RETURNING TO CONFIDENCE INVESTING FOR GROWTH. Insurance Market Update hays.co.uk/insurance

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1 RETURNING TO CONFIDENCE INVESTING FOR GROWTH Insurance Market Update 2014 hays.co.uk/insurance

2 FOREWORD As confidence in the economy increases, insurance companies throughout the UK are looking to embrace new technology and maximise business opportunities, while also continuing to manage their compliance with changing regulations. All of these factors are creating new jobs and stimulating movement across many of the professions that operate within the sector. We speak to many employers and jobseekers every day so we know how important it is for a business to recruit and retain the right people, especially in a sector where specialist skills and strong client relationships are highly prized. As part of our commitment to sharing meaningful insight into the employment market, this report highlights the skills that are in demand, salary trends and the future outlook for hiring for the remainder of 2014 and into 2015 covering a wide range of job functions within insurance. We hope that you find this report both informative and useful. Zoe Morris Director Hays Insurance Contents Introduction 1 Market insight Actuarial 2 Audit 3 Broking 4 Claims 5 Compliance 6 Executive Support 8 Finance 8 Human Resources 9 Legal & Company Secretarial 11 Marketing & Communications 12 Procurement 13 Project & Change Management 13 Risk 14 Tax 15 Technology 16 Underwriting 17 Conclusion 19 About us 20 Our global reach 21 INTRODUCTION For most of 2013, hiring within the UK insurance market held steady as the sector maintained a business-as-usual attitude and tried to gauge the true strength of the economic recovery. However, as we entered 2014, there was a notable increase in recruitment as employers finally began to feel confident that economic growth was sustainable. They invested in staff across a range of functions to support business strategy and have largely continued with this approach since. Inevitably, this return to confidence is manifesting itself more obviously within certain job functions. For example, insurers are using customer-targeted marketing to capitalise on economic growth, so they are creating new roles for marketers with an aptitude for data analytics. Data is also driving hiring of change and technology professionals since executives want to be able to draw on insightful information in order to take their businesses forward. While insurance is not as highly regulated as banking, regulation does still influence recruitment within the sector. At present, insurers and brokers are taking on large numbers of company secretarial staff to help them comply with UK and international rules. Insurers are also turning to operational and credit risk professionals to ensure that their business processes are watertight and that they are calculating their credit risk correctly. And now that an implementation date of 1 January 2016 has been set for the Solvency II directive, demand for actuaries is increasing again. At Hays Insurance, we expect to see employers invest in bringing more and more talented individuals onto their teams as 2014 continues. This, in turn, will bring greater movement within the sector and with it some interesting opportunities. Insurance Market Update

3 Actuarial After a relatively quiet 12 to 18 months, insurers are again beginning to hire actuaries in greater numbers as they prepare for IMAP submissions and the implementation of Solvency II. Now that the EU has confirmed that Solvency II will apply from 1 January 2016, the need for actuaries across the life and non-life markets is gradually gathering pace. Delays to implementation led to reduced demand in 2013, but insurance businesses are now hiring again as they prepare for the new directive to take effect. As a result, demand for actuaries is the greatest that it has been for over 12 months, although the market is still best described as steady rather than booming. Employers across the sector, from general insurance and life insurance to the Lloyd s market and the brokerages, are investing in actuaries. Some hiring is also taking place within the banks and among the Big 4 professional services firms. While a variety of roles are being recruited for, actuaries with experience of capital modelling and pricing are among the most keenly sought after. Although more positions are available than 12 months ago, competition for the best jobs remains high. Insurers have high expectations and look for those who possess sound commercial awareness in addition to strong technical skills. Achievements and the positive impact individuals have had in previous roles are of greater importance than ever before. The high number of applications for certain jobs has meant that some very capable actuaries have lost out on securing a position that they desired. The market for actuarial contractors has started to improve since the start of Contractors were badly affected last year due to the delay to Solvency II and subsequent cuts in budget. But, we predict that more temporary contracts will be generated over the next 18 months as insurers continue to invest in pricing experts and as the IMAP submissions and Solvency II deadlines draw closer. So the end of 2014 and 2015 could potentially be a busy time for contract professionals. A newly qualified actuary in life insurance will typically earn 60,000 to 70,000, rising to 100,000+ for those with substantial post-qualification experience. In general insurance, a newly qualified actuary can command a slightly higher salary of 70,000 to 80,000, climbing to 110,000 or more for candidates with considerable post-qualification experience. Bonuses are typically in the region of 10-20%. When an actuary moves job in this climate, they are likely to secure a pay rise of 5-10% but many also move for the challenge and future prospects of a new role rather than for a pay rise. Since employers continue to have the upper hand in the actuarial recruitment market, it is unlikely that pay for permanent roles will increase significantly this year. Contractors typically earn between 700 and 1,000 per day. The shortage of temporary roles over the past 18 months meant that some contractors had accepted lower day rates than they would previously have commanded. But rates could shift upwards again if demand for contract professionals starts to pick up significantly We expect to see a continued rise in the number of permanent and temporary positions listed over the next 18 months in response to the economic upturn and the implementation of Solvency II. Audit The stature of internal audit within insurance is growing as employers see the benefit of investing in this vital function. Regulatory pressures, along with a general awareness of the importance of good corporate governance, are prompting insurers and brokers to grow their operational audit functions. While financial services regulator the Financial Conduct Authority (FCA) is not scrutinising the insurance sector as closely as the banking sector, internal auditors are still crucial to ensure that an insurer s processes and actuarial models are effective. Organisations also appreciate that a proactive audit function can help to make a business profitable and successful. By its nature, broking is complex and risky, so demand for internal auditors is highest within this sub-sector of insurance. Brokers want assurance around the data on which they base their risk assessments, to ensure that they have a robust and correct understanding of the level of risk. Internal auditors with excellent knowledge of broking are highly sought after, but unfortunately these candidates are in short supply. Therefore, employers are recruiting newly qualified accountants with insurance audit experience directly from the Big 4, and most of the roles that arise are at this level. There is particular demand for internal auditors who speak French, German, Spanish, Italian and other European languages and can work in the international subsidiaries of brokers and the Lloyd s syndicates. Insurance businesses are also starting to invest more heavily in the IT audit function as they become more attuned to the responsibilities and risks associated with using technology and storing customer data. Some of the large general insurers and big brokerages have followed the example of the banking industry by setting up IT audit teams to review their hardware and software applications as well as technology-related processes for example, checking whether people who have moved roles within the organisation have had their access rights amended. Employers prefer both their operational and IT internal auditors to be permanent members of staff. Audit professionals need a solid understanding of the business in order to be effective at identifying risks and areas where processes