to WPR has increased from the previous quarter by 22%, with expectations that the remainder of the year will continue on this trend.

Mainstream finance roles (Reporting, FP&A & Accounting Policy) are being released at a similar rate. However, the continuing theme appears to be the move towards Finance Transformation. Insurers are pushing hard to see the benefits of digitisation and automation. Programmes consisting of the implementation of new General Ledgers, web-based planning tools and data crunching systems are at the forefront of this transformation.

Other areas where we expect an uptick in demand will be around financial controls due to the continuing need to improve process and controls. IFRS17, with the 1st Jan 2023 deadline moving ever closer, insurers will need ensure a smooth transition when the go-live date strikes.

To summarise, we are recruiting into an extremely fast paced market. This can present a good opportunity for candidates to progress in their career should they consider an external move.

Commonly asked questions from candidates and clients?

-????????????????Why are there so many counter-offers?

With a shortage of good quality candidates in the market, companies are trying extremely hard to retain their valued staff after a resignation. This can be through an improved financial offer, or even in change of role/responsibility as the structures are very fluid. Whilst there is a lot of information on the dangers of accepting a counteroffer, it can be a route towards achieving a career goal so we can understand the temptation.

The best route to avoid this from a client’s perspective is a clear understanding over the role you are recruiting and what you can offer a candidate towards their career goals. We are almost at a stage where the ‘good candidates’ are interviewing the clients. Close partnership with your recruitment agency of choice has never been more important to navigate the potential pitfalls.

-???????What are companies doing towards the cost of living?

We are starting to see certain clients act upon the pay rises versus the cost of living, but they tend to work more on an individual basis. We have not seen any industry clients propose a blanket increase yet. We are benchmarking for a lot of clients so it something we suspect is a consideration. Base salaries are clearly on the rise for most roles we are recruiting.

Slightly different in practice as KPMG have offered their staff a pay rise (also PwC will be doing something similar) so it will be interesting to see how the rest of the market reacts.

-???????Hybrid working?

Generally, clients have landed on a 3 days / 2 days model and most candidates are happy with that. Being told to come in on specified days does take away that element of flexibility. It is such a key consideration for most candidates in their job search. We have also experienced challenges when trying to recruit for a role where you have to be in the office 4 days a week (or more).

-???????What are companies doing regarding Environment, Social, Governance (ESG)?

Whilst not an area of considerable recruitment yet, it is certainly becoming a big topic. We are discussing regularly with our clients. Decision maker will have to scrutinise how their decisions affect the environmental and social impact of their business.

Beazley were in the news recently as they have been added to the roster of insurance providers with broker Marsh on its assessment tool called ESG (environmental, social, and governance) Risk Rating (ERR). This is linked to access to capacity through the Lloyd’s syndicate. ESG criteria also now has a significant impact on the ability to get investment.

We will be taking a watching brief on this area and will report our findings in the coming months.

Please feel free to contact me, or the team on [email protected] should you seek any advice on the market.