At the end of 2025, the industry was balancing economic pressures and regulatory changes with a fundamental shift in what both employers and professionals prioritise. While the market has seen a slight contraction in the number of available roles, the competition for skilled, experienced employees has never been more intense. This creates a unique dynamic, where finding the right talent, and retaining it, requires more than just a competitive salary.
The hiring climate: A market of quality over quantity
The insurance job market has experienced a noticeable tightening. A decrease in the overall number of vacancies, partly influenced by increased National Insurance contributions for employers, means that businesses are making more considered hiring decisions. This has not, however, translated into an employer-driven market. Instead, it has intensified the focus on a smaller, highly sought-after pool of experienced professionals.
The result is a candidate-led environment, but one with a twist. There is a shortage of both jobs and qualified people, creating a delicate balance. When a strong professional with proven technical experience becomes available, employers who are actively recruiting, or even just passively interested in strengthening their teams, must move quickly. This has led to a more proactive, candidate-to-market approach, where skilled individuals can often generate interest and create opportunities for themselves simply by signalling their availability.
The most consistent demand is for roles that directly contribute to the bottom line. Commercial account handlers and account executives remain the bread and butter of the sector, as their focus on renewals and new business generation is vital for bringing revenue into the firm. However, we are also seeing a steady need for underwriters, whose risk assessment and pricing skills are fundamental to a company's profitability.
What employees want: It’s not just about the money
One of the most significant shifts in the insurance sector is the evolution of jobseeker priorities. While compensation is always a factor, it is no longer the primary driver for many professionals. Instead, a more holistic view of the employment package is taking precedence, with three key elements consistently ranking higher than salary.
First and foremost is hybrid working. The desire for flexibility is not just persisting, it's strengthening. Professionals are now seeking arrangements that offer a greater balance, with many expressing a preference for two days in the office rather than three. Companies that offer and protect this flexibility have a distinct advantage in the talent market. We’ve seen highly experienced professionals become open to new opportunities based on relatively small changes to their hybrid schedule, such as an employer increasing their in-office days.
Second is progression. Insurance professionals are analytical and detail-oriented, and they apply this mindset to their own careers. They are looking for clear, tangible pathways for development. This doesn’t always mean climbing the management ladder - it can also involve gaining new technical skills, taking on more complex portfolios, or being sponsored through qualifications. Employers who can demonstrate a structured plan for an employee’s growth are far more likely to attract and retain employees.
Finally, company culture and values play a crucial role. Those looking for work are drawn to organisations with a strong, positive reputation and a supportive environment. Firms known for looking after their people, promoting mental health and wellbeing, and having clear, authentic values find it easier to attract interest. A company with a ‘warm hug’ feel, can be more appealing than a competitor offering a slightly higher salary but lacking in cultural strength.
The great salary divide
Salary expectations in the insurance sector are complex and can vary dramatically. Compensation is, compensation is heavily influenced by the type of company, its location, and its financial strength.
Navigating this landscape can be challenging for both candidates and employers. For professionals, it means understanding that the highest-paying roles often come with expectations of a deeper and more complex technical skill set. For employers, particularly smaller or independent brokers competing against larger firms, it highlights the need to differentiate themselves through other means, such as superior culture, better work-life balance, or clearer progression opportunities. It’s a constant balancing act, and the companies that succeed are those that understand their place in the market and build their employee value proposition accordingly.
The non-negotiable role of technical expertise
In the insurance industry, experience and technical knowledge are paramount. Unlike in pure sales roles where charisma and personality can be a deciding factor, insurance requires a deep understanding of policy wordings, risk assessment, and complex scenarios. Employers almost universally prioritise proven experience over potential.
This is why technical tests are a standard part of the interview process. Companies need to be certain that an applicant possesses the necessary skills to handle the complexities of the role from day one. An individual from a personal lines background, such as car or home insurance, would find it very difficult to transition into a commercial role without direct experience, as the knowledge base is not easily transferable.
The Chartered Insurance Institute (CII) qualification is highly desirable and serves as a formal validation of a professional's technical knowledge. While many employers will hire people without the CII, they almost always expect them to have the desire to gain the qualification. A key benefit offered by most firms is the funding and support for employees to complete their exams. This investment in professional development is a powerful retention tool and a clear signal to jobseekers that a company is committed to their long-term growth.
National trends: Digital transformation, AI, and sustainability
Across the UK, the insurance sector is experiencing a period of profound transformation driven by advances in technology and changing societal values. Digitalisation is streamlining once-manual processes, leading to faster responses for clients, improved risk assessment, and greater efficiency throughout the policy lifecycle. Cloud-based systems, customer self-service portals, and automated workflows are now commonplace, helping firms adapt to the evolving needs of both businesses and individuals.
Artificial intelligence has moved from a future-facing concept to an integral part of day-to-day operations. From automating claims handling and underwriting decisions to harnessing predictive analytics for fraud detection and pricing accuracy, AI is opening up new opportunities to enhance productivity and free employees to focus on higher-value tasks. For professionals, this also means keeping pace by building new technical skills and remaining adaptable to changing workplace demands.
Sustainability is another driving force shaping the sector’s trajectory as we enter 2026. Insurers are increasingly required to demonstrate how their practices contribute to environmental, social, and governance (ESG) objectives. Clients and regulators alike are looking for evidence that insurers are actively assessing climate-related risks, supporting green investments, and promoting responsible business conduct across their operations. As a result, insurance companies are investing in employee training, reporting capabilities, and policy innovation to meet these shifting expectations.
Ultimately, the combination of digital transformation, AI integration, and sustainability initiatives is not just changing how insurance firms operate - it is redefining what it means to build trust, deliver value, and create meaningful careers in the sector. Companies that actively embrace this change are poised to lead the market, offering rewarding opportunities for those ready to adapt and grow.
For more insights into the insurance and financial services labour market and for reliable salary benchmarks for the sector, download Reed's 2026 insurance and financial services salary guide here.
