Martyn Mathews: Why education is vital to reinvigorating the insurance industry

Fewer than one in five UK children report ever having learned about insurance in school, an oversight which is leaving a large gap in young adults’ financial literacy and potentially exacerbating the skills-gap issues seen in the industry.

This is according to a new whitepaper – published yesterday (10 September 2025) by insurance software provider SPP –entitled Insurance uncovered: Why financial literacy must include insurance education for the next generation.

The data behind the whitepaper comes from a survey of 1,000 children aged 12 to 16, conducted between 16 and 19 June 2025.

And while the figures may make uncomfortable reading for an industry currently experiencing a skills gap, Martyn Mathews, managing director at SSP Broker, explains how education can provide a glimmer of hope.

He says: “Insurance is a force for good in a functioning society and adds huge value to the economy – £35bn or so – but fewer than one in five kids learn about the industry in school.

“However, according to the report, 69% of students said they would consider a career in insurance once they had heard about it. But only 18% get to hear about it – there’s a clear mismatch there.

“When you overlay the skills gap that we have in insurance, it makes perfect sense to call for a collaboration across the industry itself, to come together to do something about it. It really highlights the need to spend more time educating youngsters.”

Talent crunch

Beyond education, Mathews believes a perception shift of the industry is needed to avoid the talent gap becoming a talent crunch.

Indeed, figures from specialist insurer Ecclesiastical highlight the breadth of the issue, with some 64% of brokers reporting that recruiting young talent is a key strategic challenge for their business.

Furthermore, some 50% of London market professionals are over 40 years of age, with 26% over 50.

Highlighting the prevalence of data, analytics and cutting-edge technology offers a route to renewing interest among young professionals.

Mathews explains: “[We need to] get people excited about the impact that new technology can have on all industries, but in particular insurance.

“For example, driverless cars can only exist by way of insurance. And there are huge volumes of data [to work with] – its big data personified. By bringing that forward, we can do a lot to stave off the threat of a talent shortage.

“When you start talking about data in insurance terms, and perhaps bring it to life by way of stories, it totally changes the perception of it.”

Industry collaboration

Educating school-age children has the potential to benefit the industry and, by extension, the economy, in more ways than just plugging the skills gap.

“There’s a second piece to this as well, that’s really important,” continues Mathews.

“There are other benefits, such as understanding that soft insurance fraud isn’t a victimless crime. There are people that talk about inflating an insurance claim, but until they understand the mechanics of insurance, why it’s important that people are truthful and what it is insurance is trying to do, we won’t see a reduction in it.

“Transparency is another key word. Transparency leads to trust and, the more we have of that, the more the industry will grow. Ultimately, that trust then leads to a better perception of this great industry we work in.”

Mathews, who regularly visits schools to educate young adults on the industry and teach professional skills, suggests a combination of curricular learning and industry initiative is the answer.

He finishes: “Ultimately, education around insurance should be in the curriculum in the same way that financial literacy is. That would be the ultimate goal.

“But there are steps towards that as well, collaboration from the industry to have a greater presence in schools, talking to students, explaining about insurance.

“We can collaborate an industry to make sure we have the maximum impact and benefit.”