are falling down. They must also build strong relationships with stakeholders so that they can break down barriers and implement controls. For this reason, contractors are rarely used. An internal auditor who has joined an insurer or broker s operational audit function directly from the Big 4 would typically earn between 50,000 and 70,000 depending on level of experience, with a 10-15% bonus on top. Due to their relative seniority, IT auditors are more likely to command between 70,000 and 90,000 with a similarly sized bonus. Day rates for contractors in both operational and IT audit are in the region of 300 to 500 where such roles exist. There should be heightened demand for internal auditors this year as insurers and brokers realise the benefits of investing in this vital function. At Hays, we expect an uplift of around 10-15% in the number of operational audit jobs over the next 12 months. This uplift will not be quite as significant in IT audit since the insurance sector has not yet embraced the function in a major way, but we should still see a 5-10% increase in the volume of IT audit jobs that are created. Within insurance, internal audit is here to stay. Most insurers IT audit teams are small at present but are growing all the time. General insurers are populating their teams with professionals who have come from the banking sector since that is where a lot of the relevant knowledge has been concentrated until now. Brokers, however, are more specialised so they prefer to take experts who have an insurance background. In general, a lot of the recruitment is at director and senior level. Insurers want senior personnel who can put structures and strategies in place for IT audit and talk to stakeholders to find out how audit can really benefit the business. While financial services regulator the Financial Conduct Authority is not scrutinising the insurance sector as closely as the banking sector, internal auditors are still crucial to ensure that an insurer s processes and actuarial models are effective. 2 Insurance Market Update 2014 Insurance Market Update

4 Broking Although brokerages are still cautious about hiring, plenty of roles exist for individuals with strong sales skills and large books of business. Claims The wet winter has resulted in more claims-handling roles in the Home Counties and the South of England. As the economic outlook has improved, so has demand for personnel in brokerage firms. The Lloyd s market has seen increased levels of recruitment activity as 2014 has progressed, with employers seeking out talented individuals who can bring business with them. Roles are arising at every level from account handlers through to managing directors. Candidates with knowledge of energy, construction and North American lines of business are particularly sought after, as are those who specialise in political risk. In the Home Counties and the South, brokerages are recruiting across all lines, with most roles focused on new business rather than servicing. A spate of recent mergers and acquisitions has made the market in this area more competitive and prompted brokerages to invest money in sales-minded employees who can generate more business. So individuals with sales skills or those who can bring clients with them from their present brokerage are in short supply and have their pick of roles. In the Midlands and the North, sales skills are also prized but are hard to come by, so some brokerages have been hiring business development executives from sectors outside the insurance industry, such as banking. In these regions, brokerages are focusing on clients in niche areas such as construction, property and technology as a way to differentiate themselves from their competitors. Meanwhile, professional indemnity specialists are currently in demand due to a number of large insurers expanding their service operations in Manchester. Brokerages expect their staff to be articulate, credible and professional as well as committed to providing excellent client service and developing the business. Furthermore, they need to be a good fit with both the brokerage and the role. Knowledge of Lloyd s is invaluable for individuals who want to work in that particular market. Employers also look for candidates who are willing to study for professional examinations from the Chartered Insurance Institute (CII) and who are able to demonstrate a passion for the industry that they work in. From a candidate s point of view, having a CII qualification makes them well placed to justify a market-rate or above market-rate salary. The emphasis on new business means that there is limited demand for contractors within broking at present. Brokerages prefer to hire permanent employees who can invest time in building relationships. Nevertheless, the Lloyd s market does take on temporary workers during busy times such as renewal season and to cover long-term absences due to sickness and maternity leave. Salaries have risen since last year and employers are increasingly making counter offers to retain valued staff. In London, back-up technicians earn around 27,000 to 45,000 while commercial development executives take home between 35,000 and 67,000 and brokers command between 50,000 and 150,000 depending on the line of business. In the Home Counties and South, back-up technicians can secure between 27,000 and 50,000 with commercial development executives earning 35,000 to 50,000. In the Midlands and North, the shortage of commercial development executives means that they can command between 40,000 and 70,000 plus a car and benefits package. While there is steady demand for broking professionals, the hiring market has still not recovered to the level of activity that existed prior to the global financial crisis. At Hays, we believe that employers are still cautious, although they are more willing to invest in speculative hires than they have been over the past couple of years. They want to retain their existing staff in order to stay ahead of the competition and avoid the time and cost implications of rehiring. This is driving up salaries a trend that is likely to continue this year. Employers that want to attract the most talented staff need to offer an excellent benefits package since candidates will often compare pension schemes, medical cover, holiday allowance and bonus potential and ask future employers to match their current benefits. The insurance sector will always have a constant need for claims handlers, particularly in high-volume business lines such as motor and house insurance where staff turnover can be significant. It is difficult to predict the sector s future hiring needs, however, because claims recruitment is largely related to unexpected events such as natural catastrophes rather than to economic cycles. For example, demand for claims handlers from general insurers and brokers rose in the Home Counties and the South of England at the start of 2014 due to the extreme weather over the winter. In addition, the Jackson Reforms and the Ministry of Justice Claims Portal Extension have changed the way that motor and personal injury liability claims are managed, which resulted in a substantial increase in demand for liability claims handlers in the Home Counties and the South compared with the same period last year. In contrast, there has been a noticeable lull in demand for claims handlers in London. Most of the roles are very junior and while there are some at manager grade, few positions are available in between those levels i.e. for experienced claims handlers. This is mostly down to the Lloyd s market drawing on its own network when recruiting. Also, if a broker wins a book of business, it may TUPE over an entire team, including claims handlers, to manage that business in future. Within the Lloyd s and broking markets, employers tend to look for claims handlers with specific experience of a particular line of business, for example, marine cargo or aviation. For junior roles, they also favour IT skills because the sector is moving towards electronic claims filing. At a more senior level, an ability to manage relationships is key. In general insurance, roles tend to be broader so candidates with all-round experience of personal lines such as home, motor and pet are sought after. In the Midlands and the North, demand for claims handlers has been subdued as a result of a large-scale redundancy programme undertaken by one of the big employers. General insurers have been taking on employer s liability and public liability claims handlers, however, and brokers have also been hiring claims handlers. At Hays, we have noticed a trend for brokers in the North West to recruit claims executives, who are responsible for handling the relationship between the client and the broker when a claim needs to be made and offering risk-management advice. Throughout the UK, most recruitment for claims handlers is