Technology skills shortages evident in the insurance sector

With many insurers rapidly implementing a range of new technology initiatives in recent years, a skills shortage has developed within the industry, according to the Chartered Insurance Institute (CII).

The insurance and financial services industry’s professional association claimed that demand for employees with talents, such as Big Data and analytics skills, had grown sharply. The organisation found that 62% of insurance companies claim they are struggling to attract talent to meet new technology demands.

A survey of the CII’s 100,000 membership showed that 55% of insurance employers expect to increase headcount over the next year to help address the challenges - a 6% increase on 2013. With not enough talent to go around, however, almost three quarters of insurance firms (73%) now report that there is a skills deficit in the industry - this represents a 15% increase since 2013.

A separate survey, by PwC, has found that nearly 60% of financial services CEOs see the limited availability of skills as impeding growth. It added that barely a quarter have initiated changes to their talent strategy to address this and only 35% believe HR is prepared to make necessary changes.

The PwC report suggests organisations are restricted by the sheer scale of required changes.