Salary Survey

THE RESPONDENTS

Respondents' position - age - length of service

How we compiled the data

The survey was limited to respondents in full-time employment working within the UK. In an attempt to represent the whole insurance industry, the survey was open to respondents from a wide range of insurance-related disciples.

The response options to a number of questions, including those related to salary and bonus, were intended to be minimally invasive. To this end predefined response ranges were provided. Responses were treated in the strictest of confidence.

Over 900 people completed the survey: with men dominating the replies at 73%. Sixty six per cent were in the categories 26-45 years old, 21% were between 46 and 55, 8% were between 56 and 65 and only 5% were under 25.

Brokers dominated at 43%, followed by 32% for insurers. Claims management companies accounted for 3%, with solicitors and loss adjustors accounting for 2% each. Lloyd's brokers and syndicates accounted for just 1% each.

Seventeen per cent of recipients are at chief executive level, another 16% were senior management, 34% middle management with 15% in the position of account executive and 9% were analysts.

London dominated the replies, with 21% of respondents being based in the City. Other breakdowns were made up of: 9% came from the North/North East, 7% from the West Midlands, 5% from Lancashire with the same percentage from Hampshire and Surrey. Four percent came from Scotland, 3% from Gloucestershire and 2% came from the East Midlands and Northern Island As with previous surveys, most respondents work in a small office. Twenty eight per cent work in an office with 24 people or less. But there is an equal split of 16% for those working in an office of 25-49, 50-99 and 100-249. Only 6% had staff between 500-999 but 8% had more than 1,000.

PAY & CONDITIONS

The average industry wage rose an impressive 11% from £36,190 last year to £40,242 this year. Fifty per cent of respondents make more than £30,000. One per cent received between £90,000 and £94,999 and 4% received more than £100,000 a year.

But the average salary has slumped for those under 25 while rising for everyone else. As in previous years the fat cats benefit while the paupers get poorer. Last year the under 25 group averaged £21,000, but this has dropped to £18,970.

The 26-35 category saw their salary rise 5% from £31,500 last year to £33,335 this year. The next age grouping 36 - 45 years saw a 13% rise from £41,200 to £47,450 this year. The 46-55 year group also saw a 9% rise from £45,675 to £49,775 as did the 56-65 years group which saw a 11% rise from £40,000 to £44,640.

The average by job followed this trend. The role of administrator fell from last year's average of £23,260 to £22,600 this year. Analysts saw a slight boost from £33,080 to £33,570 this year, while CEOs and managing directors saw a huge 18% increase from an average of £53,790 last year to £63,800 this year. Junior/account executives saw an increase from £23,470 to £27,830 this year. Like CEOs, middle management rose significantly seeing a 19% increase from £36,440 last year to £43,400 this year. And senior management also benefited handsomely growing 5% from £50,250 to £53,000. But risk managers incomes fell 8% from £40,380 to £37,500.

PAY & CONDITIONS

Bonuses

Bonuses revealed that 19% of respondents received a bonus of between £1,000 and £2,499 last year, 12% got a bonus between £2,500 and £3,999, with 7% getting a bonus between £4,000 and £5,499.

Worringly, 23% of respondents do not expect to get any bonus this year.

Although 17% did expect to get between £1,000 and £2,499 and 13% did hope for between £2,500 and £3,999.

Bonuses did increase across nearly all our job categories from last year.

Administrators saw an impressive 45% increase, rising from £1,010 to £1,470.

Although this didn't make up for their average fall in wages.

Chief executives and middle managers saw a 3% rise from £16,770 to £17,290 today - nearly as much as the poor administrator's actual wage. Junior/account executives saw an impressive 19% rise from £2,720 to £3,250 this year. Middle managers' bonuses rose 23% from £4,030 to £4,980.

Risk managers saw the best bonus rise of all: 69%, from £1,830 last year to £3,100 this year. And senior management saw a 6% rise from an average bonus last year of £7,500 to £7,950 this year. But for some reason analysts/consultants saw a 12% decrease, from £3,920 last year to £3,470 this.

As a result, when asked whether respondents current gross salary (that is, basic plus bonuses/directors' remunerations) is competitive versus the industry norm for their position, 39% said they "somewhat agree" added to the 11% for "strongly agree" means that half of respondents agree that their salary is in line with the industry norm.