currently done on a replacement basis and employers are not growing teams. As there are plenty of candidates in the market at present, competition for the best claims positions is high. A qualification from the Chartered Insurance Institute (CII) can be advantageous to claims handlers on the hunt for a new job, although employers are increasingly willing to train candidates who show potential. In the capital, the contract market is flourishing, although outside London there is limited demand for temporary claims handlers. Around 40% of claims roles in London are temporary and these are mostly six to nine month contracts to cover maternity leave and secondments and other similar situations. Salaries have hardly moved in the past year and claims handlers will change jobs for small pay rises of between 1,000 and 3,000. Outside London, claims handlers typically earn between 18,000 and 25,000, rising to between 21,000 and 28,000 in the capital. Senior claims handlers can command more, with pay in the Midlands and the North typically between 25,000 and 35,000, rising to 40,000 in the Home Counties and the South, and 45,000 in London. Claims managers can command between 30,000 and 45,000 in the Midlands and the North, with salaries starting at 45,000 in the Home Counties and the South, and ranging between 50,000 and 80,000 in London. Claims handlers working on contract in London secure hourly rates of between 12 and 15 per hour, rising to between 20 and 25 if they are senior claims handlers. The insurance industry is embracing electronic claims filing, so many businesses are expected to invest in overhauling their outdated claims systems over the next two years. They are also using i2 fraud intelligence analysis to spot fraudulent claims. These developments will lead to increased demand for technologically capable claims staff and open up niche roles, such as i2 claims handlers. On the whole, recruitment into claims is likely to stay steady on both the permanent and the temporary front throughout 2014 with most hiring being for replacements. We expect the Home Counties and the South to remain the regions where most new roles arise. A qualification from the Chartered Insurance Institute can be advantageous to claims handlers on the hunt for a new job, although employers are increasingly willing to train candidates who show potential. 4 Insurance Market Update 2014 Insurance Market Update

5 Compliance Experienced compliance professionals are in short supply so insurers are competing fiercely to secure their services. The global financial crisis has been followed by a wave of regulation that has particularly affected the banking sector, but also the insurance sector to a lesser degree. In April 2013, UK insurance regulator the Financial Services Authority split into two new bodies the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). This means that insurance businesses now have two regulators to comply with, instead of one, increasing the workload for compliance teams. Over the past few months, the FCA has been heavily focused on the conduct of insurance companies, prompting them to invest in compliance professionals to help them manage their conduct risk. Employers are actively growing their compliance teams rather than restricting themselves to replacement hires creating high demand at all levels. Regulators see Lloyd s of London, in particular, as high-risk because it is a wholesale market, so the Lloyd s syndicates are recruiting in significant numbers. The strong demand for compliance professionals that exists across the insurance sector has created a candidate shortage and sparked fierce competition among employers for the best personnel. This shortage is especially acute for mid-level compliance officer roles because employers want professionals who have several years experience, knowledge of the relevant regulation and an ability to make a positive contribution straightaway. The Lloyd s market is suffering from a dearth of candidates because it is so small and specialised. Since the nature of regulation varies according to product, employers prefer to hire compliance staff with specific experience of their part of the insurance sector. For example a brokerage will look for compliance professionals with a background in broking, and a Lloyd s syndicate will seek someone with Lloyd s experience. Within the highly specialised Lloyd s market, employers even go a step further, looking for both a Lloyd s background and knowledge of a specific aspect of regulation. Compliance professionals tend to come from a legal background. But, as compliance increasingly moves away from being a back office function to being business facing, employers are demanding that their compliance personnel are commercially aware and adept at finding business solutions to regulatory challenges while being technically knowledgeable. Permanent hires are the bedrock of compliance recruitment because regulators want insurers to have established and stable compliance teams in place to implement new rules. The growing candidate shortage has meant that employers have had to bring in temporary contractors to cover the staffing shortfall. These professionals often find that their contracts become permanent positions if they fit in well with the business. Over the past year, employers have had to act fast and pay well to recruit and retain staff, which has resulted in some dramatic pay rises for individuals who have taken a new job. When compliance professionals move roles, they can potentially secure a 15-20% pay rise. We believe that insurers need to be focused on ensuring that their existing staff are remunerated at market rates since the candidate shortage has resulted in companies actively headhunting the best professionals. Salaries range from 30,000 to 120,000 depending on experience, with permanent compliance officers in London earning around 50,000 to 70,000. They are usually awarded bonuses of approximately 20% of their base salary. The Lloyd s market is still the best-paid sector within insurance and professionals like the idea of working there because it has a buzz. For contractors, day rates tend to range between 300 and 1,200 depending on the individual s experience. Some very experienced professionals are now choosing to focus on highly paid contract work, rather than take up permanent positions. This is a trend that is likely to continue if the candidate shortage intensifies and compliance professionals feel more confident about the demand that exists for their skills. Compliance professionals will find that there is continued demand for their skills throughout 2014 as employers continue to expand their teams. At Hays, we expect to see the candidate shortage become even more pronounced, salaries to keep rising and employers to become even more proactive about poaching staff from their rivals. Employers are demanding that their compliance personnel are commercially aware and adept at finding business solutions to regulatory challenges while being technically knowledgeable. 6 Insurance Market Update 2014 Insurance Market Update

6 Executive Support Insurers are now investing in executive assistants to support their leadership teams. The market for executive support positions in insurance is buoyant right across the sector. In particular, there was a significant upsurge in the number of temporary contracts on offer at the start of the year. But demand for staff to fill permanent roles rather than temporary contracts will probably become more pronounced in the second half of 2014 as the economic recovery progresses. Changes at senior level, such as the appointment of new heads of department, have led to insurers creating a number of executive assistant (EA) positions. This is in direct contrast to a year ago when cautious employers were more likely to be found recruiting for team secretary positions. Then team secretaries seemed a cost-effective option since they are paid less than EAs and work with up to 30 staff members. On the other hand, EAs typically support executives on a one-to-one or one-to-two basis, handling diaries, organising meetings and preparing board packs. So by creating these positions insurers are showing confidence in the future and a willingness to invest in their leadership teams. When hiring both permanent and temporary executive support staff, employers look for those with previous experience of the insurance market and who understand its complex terminology. EAs may also be expected to have experience of working across multiple international time zones and possess advanced Microsoft PowerPoint and Outlook skills. Candidates hold the cards in the recruitment market at present and those with a background in insurance can find new roles very quickly. At Hays, we have noticed a trend for employers to hire EAs on a temporary basis first, then offer them a permanent contract at a later date. The