Nearly a quarter of UK insurers say talent shortage is top business challenge

Nearly a quarter of UK insurers (22%) have identified talent attraction and retention as the top business challenge in 2026.

This is according to Gallagher Bassett’s ’The Carrier Perspective: 2026 Claims Insights’  report,  which  showed that the talent shortage issue has become larger after ranking seventh as UK insurers’ top business challenges last year.

The report, which surveyed 250 senior insurance leaders across the UK, Australia and North America, revealed that 72% of UK survey respondents reported an increased difficulty in finding qualified candidates.

Meanwhile, 48% of respondents reported that claims management and adjusting are facing the most acute shortages.

Sarah Penny, client services director at Gallagher Bassett, said: “With claims becoming more complex, the demand for more specialised expertise is higher than ever before, limiting entry pathways into the insurance sector for graduate or less-experienced workers.

”Not only does this demand for expertise increase challenges in attracting new talent, it also puts more reliance on the existing workforce. 

”As a result, the retirement of experienced and qualified handlers is having a greater impact, causing a recurrent loss of expertise and technical experience without an adequate plan for succession.

“Replacing expertise is far harder than replacing headcount. New hires require longer ramp up periods, placing sustained pressure on already stretched teams.”

Shifting retention strategies

The report also highlighted that UK insurers are shifting retention strategies, prioritising investment in training and development over raising wages and bonuses.

It revealed that 58% of survey respondents are enhancing employee benefits and 48% are offering higher wages or bonuses.

In addition, the survey showcased increased popularity towards hybrid work models as 63% cited it as their preferred structure.

Penny added: “When it comes to flexible working arrangements, hybrid work models have become a baseline expectation for attracting talent.

”In addition to this model’s significant upsides — like increased productivity and reduced costs — hybrid working enables organisations to access a wider talent pool geographically, creating more opportunities for hiring quality talent. The increased focus on nurturing talent is a positive for our industry.”