Insurance companies pay higher bonuses

Insurance companies paid higher bonuses in the first quarter of the year – but most cut back on new staff hires.

Most industry professionals received a bonus of 8% to 15% of their salaries at the end of Q1 – up from 5% to 10% last year – according to a report by specialist recruiter Robert Walters. And the strongest performing underwriters received as much as 40%.

But Robert Walters said the recruitment market had slowed down in the first half of the year. Associate director Adam Whitehouse said: “It seems senior levels candidates are reluctant to explore their options and employers alike are utilising pay increases and stretching out bonus periods in an effort to retain key members of staff.”

The most active hirers were in the Lloyd’s market, due to a strong performance last year and lack of major natural disasters in the first half of the year, and UK general insurers that are preparing for or have recently completed an IPO and face increased regulatory requirements.

The insurance sector continues to outperform most parts of UK financial services, the report said.

Robert Walters said fierce competition to hire lead to a shortage of skilled staff with regulatory and technical expertise. There is also strong demand for fully or part-qualified actuaries, internal auditors and junior underwriters, but there is a skills shortage for risk professionals and specialist accountants with technical insurance experience.

But the demand for contractors (who can earn between £175 and £450 a day) has decreased, due to the continued delay of the solvency II deadline, as insurers generally now either have the foundation infrastructure systems in place or mapped out.