average temporary contract lasts around three months Agency Workers Regulations specify that after 12 weeks a temporary employee is entitled to the same rights as a permanent employee. EAs need to have strong personal skills and the ability to build good one-on-one relationships so a three-month trial period is a good way of ensuring that the executives and their assistants are compatible before both sides make a permanent commitment. Salaries for executive support staff who work in insurance are higher than for many other sectors. Over the past 12 months, pay has not shifted significantly but, as more jobs are created at EA level, there is a rise in better-remunerated positions. A permanent EA can command a salary of between 40,000 and 55,000, while EAs on short-term contracts typically secure 20 per hour. A team secretary can earn around 34,000 to 36,000, or take home 16 per hour on a temporary contract. There is a growing trend for insurers to offer bonuses of around 10% to their permanent EAs. It is likely that in future we will also see team secretaries and administrative support staff receive bonuses as employers look to keep hold of their best staff. The outlook in executive support is bright, with temporary-to-permanent contracts set to become even more common as 2014 progresses. But as more temporary personnel are taken on in permanent positions, the pool of interim staff will shrink, which could force employers to hire directly into permanent roles. Therefore, we expect to see more permanent hiring in the second half of Finance Finance professionals are supporting M&A activity and large-scale change projects as well as driving business growth. Confidence has noticeably returned to the insurance sector, and M&A activity and restructuring programmes have also resulted in the creation of new finance positions. Accountants in particular, play a key role in change projects by driving cost efficiencies and are charged with setting up a new finance function following a merger or acquisition. Senior management within insurance increasingly demand insightful management information to help drive profitability, reduce costs and improve expense ratios. CFOs and finance directors want their teams to work more closely with the wider business to secure this information and help to achieve business objectives. Finance professionals demonstrating strong management and relationship-building skills, including analytical, business-planning and business-partnering abilities, are highly sought after, to bridge the gap between finance and the business. Demand for newly qualified accountants remains high, with employers sourcing talented individuals from practice, particularly those who trained with the Big 4. Businesses are increasingly prepared to replace departing middle managers with newly qualified accountants, meaning they can offer them better opportunities as their careers progress. In London, we have seen fewer requests for junior staff members who are qualified by experience, which is partly due to some companies moving their transactional finance teams out of London to regional destinations such as Glasgow or Ireland. Many insurers are also using offshore shared service centres in India to keep costs down. As there is a shortage of finance professionals with a background in insurance, employers need to be proactive about attracting talent to their organisations. The Lloyd s market has an advantage, since candidates are attracted by the better pay and interesting work that it offers, and it has been actively trying to lure financial planning and analysis professionals away from the large general insurers. On the whole, employers have to look outside the insurance sector to find strong candidates and will often recruit from financial services or practice. The interim market is getting busier, with M&A and restructuring programmes driving temporary hiring. Companies need interim professionals to staff change projects or backfill for permanent staff members who have been seconded onto those projects. They may also be cautious about committing to a permanent increase in headcount so they hire interims on a three to six month rolling contract before deciding to make them permanent. While salaries did not move significantly in 2013, they are likely to rise this year as demand rises and employers use financial incentives to attract the best. Professionals who switch roles typically get pay rises of around 5%, although they tend to move for career progression rather than a higher salary. Finance analysts earn around 50,000, with business partners commanding up to 65,000. Financial controllers in London currently take home between 70,000 and 110,000, with bonuses of 20% or above. Day rates for finance contractors are typically between 350 and 500, with senior contractors earning up to 1,500 per day. We expect that the economic recovery will bring increased demand for both permanent and temporary finance professionals during Insurance businesses will want to drive profitability, so will invest in finance staff to give them an edge over competitors. Financial planning, analysis and business-partnering skills will continue to be sought after and employers will also invest in financial controllers to support their growing businesses. In 2015, there may be heightened demand for individuals with specialist knowledge of Solvency II as the implementation date for the directive looms. And if insurance businesses undertake more M&A activity, we could see sudden spikes in demand for interim staff. Human Resources Demand for HR professionals has heightened since the start of 2014 with employers of all sizes realising the value of their expertise. Human resources professionals have been highly sought after in the insurance sector since the start of the year. The market optimism sparked by the economic recovery, together with the transformation programmes being undertaken by some large insurers, has led to an increase in HR jobs. Employers are hiring into a wide range of permanent and temporary positions in significant numbers. Transformation tends to involve restructuring and often offshoring so insurers are seeking HR specialists with employer relations and project expertise to manage sensitive change processes. Organisations are investing for growth, which is leading to increased demand for recruitment experience. They are also hiring learning and development specialists who can address employee skills gaps, both in terms of technical and soft skills, and help to develop the organisation s future leaders. While large insurers usually hire strategic HR business partners and HR specialists, smaller employers in the industry are more likely to look for generalists who can handle a wide range of HR activities including recruitment, performance management, reward and employee relations. Some organisations are now hiring qualified HR professionals instead of delegating HR responsibilities to their office manager as they did previously. The best HR professionals have a credible persona and emotional intelligence along with solid stakeholder management and communication skills. Those with a background in insurance have a natural advantage although employers will also look at HR professionals from financial services and professional services. Salaries have not moved significantly in the last year and they are not likely to increase much during HR managers can expect to earn around 50,000 to 70,000 with business partners taking home a salary of 60,000 to 70,000. Depending on the size of the company, heads of HR in insurance can command upwards of 100,000 with a performance-related bonus of around 10-15%. Many insurers offer excellent flexible benefit packages particularly around pensions and insurance. We believe that demand for HR professionals in insurance will stay steady for the foreseeable future, with the permanent market in particular likely to get busier as 2014 progresses. While insurers like the continuity of permanent staff, they will always rely on interim professionals to cover leave or ebbs and flows in workflow or projects. Organisations are investing for growth, which is leading to increased demand for HR professionals with recruitment experience. 8 Insurance Market Update 2014 Insurance Market Update

