The Australian insurance industry is facing an intensifying shortage of skilled professionals, with the gap now being felt across underwriting, broking and claims, according to a report in Insurance Business Magazine.
For many firms, the issue is no longer confined to recruitment teams; it is increasingly being recognised as a strategic threat to growth, customer service and operational resilience.
The Insurance Council of Australia (ICA) has warned that nearly 30 per cent of the current workforce will be at retirement age by 2030. Insurance Business Magazine reports that in practice, that reality is already here.
The talent shortage is being felt across multiple areas of broking and is becoming a very real industry concern. This demographic shift, combined with rising customer expectations and increased regulatory scrutiny, is intensifying pressure on brokers and exposing acute shortages in different areas of the profession.
There are claims management teams across the sector are also feeling the pressure because of increasing volumes, more complex claims and the evolving nature of risks.
The report says underwriting has become a pressure point as well, particularly in property, cyber and professional lines. As risk profiles evolve with climate change, cybercrime and supply chain vulnerabilities, employers are seeking professionals who can combine deep insurance knowledge with data analytics and digital fluency. Yet according to a global whitepaper by Gallagher Bassett, 92 per cent of Australian insurers say a shrinking talent pool is already impairing their ability to manage claims and grow their businesses – well above the 72 per cent global average.
Industry bodies and firms are taking steps to respond. The ICA’s six-year workforce strategy includes university partnerships and a national branding campaign to reposition insurance as a career of choice. Individual insurers and brokerages are investing in mentorship programs, hybrid working models and digital tools to ease workloads. Some are also pairing experienced staff with new recruits to safeguard knowledge transfer.
But despite these efforts, the scale of the problem suggests that talent will remain a defining challenge well into the 2030s. With an ageing workforce and heightened customer expectations, the industry must not treat recruitment and retention as an HR function alone. For brokers, underwriters and claims leaders alike, it is now a board-level priority that will shape competitiveness and resilience for years to come.
The full article can be found here