Year in Review – UK Insurance Labour Market Trends Report, January 2026
Insurance Hiring Drops 5.7% as AI and Automation Reshape Roles
Key findings include:
- UK insurance vacancies declined 5.7% year-on-year in 2025.
- London remained the largest hiring hub with 44.3% of roles.
- Claims roles fell 28% as automation reshaped processing.
- Digital and IT roles grew 6.6% as insurers modernised systems.
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AI adoption reshapes hiring across the insurance sector
Artificial intelligence is moving rapidly from experimentation to routine use across the UK insurance industry. Insurers are deploying AI in underwriting, claims processing and customer service to automate repetitive tasks, detect fraud and improve pricing accuracy. Many firms are also appointing senior leaders with stronger technology expertise as digital capability becomes central to business strategy.
Against this backdrop, hiring in the sector declined by 5.7% in 2025. Much of this drop was concentrated in the first quarter. From April to December, vacancy levels were higher than the previous year, suggesting a gradual recovery. The more significant shift lies in the composition of hiring, as insurers increasingly prioritise digital, analytical and transformation-related skills.
Technology and automation reshape skills demand
Recruitment patterns across the insurance industry are changing as automation transforms core functions. Claims remains the largest specialist area, accounting for nearly 30% of vacancies, although roles fell by 28% between 2023 and 2025 as routine processing became increasingly automated.
Underwriting vacancies declined only slightly, falling 1.1%, reflecting continued demand for expertise in pricing, regulatory compliance and complex risk assessment. Broking roles experienced the sharpest decline, dropping 38% as digital platforms increasingly automate placements and workflows. Meanwhile, IT and digital roles grew by 6.6% year-on-year as insurers expanded cloud infrastructure, data analytics and AI capabilities. Demand is also shifting toward professionals who combine technical, analytical and commercial expertise.
London dominates as regional hiring diverges
The UK insurance labour market remains highly concentrated in London, which accounted for 44.3% of specialist vacancies in 2025, despite a 4.3% decline in roles compared with the previous year. The capital continues to host the majority of underwriting, broking and claims operations, supported by international connections and the concentration of major headquarters.
Regional trends were more uneven. The South East, West Midlands, South West and East of England all experienced declines in hiring as firms consolidated operations and automated routine roles. By contrast, the North West and Scotland recorded growth, supported by targeted investment, regional innovation hubs and foreign direct investment in financial services.
Corporate strategy and consolidation reshape hiring
Company-level hiring trends highlight the growing influence of mergers, technology investment and regulatory pressures. Aviva reduced vacancies by 40.1% following its £3.7bn acquisition of Direct Line Group as overlapping functions were consolidated. Gallagher and Willis Towers Watson also reduced hiring by 39.7% and 6.7% respectively as firms streamlined operations and adopted digital platforms.
Other insurers expanded recruitment. Legal & General increased vacancies by 2.8% through investment in digital underwriting and specialist teams. Royal London grew hiring by 21.1% as it expanded investment-linked products, while Davies more than doubled vacancies as demand for consultancy and technology-enabled claims services increased. Firms investing most heavily in digital capability are likely to shape the next phase of growth.
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