7 Legal & Company Secretarial Insurance businesses are taking on extra company secretarial staff to comply with regulation, but are still cautious about hiring lawyers. Legal It is possible that the general insurers may need to start hiring lawyers in greater numbers this year due to greater competition for candidates in the legal market. As the economic climate has improved, law firms have begun to recruit heavily and larger workloads mean they may not be able to send lawyers out on secondment to the extent that they have done previously. Furthermore, as insurers themselves get busier, they will need more lawyers to support the work of underwriters undertaking more negotiations and drafting more documents. While it is regulated, the insurance sector has not been subjected to the same level of regulation as the banking sector over the past few years, which means it has a more limited demand for lawyers. In general, insurance businesses do not have large legal teams. Where they need additional legal support they tend to rely on secondees from the major law firms because they get technically strong lawyers for a good price with additional back-up from the law firm itself. Most insurance businesses make replacement hires into their already lean legal departments, although the large banks have been investing in insurance lawyers to provide contract support to their sales teams. Where insurers are hiring lawyers, they tend to look for senior personnel although demand is not centred on one particular area of expertise it spans a broad range of skills from general commercial through to specialised M&A. Senior lawyers are seen as a safe pair of hands who know how to explain legal issues clearly to the teams within the business and can communicate effectively with senior managers. Legal salaries within insurance are slightly up on 2013 although lawyers normally need to move jobs to secure market rate. An in-house lawyer with significant post-qualification experience (PQE) can expect to earn around 70,000 to 75,000, rising to between 80,000 and 85,000 if they have five years PQE. Heads of department typically command around 130,000. Bonuses at all levels are around 20-30%. The insurance sector has less demand for legal contractors than the banking sector because it is not as involved with complex deals. Contractors day rates reflect this and are in the region of 350 upwards depending on experience. We believe that hiring of lawyers is likely to increase in the second half of this year as market pressures prompt insurance businesses to invest in in-house staff. The in-house legal functions of large general insurers, rather than brokerage firms, will have the greatest demand since they need lawyers to assist their underwriters and support a broad range of commercial activities. Legal salaries within insurance are slightly up on 2013 although lawyers normally need to move jobs to secure market rate. Company Secretarial Insurance businesses are some of the most active recruiters of company secretaries at present as they look to comply with regulation from Europe and the newly formed regulators in the UK, the Financial Conduct Authority (FCA) and the Prudential Regulation Authority. Over the past couple of years, regulators have issued some hefty fines to insurance businesses that have broken the rules, prompting brokers, in particular, to realise the importance of compliance. Both new and replacement company secretarial roles are being listed with many of them created within brokerage firms. General and life insurers tend to have the largest teams whilst those in the Lloyd s syndicates are leaner. Within smaller brokers, there is usually a single company secretary, rather than a team. Regulators are taking a keen interest in the corporate governance of insurers and brokers regulated subsidiaries, so company secretaries are examining company structures to decide whether the number and organisation of subsidiaries is appropriate, and if corporate governance is up to par. Also, company secretaries are assessing the risks associated with each of the group s subsidiaries. When hiring, employers look for company secretarial professionals who have prior financial services experience. Those with a background in banking are particularly prized due to their understanding of financial regulation. They also need to be familiar with the latest rules including the Companies Act 2006, the Solvency II capital directive, the new strategic reporting requirements for the annual report and accounts, and the FCA s Remuneration Code on directors pay and benefits packages. In addition to their technical expertise, professionals need to be good at stakeholder management and possess excellent communication, minute-writing and organisational skills. At a senior level, it is imperative that they are strong strategic thinkers who are able to both influence and challenge directors where necessary. They should also have knowledge of the Corporate Governance Code and the Listing Rules if the business is listed in the UK. Most company secretarial roles are permanent, although the contract market is busy due to a constant demand for maternity cover and for individuals to temporarily bridge the gap between a staff member leaving and someone new coming in. Some work is outsourced to professional services firms, particularly if it relates to initial public offering processes. Pay brackets for company secretaries are influenced by factors such as whether a business is listed, whether the company secretary has responsibility for the group or just the UK subsidiary, and whether they are also the general counsel. A deputy company secretary working for a general insurer typically earns around 70,000, rising to between 90,000 and 200,000 for company secretaries. The sole company secretary for a Lloyd s syndicate is likely to earn around 100,000, while at a brokerage they would be on between 70,000 and 100,000 depending on the size of the business. Bonuses tend to be larger for those who work for listed companies and they are related to the business s performance, but are usually in the region of 3-10%. Contractors earn between 200 and 500 per day on average. At the start of 2014, most of the hiring was for junior company secretarial staff as more senior employees were concentrating on year end activity, preparing for their business s annual report and annual general meeting. We expect to see more senior hiring take place as 2014 progresses with recruitment into junior roles staying steady throughout the year. 10 Insurance Market Update 2014 Insurance Market Update

8 Marketing & Communications A focus on customer insight means that marketers with expertise in analysing data will have their pick of roles. Marketing and communication professionals have come into the spotlight as insurers look to take advantage of better economic conditions. Hiring into both permanent and temporary positions was steady during 2013 with most recruitment carried out to replace staff who had left or been promoted. We noticed a shift towards the end of the year, however, with a number of new positions being created. This trend has continued into In the wake of the global financial crisis, insurers have shifted their focus to customer-targeted marketing. They want to see a return on their investment so expect marketing professionals to not only drive marketing campaigns, but also analyse data to determine the success of each campaign. While marketing professionals were traditionally prized for their softer skills and ability to understand the look and feel of a campaign, many of the new, permanent marketing roles require an aptitude for analytics and customer insight. For example, candidates need to be able to analyse the success of a click-through digital campaign and understand how much revenue it is generating for the business. Last year, insurers were focused on keeping costs down so most hiring was for junior roles such as marketing executive and customer insight analyst. They were also hiring into digital roles as they looked to engage with their customers online. We have seen more senior positions, including senior marketing manager and head of marketing, arise more frequently as 2014 has progressed. Insurers are now recognising that they need marketers who can make a strategic contribution to the marketing of the business as well as deliver individual campaigns. As a result of the improved economic climate, experienced marketers are less nervous about moving jobs, therefore opening up new opportunities for others. The nature of marketing is undoubtedly changing. Insurers now expect their marketers to have a combination of creative, digital and analytical skills. But there is a shortage of candidates who have all these skills. As a result, those with analytical experience are highly sought after and employers are willing to look outside insurance and financial services to attract candidates with the right skills. Meanwhile, established marketers are realising that they need to adapt to keep up with an increasingly digital and data-driven world. Demand for temporary staff has been steady over the past year and it has been biased towards communication roles, particularly at middle-management level. This is because many insurers have been undertaking large change projects and have needed to effectively communicate the changes taking place internally. On the whole, salaries have not moved much since last year although marketing professionals with analytical