Part 2: Statistical Insights ANZIIF SEMINAR | Hiring in 2023 Overcoming Talent Shortages with Madeleine Martin

In the ever-evolving landscape of the Australian insurance industry, the issue
of talent shortages looms large. As Fuse Recruitment’s National Manager of Insurance and Wealth, I had
the opportunity to address this issue at the recent ANZIIF Seminar on Hiring in 2023. During my
presentation, I provided valuable insights on the driving factors behind the current talent shortages
and discussed the challenges faced by employers in today’s competitive job market.

One of the primary contributors to the talent shortages in the insurance industry
is the low unemployment rate prevailing in Australia. According to the Australian Bureau of Statistics
report of March 2023, the country’s unemployment rate stands at a meager 3.5%, a level that has not been
witnessed in the past fifty years. Moreover, the rate has remained below 4% for the last year.
Nonetheless, a gradual increase in the unemployment rate is predicted by the Reserve Bank, forecasting a
rise to 4.5% by mid-2025. This projection indicates that the talent shortage will gradually ease with
time, allowing for a corresponding increase in candidate availability as the country returns to
pre-pandemic normalcy.

The talent shortage in the insurance
industry has been significantly compounded by the effects of the pandemic on Australia’s net migration
rate. Over the period of 2007-2020, Australia averaged a net gain of 226,000 people per annum. The
insurance industry relied heavily on talent from international markets, with the UK and New Zealand
being prominent sources. However, 2020-2021 saw a net migration loss of 85,000 people, the second-lowest
recorded rate in Australia’s history. While the post-pandemic net migration rate has shown an upward
trend, the recovery remains slow and is yet to reach pre-pandemic levels. All though predictions are the
net migration rate in 2023 will exceed the robust rates observed between 2007-2020, enabling the
insurance industry to draw from overseas talent once more.

The
expansion of the insurance industry is a crucial factor contributing to the talent shortages experienced
in this sector. As reported, the market size has increased from $73.9bn in 2020 to an impressive $89.9bn
in 2023, representing a remarkable growth of 12.2% this year alone. However, the expansion of the
industry has led to a corresponding increase in job vacancies, further exacerbating the shortage of
skilled professionals.

While the start of the pandemic caused a significant decline
in Seek job advertisements for the insurance and superannuation industries, there has been a remarkable
recovery. Seek has reported that job ads in these sectors have almost returned to pre-pandemic levels.
With an estimated 20% of unfilled roles that remain unadvertised.

Despite these positive indicators, the industry is still facing challenges due to low
candidate availability, low net migration, and an aging workforce. While conditions are expected to
improve in the coming months, shortages for specialised roles that require experience and expertise are
likely to persist. It’s essential to keep these challenges in mind and take proactive steps to address
them. By doing so, employers in the insurance industry can position themselves to attract and retain the
best talent available.

If you’re interested in learning more
about the insights, I shared at the ANZIIF Seminar on overcoming talent shortages in the insurance
industry, you can find Part 1 of the seminar available on our blog now.

At Fuse, we pride ourselves on our commitment to staying at the forefront of the insurance and
wealth management industry. Our team of experienced specialists is fully equipped to provide you with
comprehensive support for your hiring and employment needs during this period of talent shortages. If
you require any assistance, we encourage you to contact us directly.