Only 8% strongly disagree that their salary is competitive versus the industry.

Holidays and benefits

On holidays and annual leave an interesting picture is presented. While 47% are open to 20-25 days' holiday and 41% are entitled to 25-30 days, 14% take no holiday at all and 54% take only 1-5 days' holiday and 23% take 5-10 days' holiday. Only 3% take anything like the proper allocation of up to 25 days.

Lunch breaks and benefits

Respondents take very little lunch break with a mere 3% taking more than an hour, with the majority broken up between taking 20-30 minutes (20%) and 22% taking 50-60 minutes.

On company benefits, private medical cover tops the poll with 59% of respondents receiving the perk of health cover. A contributory pension scheme is the next most popular perk at 55%. Next comes a mobile phone at 46%, a dress-down policy at 45% then a car allowance and life assurance both at 44%. A non-contributory pension scheme comes in at 33%. A profit share scheme, a season ticket loan and stock/share options all get 28% each.

Lunch breaks and benefits

On appraisals, half said they had appraisals once a year, 29% twice a year, 4% three times a year and 5% have no appraisals during the year at all.

On salary reviews 94% of respondents have their salary reviewed once a year. And 4% say they never have them reviewed, and 2% twice a year.

TRAINING

On training and development respondents reveal that 14% of them receive no training at all. Over half - 53% - receive only between 1-5 days training and 23% get 5-10 days training.

A more shocking response came from the question: what is your main training requirement in order that you sustain your ongoing development? An amazing 10% say none. Thirty three per cent cited FSA regulation, 26% general on the job skills and 16% say people management, with IT skills and sales skills at 5% each.

HIGH & LOW POINTS

Attractions of job - personal development - lunch breaks - concerns

Personal development

A total of 45% of respondents saw personal development opportunities as being the most important feature of attracting them to their current job, with 16% saying people within the organisation and 15% stating job security. 10% cited basic salary.

Personal development opportunities is the main reason that keeps our respondents in their jobs with 25% highlighting it, 19% cited again job security, people within the organisation stands at 18% and 7% said none.

The response to how long respondents have been with their current employer is varied. Five per cent have been with their firm for less than a year, 23% for one to three years, 23% for three to five years, 22% for five to ten years and 10% on 10-15 years.

Redundancy

The industry is not worried about the fear of redundancy with 37% saying they are not worried at all and only 2% say they are extremely worried.

On stress at work respondents were not as happy. From a rating of stress as not a problem at one to a major issue at seven a total of 65% listed stress as a major concern rating it four and above.

MOVING JOBS

Moving on

Nearly half of our respondents (47%) have not been contacted by a headhunter or attempted to be headhunted in the last year. But 32% have been contacted once or twice in that period. And 70 % expect to be in the industry in five years' time, evidence of their commitment to the industry.

Experience and education

Our respondents are well experienced in the industry. A total of 70% have been in the industry for 10 years or more, with 15% in the industry more than 30 years. Only 1% have been in the industry less than a year.

They have a specific insurance related qualification with 61% having qualified for a specific qualification and contrary to the idea that many in the industry leave school and go straight into insurance, 39% in fact have a degree and 11% a postgraduate degree.

INDUSTRY ISSUES

Industry membership: On the question of the level of insurance qualifications, 53% of respondents are members of the CII with 15% members of Biba and 6% members of the IIB. Possibly the most worrying number is that 31% are not members of any industry body at all. Two per cent are members of the AIIB, 1% Airmic, 1% Alarm, 1% Cila and 1% Foil.

Industry issues: The feeling that FSA regulation has had a negative impact is revealed in our survey. Only 5% strongly agree that that FSA regulation has improved performance and 34% strongly agree that the FSA has increased their workload, with 53% strongly agreeing that the FSA has increased operating costs and 40% somewhat agree that FSA regulation has increased pressure on premiums.

Seventeen per cent of respondents say they are using more capacity from Lloyd's than last year and only 9% are using more overseas capacity such as Gibraltar.

Over the coming year, 34% of brokers are not worried at all that insurers will poach clients for their direct businesses, but 10% are extremely worried of an increased workload over the coming year.