experience can secure a premium when they move roles. A marketing executive in insurance typically earns between 25,000 and 32,000, while a senior executive can command between 32,000 and 40,000. Marketing managers usually take home between 40,000 and 55,000 while a head of marketing can command a salary of 55,000 to 75,000. Temporary marketing contractors normally earn between 200 and 300 per day, with communications focused contractors seeking anything in the region of 500 per day. Given that demand for marketers with analytical expertise will only increase, insurers may have to pay higher salaries to attract the best talent. Already a marketing manager with analytical skills can expect to earn an average of 10% more than a manager with traditional soft skills. Contractors with analytical experience can also command an enhanced day rate of between 300 and 500. Insurers are growing their marketing teams during 2014 as they look to take advantage of a period of growth. They are particularly seeking out marketers with analytical skills. We expect that marketers who have a good mix of traditional marketing and analytical skills will find that doors open for them this year and next. Procurement Procurement is becoming more prominent thanks to its role in driving efficiencies and managing supplier relationships. Procurement is an emerging force in the insurance sector. Since 2008 demand for procurement professionals has steadily risen and the profession continues to grow in prominence. Due to the scale of their spend, large general and life insurance companies are hiring in the greatest numbers, although medium-sized businesses are also setting up their own procurement departments to have more control over spend. During the recession, insurers were focused on cost efficiency and reducing spending, so they turned to procurement professionals to cut suppliers costs and boost the bottom line. This is still the case in many organisations. However, there is now a large emphasis on getting the maximum value out of a contract over the duration of its term, which has reinforced procurements role as a supplier relationship manager. Larger insurers are setting up vendor management teams to control contracts and ensure that suppliers are meeting their key performance indicators. A further development is the heightened importance of risk and governance. Insurers rely on their procurement teams to carry out thorough due diligence on their suppliers and ensure that they pose minimum risk to the business. When hiring, employers look for those with category knowledge, relationship management skills and a good understanding of the full procurement life cycle, from sending out requests for information through to tendering, renewal and completion. In larger insurance companies that have high IT spend, professionals with technology procurement experience are sought after. Smaller companies prefer procurement generalists who can manage suppliers in a range of categories including HR, IT, marketing, professional services and travel. The prospect of economic growth in 2014 led many insurers to create new permanent procurement roles, seeing these as a way to ensure continuity with stakeholders and suppliers. In particular, employers seek analysts and sourcing managers who can drive efficiency and assess where savings can be made. While there was less demand for interim procurement staff than permanent employees at the start of 2014, we have seen this change as the year unfolds. Employers will turn to interim professionals as workloads increase, new projects launch or they struggle to fill permanent positions. In particular, the opportunities for senior interims are set to rise during 2014, as insurers seek experienced managers who can make an instant impact or set up procurement functions from scratch. Salaries in procurement have edged up compared with last year and are expected to stay stable during Middle managers typically earn salaries of 55,000 to 65,000 with a bonus of 10-20%, whilst senior procurement professionals can command 65,000 and above. Interim contractors secure day rates of depending on their experience with senior contractors taking home even more. We believe that the outlook for the remainder of 2014 and beyond is positive. Larger insurers will continue to expand their procurement functions as they look to drive efficiency and centralise spending while smaller ones will set them up. Meanwhile, the importance of relationship management with suppliers and the increased prominence of risk and governance are further emphasising the indispensability of procurement within insurance. Project & Change Management Project and change management experts are key to insurers integration and transformation programmes in After a relatively quiet year in 2013, the recruitment market for project and change management got off to a strong start in 2014, when several insurers rolled out large-scale transformation programmes. Insurers are investing in new IT systems and more efficient operational processes so that they can capitalise on economic growth. Inevitably they need experts to oversee these transformations, resulting in an increase in hiring. Last year was marked by a high number of acquisitions within the insurance industry so 2014 is showing itself to be a year of consolidation as newly acquired entities are absorbed into their parent company. Businesses right across the insurance industry are trying to achieve greater efficiency and integration. They also want to see better management information (MI) and more effective use of the data that they hold. So they are focused on improving operations, streamlining processes and merging functions. They are also investigating how they can migrate data between the different IT systems. Meanwhile, brokers are investing in managing agents to look after parts of their business and these agents need the help of project and change experts to set up their IT systems. Given employers requirements, it is not surprising that change professionals with MI and Big Data knowledge are highly sought after, as are those with experience of merger programmes and strategy experts with a background in transformation. These individuals should find that their skills remain in high demand throughout 2014 as more projects are launched. Much of the recruitment activity taking place is to fill business analyst and project management positions. There is also some demand for organisational design specialists where new projects are being launched. Employers expect change professionals to be dynamic individuals with a proven track record and good relationship management and communication skills. They also prefer those with an insurance background. In 2013, insurers were cost-conscious and this led to them favouring permanent change staff above contractors. Although we expect this preference to continue, the increase in the number of projects taking place means that more contract roles are likely to be available this year, with temporary hiring mostly being led by the larger insurance companies. Over the past year, salaries have stayed fairly constant with candidates moving roles for experience rather than a pay rise. Business analysts typically take home between 40,000 and 80,000, with project managers earning 45,000 to 90,000 and programme managers commanding 70,000 to 140,000. Bonuses are in the region of 10-20% on top of basic pay. Day rates for contractors range from 300 to 600 for business analysts, rising to 400 to 750 for project managers, and 600 to 1,500 for programme managers. We expect to see increased demand for permanent and temporary project and change professionals throughout 2014 and into We believe that demand for contractors will be significantly greater than last year due to the number of projects being launched and insurers needing to act quickly to secure the services of capable people with a strong background in delivery. It is likely that as projects become more advanced, insurers will need to invest in change experts who specialise in learning and development. In previous years, the Solvency II directive has driven hiring in projects and change. We may see that it further influences recruitment later in 2014 as organisations actively prepare for its implementation in January Insurance Market Update 2014 Insurance Market Update

