Addressing the Insurance Talent Gap – How to Tackle the Finance Talent Shortage

The shortage of finance talent in the insurance sector has become more pronounced over the past year.

According to Skills England, finance and accounting roles are now among the top ten most critically in-demand occupations in the UK. There are about 994,000 workers in occupations in demand, which is ~69.4% of that industry’s workforce. A rise in open finance roles may be driven by a combination of regulatory pressure, digital transformation, and shifting workforce expectations.

One of the key challenges is competition. Insurance firms are no longer just competing for talent within their industry. They’re also up against FinTech's, consultancies, and tech companies that often offer more flexible working arrangements and faster career progression. Hybrid working has become a baseline expectation, and younger professionals are increasingly prioritising purpose, wellbeing, and development opportunities over traditional benefits.

These factors have created a talent landscape where insurance firms find it harder to attract and retain finance professionals, especially in roles that require both technical expertise and sector-specific knowledge.

While the shortage affects the entire finance function, certain roles are proving particularly difficult to fill.

Compliance and Risk Analysts

Compliance and Risk Analysts are in high demand due to increasing regulatory complexity. Insurance firms must navigate frameworks like Solvency II and IFRS 17, which require specialised knowledge. However, candidates with both regulatory expertise and insurance experience are scarce, and many are drawn to consulting roles that offer broader exposure and more flexibility.

In the insurance sector, risk-role vacancies have risen by ~11.4% year on year (nationally) per Vacancysoft’s “Risk – Insurance, UK Labour Market Trends, April 2024” report.

Financial Systems and Data Analysts

Financial Systems and Data Analysts are also in short supply. As insurers modernise legacy systems and adopt new technologies, they need professionals who can bridge finance and IT. Experience with platforms such as Oracle, SAP, and Workday is highly sought after, but the available talent pool is limited. Without internal expertise, firms risk delays and inefficiencies in transformation projects.

Nearly half (44%) of UK general insurance brokers believe the regulatory environment is “too restrictive,” especially smaller firms lacking dedicated compliance teams.

Qualified Accountants and FP&A Professionals

Qualified Accountants and FP&A Professionals face high turnover rates. The qualification process is lengthy, and many newly qualified professionals are choosing roles in tech or boutique finance firms. These sectors often offer faster progression, hybrid working, and more dynamic environments, making it difficult for insurance firms to compete.

The shortage reflects deeper structural issues within the insurance sector that have developed over time.

One major factor is the ageing workforce. Many experienced finance professionals are approaching retirement, and succession planning has not kept pace. This creates gaps in leadership and institutional knowledge that are difficult to fill quickly. The Insurance Times reports that about half of the people working in the London Market are aged over 40, and 26% of workers in the UK insurance market are aged over 50.

Another issue is the lack of investment in early-career development. Few insurance firms offer structured graduate schemes or apprenticeships focused on finance. Partnerships with universities and professional bodies are underutilised, which limits the flow of new talent into the sector. The insurance industry remains locked in a battle to recruit the next generation. Graduate schemes cannot be the only talent attraction tool. (Insurance Times)

Internal mobility is also a challenge. Finance professionals often find themselves in static roles with limited visibility of career progression. Without clear pathways, many opt to leave rather than grow within the organisation.

Finally, there is a perception problem. Insurance is often seen as less dynamic than fintech or consulting, which affects employer branding. Younger professionals are looking for innovation, purpose, and flexibility. Only 4% of young people want to follow a career in insurance, according to a CII finding.

HR can be a significant driver in closing the talent gap and can do so by employing technology at every stage.

Build a Future-Ready Talent Pipeline

To address long-term workforce needs, it’s beneficial to strengthen their early-career recruitment strategies. Partnering with universities and professional bodies can help attract graduates and apprentices into finance roles and offering industry placements. These relationships create visibility for careers in insurance finance and help build a steady flow of new talent. For more on how to support early-career professionals in today’s hybrid working environment, read our blog on helping early-career employees thrive.

Structured graduate schemes and finance apprenticeships provide rotational experience, mentorship, and clear development pathways. When supported by branded career sites that showcase purpose-driven roles and progression opportunities, these programmes can significantly improve engagement and retention among early-career professionals.

Invest in Talent Management Technology

Modern HR platforms are essential for managing finance talent at scale. Systems like Access PeopleXD Evo offer real-time analytics to identify skills gaps, automate succession planning, and support internal mobility.

These tools allow HR teams to make informed decisions and align workforce planning with business strategy.
Embedded AI features can flag retention risks and recommend tailored development pathways for individual employees. By centralising data and streamlining HR processes, technology enables insurance firms to move from reactive hiring to proactive talent management, improving both efficiency and outcomes.

“You need to get on board now because the rate of change is happening so quickly. If you can embrace AI now, you can deliver those employee experiences, save your time, and spend it on the things that really matter — while also delivering on your organisation’s objectives. For years, AI has been overhyped, but we’re now at a tipping point. It started in the consumer world and is now filtering into business. If you get on board with it now, you'd be amazed at how much time it can free up. It can simplify your life, outsource low-value admin, and help HR teams focus on what really matters - people.”

Oli Quayle, AI Evangelist at The Access Group in Episode 1 of Do the Best Work of Your Life

Rethink Employer Value Proposition

To attract and retain finance professionals, insurance firms would find it beneficial to evolve their employer value proposition. Flexibility, wellbeing, and purpose are increasingly important to candidates, particularly younger generations. Recruitment messaging should reflect these priorities and highlight the organisation’s commitment to inclusive culture and career development.

Sharing employee stories and showcasing real experiences can help humanise the brand and build trust with potential hires. A strong EVP not only improves recruitment outcomes but also strengthens engagement and loyalty among existing staff, contributing to long-term workforce stability.

For HR teams looking to refine their EVP, we have a free EVP template to help structure messaging around what matters most to employees. Additionally, our blog on EVP examples provides practical inspiration for showcasing culture, values, and career growth in a competitive talent market.

Upskill from Within

Upskilling existing employees is a cost-effective way to address talent shortages and prepare for future demands. Finance-specific learning pathways can help staff build new competencies and progress into more advanced roles, reducing reliance on external recruitment.

Predictive analytics can support this effort by identifying emerging skills needs and guiding investment in training. By aligning development programmes with business priorities, insurance firms can ensure their workforce remains agile, capable, and ready to meet evolving industry challenges.

In 2025, effective talent management in insurance is defined by agility, scalability, and insight. Organisations should adopt a skills-first mindset, using data to forecast needs and design resilient workforce strategies.

This means embedding talent management into broader business planning, using technology to automate routine tasks, and creating inclusive career paths that support internal mobility. Equipping HR leaders with the tools to respond to market changes quickly can help your business build teams that can adapt and thrive.

Platforms like Access PeopleXD Evo support this transformation by unifying HR processes and providing actionable insights across the employee lifecycle. From recruitment and onboarding to learning and succession planning, these tools enable HR teams to operate strategically and efficiently.

Ready to close skills gaps and boost retention? Our Talent Management software is designed for enterprise-scale HR teams to deliver fairer feedback, accelerate career development, and improve business outcomes. Book a demo or download the brochure to explore how it could transform your workforce.