Year in Review – UK Insurance Labour Market Trends, January 2025
AI adoption into Insurance results in hiring slowdown
Key findings:
- The insurance industry has witnessed an overall decline of 11.7%
- Claims most heavily impacted, -26.2% fall in vacancies YOY
- The regions see the sharpest drop, down 18.5%
- Aviva is leading the way in AI integration into Claims
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AI adoption into insurance is accelerating as businesses optimise processes to improve outcomes while streamlining headcounts, with claims in particular being impacted. As a result, despite a year where the sector saw record profits, vacancies have fallen by 11.7% in 2024 compared to the year before, with claims in particular heavily impacted. This is according to the latest UK Insurance Labour Market Trends report by Harrison Holgate and labour market data analysts Vacancysoft.
Underwriting is the only area of growth
In 2024, the broking division led with 3,414 vacancies, although it saw a significant 28.3% decline, reducing its market share from 35.8% to 30.9%. London and the South East dominated geographically, with 874 and 532 jobs, respectively. underwriting performed best, growing by 12.1% to 2,174 vacancies and increasing its share from 14.6% to 19.7%. The risk division experienced a 9.8% decline, maintaining 8.1% of the market share. Meanwhile in a sign of how the industry is transforming, IT is the leading skill in demand, accounting for a 36.6% share of all jobs in the sector.
London demonstrated resilience
Whilst London has proven to be resilient against the impact of the decline in hiring in the sector, with only a 1% drop in vacancies year on year, it is outside the capital, the fall is noticeable. The South East and West Midlands saw drops of 10.2% and 22.7%, respectively. The East of England faced a sharp 29.9% reduction, while the North East suffered the most, down 58.2% to just 387 vacancies. Wales and the North West showed more moderate decreases.
Howden is a leading player in the industry
The UK insurance sector is experiencing major workforce shifts, with Howden Group taking centre stage, achieving an extraordinary 143.0% increase in vacancies to 1,057 roles. This remarkable expansion reinforces its aggressive growth strategy and increasing market presence. Munich Re also demonstrated strong momentum, with a 45.0% boost in hiring, bringing its total vacancies to 409, reflecting its commitment to strengthening key operations. Similarly, Aviva continues its upward trajectory, reporting a 17.8% increase in job vacancies to 1,445, interestingly, they are also leading the way on AI adoption into claims specifically.
Meanwhile, The Ardonagh Group, which previously led industry hiring, has now slipped to second place, following a 6.9% decline in vacancies. This downturn signals a more cautious hiring approach amid broader economic pressures.
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