9 Risk Operational and credit risk professionals are charged with ensuring that insurance businesses are fully compliant and not under threat. Operational risk Once risk teams were largely focused on compliance with conduct regulation, but now large general and life insurers are going to significant lengths to improve their operational risk processes. They need professionals to ensure that employees keep to the appropriate procedures and guidelines throughout the end-to-end business process from the initial customer enquiry, through risk assessment, to deciding what the final premium should be. We have also noticed this trend among mid-tier businesses and some smaller, specialist insurers, who are recruiting their own in-house operational risk specialists to set up suitable frameworks for internal control. In particular, employers have been hiring heads of operational risk, operational risk analysts and enterprise risk managers. Operational risk professionals are expected to have to have demonstrable expertise and a sound understanding of risk methodology. They also need strong interpersonal skills to ensure that new processes and controls are actually implemented. Therefore, candidates with substantial experience are sought after. Credit risk Credit risk is another major focus area for insurers since their finances are under scrutiny from the newly formed Prudential Regulation Authority (PRA). The PRA wants to understand how insurers calculate their risks from a credit and capital perspective. Large general and life insurers in London are therefore investing in credit risk experts who can help them to better understand their credit risk and improve centralised credit portfolio analytics. There is also some demand for in-house credit teams within brokerages and the Lloyd s market. We have seen this focus on credit risk lead to increased hiring of quantitative risk analysts, financial risk engineers and credit portfolio analytics managers. It is essential for credit risk professionals to have technical expertise. Interviews are highly technical and candidates must usually demonstrate practical modelling skills and a working knowledge of algorithmics. They are expected to have a Masters degree or PhD in a financial or mathematical discipline as well as industry experience. There is a significant shortage of credit risk professionals with a background in insurance. Therefore, employers will consider individuals who have worked in investment banking or risk consultants with experience of advising clients in the insurance sector. We also believe that employers need to be open to sponsoring credit risk professionals from overseas, especially from mainland Europe and Asia. Large general and life insurers in London are investing in credit risk experts who can help them to better understand their credit risk and improve centralised credit portfolio analytics. In the Midlands and the North, credit risk analyst teams are less focused on capital requirements and more on the trade credit risks posed by customers. This is a result of the engineering, manufacturing and professional services sectors picking up in response to the economic recovery. Demand for credit risk professionals is therefore higher than it was last year. Other roles in risk Hiring into regulatory risk roles in London remains steady with an increase in recruitment to support implementation of the Solvency II directive, which we expect to continue over the coming year. In the Midlands and the North, roles are also arising for risk engineers and surveyors to support underwriters in areas such as cyber risk, property risk and employer liability risk. In operational risk, the hiring market is geared towards permanent roles as organisations look for those who can bring stability and continuity to the business. In credit risk, the shortage of candidates looking for permanent roles means that the temporary market is very busy in London. A number of credit technicians based in the capital choose to work on a contract basis because they can command high day rates. However, there is little demand for risk contractors elsewhere in the UK. Salaries have risen since 2013, but are likely to level off over the next couple of years. An operational risk manager typically earns between 60,000 and 90,000 and receives a bonus of between 10% and 30%. A credit risk manager can command between 60,000 and 120,000 with a bonus of between 20% and 70%. In the North and the Midlands, a credit risk manager can expect to earn around 25,000 to 40,000. Operational risk contractors are on day rates of around 400 to 550 while a credit risk contractor can command 500 to 800 per day. Credit portfolio analytics will remain a growth area throughout this year and into next. Insurers will continue to expand their credit risk teams, which will result in a steady stream of new roles. Hiring into operational risk and regulatory risk roles is likely to remain steady as employers largely confine themselves to replacement hires. Tax The growing shortage of tax professionals will drive up the salaries and rates that organisations can expect to pay for their services. Insurance is big business, so the sector has a constant demand for the services of tax professionals. Nevertheless, employers have been very cost-conscious in the wake of the global financial crisis. Some have made redundancies over the past few years, while others have not replaced leavers. However, since the start of 2014, there is a willingness to invest in tax functions, opening up roles in a broad range of businesses, from multinationals through to niche insurance providers. Now that the industry is under greater scrutiny from HM Revenue & Customs, insurance companies are placing greater focus on tax compliance. They seek tax controllers who can bridge the gap between the accounting and tax functions of their organisation and ensure that accurate figures are being entered into IT systems so that the final tax returns are correct. The most sought after individuals at the moment are those with a broad financial background that encompasses tax and accounting as well as systems experience. Insurers are also investing in VAT and operational tax roles since they believe that they can make savings through the way in which they comply with these taxes. The scale of their operations means it is the large general insurers that are hiring most corporate tax and VAT experts at present, although there is increased demand from brokers and the Lloyd s market. Thanks to signs of economic recovery, there is now more international movement of personnel. This is drawing investment in expatriate taxation experts, who can advise on areas such as international tax treaties, benefits packages and withholding tax issues. Insurance companies are also hiring employment tax professionals to assist with the implementation of employee share schemes and deferred bonus schemes. Employers tend to favour newly-qualified and post-qualified professionals with up to five years compliance experience because they are technically knowledgeable yet cost-effective. Candidates are expected to have analytical and communication skills, commercial awareness, IT systems knowledge and an ability to manage relationships. We are already seeing a shortage of tax professionals, particularly at the one to three year post-qualified level because the Big 4 professional services firms scaled back their graduate training schemes during the economic downturn. Competition for the best talent is fierce and employers must look outside insurance in order to attract the strongest individuals. They are also competing with the Big 4 themselves, who are using counter offers in a bid to retain their best staff. Until now, it has been hard for tax experts to move between the different sectors of insurance i.e. from a general insurer to the Lloyd s market but this could change if the candidate shortage intensifies. Salaries have not shifted much since last year, but some employers will offer a pay rise of 10-15% to tempt a good candidate to move or as much as 25% if it s a business-critical role. In-house tax managers typically earn between 55,000 and 65,000, while mid-level contractors secure day rates of between 300 and 400. If the candidate shortage continues throughout 2014 as expected, salaries will rise. We believe that in-house tax managers may be earning 60,000 to 65,000 on average by the end of this year. Bonuses are normally a further 15-20% on top of base salary. Employers are leaning towards making permanent hires since they prefer the stability that employees on the payroll provide. Permanent staff members are also more cost-effective than using contractors or outsourcing work to the Big 4. Therefore the market for interim professionals is likely to remain flat throughout the coming year. But the larger insurers are likely to increase the headcount of in-house tax departments to take the pressure off busy teams and to handle additional projects, such as mergers and acquisitions. Some smaller businesses will also set up in-house tax departments for the first time and the Big 4 will continue to recruit so that they can serve their clients in a period of growth. We predict that the market for tax professionals will grow busier as 2014 progresses. 14 Insurance Market Update 2014 Insurance Market Update

