UK Insurance Industry Suffers from Severe Staffing Shortage
The Current Problem
According to the Association of British Insurers, there is a severe shortage of workers in the insurance industry. This is not good for the economy, as many companies are unable to hire staff and could be forced to close their doors. This is due to the insurance industry failing to attract enough people to come and work in the market. As a result, it is taking longer than usual for claims handlers to process claims, which means that customers have to wait longer before they receive the compensation they need, as well as brokers struggling to get responses from Underwriters on cases they want to place into the market. It also means that if you're unfortunate enough to have an accident or suffer an injury while on holiday abroad (in Europe), you may find it more difficult than ever before to get adequate coverage and make a claim with your insurer.
How it Happened
The UK's insurance industry is suffering from a severe staffing shortage, resulting in a significant increase in the number of insurance jobs available. A recent report by British Insurance estimates that the number of claims handlers will potentially decrease by 60% over the next decade. The reasons for this shortage are varied and include an aging workforce, as well as more people retiring than entering the profession.
Why it Matters
The financial services sector is a key driver of the UK economy and insurance jobs are a vital part of that. However, the industry has been suffering from severe staffing shortages for some time now. Claims handlers in particular are thin on the ground, with many claiming they can't get their hands on enough skilled workers to help them deal with an ever-increasing workload. The skills shortage is particularly apparent in London and the South East, which are both major centres of financial activity in the UK.
What it Means for Customers
It means that many insurance jobs are left unfilled, which can lead to a loss in service quality and customer satisfaction. Customers will have to deal with longer wait times, less personalised attention, and a more difficult time getting the help they need when filing a claim.
What Can We Do About It?
It is important to recognise that the current staff shortage in the UK insurance industry is not just due to a lack of qualified candidates. It also stems from a lack of available entry level jobs and wages that are competitive enough to attract potential experienced employees. To solve this issue, it is necessary for firms in the insurance industry to offer better salaries and more opportunities for advancement, as well as looking at taking people from other industries and proving them with training to upskill them in the technical side of insurance.
Does it Affect You?
The recent staff shortage in the UK insurance industry has been caused by many factors. This issue is not affecting only insurance companies, but also brokers, MGA's and Claims providers. Once an insurance business loses a key employee , it becomes difficult for them to find a replacement with the relevant skills and experience needed.