Australian Insurance Industry Grapples With Talent Deficit

By: Tanith Jones

These challenges, and the strategies insurers can take to address them, were highlighted in Gallagher Bassett's annual whitepaper, The Carrier Perspective: 2025 Claims Insights. In this article, learn more about Gallagher Bassett's findings and the steps you can take to address these risks.

The Challenges of a Shrinking Talent Pool

Gallagher Bassett's proprietary data shows that 92% of Australian insurers believe that a declining talent pool is having a moderate to significant impact on their ability to grow and manage claims efficiently; this figure far exceeds the 72% of global insurers reporting similar challenges.

This data suggests that workforce limitations may be more acute in the Australian market, prompting insurers to rethink how they can stay ahead of the curve. Broader concerns include ongoing skill shortages, particularly in technical positions, which make it more difficult for companies to find suitable candidates.

How Insurers Are Leveraging New Strategies

"Retaining experienced team members is also critical amidst a talent deficit," according to Tanith Jones, general manager of People and Culture at Gallagher Bassett. The Carrier Perspective: 2025 Claims Insights whitepaper highlights that insurers are now switching to new strategies to enhance talent retention.

To attract and retain talent, 74% of Australian insurers are investing in enhanced benefits packages — the emphasis is now on providing wellness programs and flexible work options. Interestingly, offering competitive salaries is no longer sufficient to combat employee turnover issues, as evidenced by a 54-percentage-point decrease in employers using competitive salaries as a retention tool compared to the previous year.

The new holistic retention strategies include better work-life balance, hybrid work models and professional development allowances. These initiatives enhance employee engagement and foster company loyalty.

"Aligning workplace practices with employee priorities is crucial in enhancing satisfaction and retention. Insurers who invest in leadership development and technical training benefit existing staff and appeal to potential recruits looking for more meaningful career development," adds Jones.

Building a Strong Future

Debbie Vounakis, head of Sales and Client Services — Personal Injury at Gallagher Bassett, has spent the past 12 months building her team's capabilities to address the critical talent deficit in the Australian market. She says, "With the talent pool shrinking, collaboration with external partners like Gallagher Bassett can help ensure organisations have the expertise and flexibility needed to acquire and retain talent. For instance, Gallagher Bassett has built successful client relationships by meeting the increasing demand for skilled claims staff in Australia through our expanding client service teams in New South Wales and Victoria."

For insurers, strategic investments in people and processes can ensure a skilled workforce and sustainable business growth. The key lies in translating strategic intent into actionable workforce planning supported by the latest data.

To gain insights into the workforce challenges and how insurers are addressing them and setting themselves up for success, read The Carrier Perspective: 2025 Claims Insights.