10 Technology Advances in business intelligence and mobile strategies are driving demand for the skills of technology professionals. Underwriting Hiring into underwriting is stable and insurers are investing in niche lines of business and development roles. We have seen demand for both permanent and contract technology professionals rise sharply since the start of Employers from right across the insurance sector are investing in business information (BI) and mobile systems, as they see these as strategically important and key to driving growth. This trend is set to strengthen as the year progresses. Between October 2013 and March 2014, we saw business intelligence, analytical and insight roles double as insurance businesses invested in technology professionals to give them a marketing edge. IT is being fully integrated into operations and is an important driver of strategy, so employers lean towards hiring permanent staff members who can make a long-term contribution to the business. Insurers and brokers want to hire technology professionals who are both technically capable and possess strong communication skills, so that they can effectively bridge the gap between IT and the wider business. Since BI and mobile technology skills are niche, they are highly sought after. Employers will therefore consider candidates from outside insurance, from a background such as banking or professional services. They are particularly looking for experience of driving change and developing IT applications that are businessfriendly and relevant. During 2012 and 2013, there was a shortage of candidates for permanent technology roles within insurance, so contractors were used in greater numbers to fill the gaps. This year, improved economic conditions mean that technology professionals are more interested in seeking out other opportunities, which is creating movement in the market. While employers are still predominantly looking for permanent staff, the candidate shortage means that the need for contractors remains, particularly to work in specialised areas such as BI and mobile development. Permanent salaries for technology professionals have increased by around 5-10% over the past year and some employers have been prepared to pay a premium to attract the best. Individuals can typically secure a pay rise of between 10% and 20% if they move roles. A technology developer normally earns between 50,000 and 85,000 depending on experience, with the biggest pay packets reserved for those professionals who have industry experience and can drive business change. Temporary contractors take home between 350 and 700 per day depending on their expertise. We predict that salaries for both permanent and temporary roles will continue to rise due to competition for the best candidates. Thanks to the economic recovery, the remainder of 2014 should be buoyant in recruitment for technology professionals as demand for candidates with mobile and BI experience continues to grow. Employers from right across the insurance sector are investing in business information and mobile systems, as they see these as strategically important and key to driving growth. Uncertainty in the wake of the economic downturn continues to affect demand for underwriters. Within Lloyd s of London, recruitment is usually stable, but there are occasional blips due to wider market conditions or natural catastrophes. The energy, marine and property insurance markets have all recently suffered from catastrophe-related losses, so underwriters for those lines of business have been cautious about moving jobs, which has caused a slowdown in hiring. Also, syndicates with significant professional and financial lines of business were badly affected by the global financial crisis, with some major players bearing large losses to their portfolios as a result. Many established underwriters both inside and outside of Lloyd s are reducing their risk exposure by moving away from primary underwriting to writing further up insurance programmes. Among life insurers and general insurers, recruitment of underwriters tends to be more fluid, particularly at more junior levels, since the skills required are less specialised than within Lloyd s. Nevertheless it is likely that the bad weather conditions in the UK over the winter will impact underwriter hiring among general insurers since they will have incurred large losses. In the Home Counties and the South, there is steady demand for commercial underwriters to underwrite combined policies. Often employers will be replacing professionals who have moved on to a specialist role with Lloyd s of London. Insurers in the area are also investing in junior underwriting jobs as they look to grow. In the Midlands and the North, general insurers are creating a steady stream of underwriting roles, particularly in the casualty, motor, professional and financial lines. However, there is a shortage of candidates to fill the more senior roles. This is especially pronounced in Birmingham where some large insurers are trying to expand their presence. In general, the majority of underwriting jobs that become available are at a mid to senior level. Within Lloyd s, underwriters are highly specialised and may not be actively looking for a new job so they often need to be approached. Insurers are also seeking out development underwriters, who can help to grow books of business. An assistant underwriter with underwriting authority at Lloyd s of London may earn between 35,000 and 60,000 while an underwriter can command between 90,000 and 120,000. Bonuses are in the region of 15-30% depending on the performance of the syndicate. An assistant underwriter who works for a general insurer in London would take home between 45,000 and 55,000 while an underwriter would be on between 80,000 and 100,000, with both getting a bonus of up to 20%. In the Home Counties and the South, trainee underwriters secure between 20,000 and 25,000 while underwriters earn up to 50,000, and both get a discretionary bonus. In the Midlands and the North, an assistant underwriter is likely to earn 16,000 to 20,000 depending on the nature of the role while a senior underwriter would be on 35,000 to 60,000. Bonuses are 10% of basic salary upwards, depending on company performance. We expect to see the cyber liability line continue to grow during the remainder of 2014, creating jobs for underwriters. More roles should also become available within professional and financial lines and there is likely to be some recovery in core lines such as energy, marine and property as insurers adjust their underwriting strategies. Furthermore, niche products are always being created, which will create demand for underwriters to support them. There are some noticeable areas of growth in underwriting that are stimulating hiring. Within the Lloyd s market and London more generally, there is expansion again within the professional and financial lines of business due to the economic recovery taking hold. Underwriters with knowledge of banker bond insurance, director and officer liability insurance, and professional indemnity insurance are sought after. Meanwhile, cyber liability is a growing line of business due to the increasing threat posed by cyber crime, and changing demographic trends make accident and health another important source of income. Outside London, commercial property has been a growth area for insurers, although the floods over the winter could prove a setback in the short term. Many established underwriters both inside and outside of Lloyd s are reducing their risk exposure by moving away from primary underwriting to writing further up insurance programmes. 16 Insurance Market Update 2014 Insurance Market Update

11 CONCLUSION The insurance sector is focused on taking advantage of growth during Building strong relationships with customers and winning new business is core to that strategy, so employers are willing to invest in the people, processes and technologies that can set them apart from their competitors. While insurers are mostly making replacement hires, they are also creating new roles in key areas with the aim of generating greater profits and driving their businesses forward. This, in turn, should lead to further hiring activity. Particular areas where insurers are directing their attention include customer-targeted marketing and data analytics roles. They are also recruiting change and technology professionals to manage the transition into economic growth. Regulation continues to be a key focus and company secretarial and audit professionals remain crucial to governing compliance as insurance businesses grow, while operational and credit risk professionals continue to play an important role in managing future threats. With the implementation of Solvency II on the horizon, demand for actuaries is once again coming to the fore. At Hays, we expect to see greater movement in the recruitment market as the year continues. 18 Insurance Market Update 2014 Insurance Market Update