Part 1: Professional Insights ANZIIF SEMINAR | Hiring in 2023 Overcoming Talent Shortages with Madeleine Martin

The General Insurance Industry in Australia is facing a significant challenge as the availability of talent continues to dwindle. As the National Manager of Insurance and Wealth Management at Fuse Recruitment, I had the privilege of speaking at the ANZIIF Seminar Hiring in 2023. Drawing on my extensive experience, I shared my opinion on the topic, providing insights into how the industry can overcome talent shortages.

During the seminar, I was able to explore the challenges facing the General Insurance Industry and delve deeper into the strategies that can be employed to attract and retain top talent in this competitive landscape.

In the realm of insurance, talent shortages have been an ongoing concern for years. Now, the situation has been exacerbated by the pandemic, low net migration, and an aging workforce. As I recently highlighted during my presentation, the insurance industry in Australia has been struggling to find experienced candidates for quite some time. Even pre-pandemic, there were significant challenges in sourcing top talent and filling vacancies. In this article, we’ll explore the various factors contributing to the talent shortage and identify potential solutions for the industry’s long-standing problem.

In recent times, Australia has witnessed a historic low in unemployment rates, with the current rate standing at 3.5%, one of the lowest recorded in the past 50 years. This has created significant challenges for many industries, including insurance and wealth management. With an insufficient pool of job seekers, there are more job vacancies than candidates to fill them. However, as I highlighted during my presentation, there is a glimmer of hope on the horizon. The Reserve Bank predicts a gradual increase in the unemployment rate, with projections forecasting a rise to 4.5% by mid-2025. In this article, we’ll examine the impact of low unemployment rates on the insurance industry and explore how the projected changes in the job market may alleviate the situation.

The lack of international talent due to low net migration has worsened the talent shortage in the insurance industry, which heavily relies on overseas talent. However, the situation may improve in 2023, with predictions indicating that Australia will exceed the strong net migration rates observed between 2007 and 2020. This forecast could spell good news for the insurance industry, as the industry may once again be able to tap into the global talent pool to fill its critical vacancies.

The aging workforce is another critical factor contributing to the talent shortage in the insurance industry. As many experienced industry professionals are retiring, they are taking with them their skills and knowledge, leaving a gap in senior and highly technical roles. The lack of industry awareness among school leavers and graduates further compounds the problem. As a result, there are limited candidates with the specialised expertise and knowledge required to fill these critical roles. In my experience of working with Graduates at Fuse Recruitment, many candidates with degrees that align well to a career in Insurance are simply unaware that Insurance Careers can be extremely varied, and the pathways are quite vast.

Despite the challenges, the insurance and wealth management industry in Australia continues to experience significant growth, with a 12.2% increase in job vacancies this year alone. While the pandemic did have an impact on the industry, it has since recovered to pre-pandemic levels. As the industry struggles to bridge the gap left by retiring professionals, the pool of younger graduates to fill their roles is rapidly shrinking. It is crucial to raise industry awareness among school leavers and graduates to bridge the talent gap left by retiring professionals.

While the talent shortages in the insurance and wealth management industry in Australia pose significant challenges for employers seeking to attract and retain top talent, I remain optimistic about the industry’s future. The industry’s recovery to pre-pandemic levels and continued growth signal a bright future, and the predicted increase in job vacancies provides hope for the industry’s future.

If you would like to discuss the challenges of hiring and retaining top talent in the insurance and wealth management industry further, please feel free to contact me through Fuse Recruitment.