Attracting and retaining top performers has become an increasingly demanding exercise for Australian insurers, according to Gallagher Bassett's (GB) annual whitepaper: The Carrier Perspective: 2025 Claims Insights.
GB's research revealed that 92% of Australian insurers report the shrinking talent pool is having a moderate-to-significant impact on their ability to grow and manage claims efficiently. In comparison, 72% of respondents globally reported the same, indicating Australian market conditions may be more challenging. Economic factors and increased competition are pushing employers in the insurance industry to reexamine their retention strategies.
74% of Australian survey respondents highlight enhanced benefits packages — like well-being programs and flexible work arrangements — as their top strategy for managing turnover. Hirers are placing more emphasis on benefits such as work-life balance, hybrid working arrangements and policies that improve employee satisfaction. Holistic retention strategies involve more than just increasing compensation, as high salaries often do not strongly correlate with long-term commitment.
Highlighting the dwindling impact of compensation and benefits in the workplace, Tanith Jones, general manager of People & Culture at GB, points out: "This year's survey results saw a 54% decrease in using competitive salaries as a retention tool. Non-monetary incentives are essential to driving productive workplaces. Employers are leveraging benefits such as paid time off, professional development allowances and wellness programs to engage their team and positively influence their output and loyalty. Insurers can focus on the development of existing employees through leadership or technical skill-based programs, which has a dual benefit in also attracting new talent looking to enter or grow in the industry. Understanding what matters most to your employees can go a long way toward increasing their job satisfaction and ensuring long-term retention."
Debbie Vounakis, head of sales and client services at GB, emphasises the importance of retaining experienced team members: "The talent deficit in the insurance industry is a pressing issue that cannot be overlooked. Australia is the most severely impacted by this trend, with a significant portion of the workforce nearing retirement age and a shortage of new talent to fill the gap. Partnering with a third-party provider such as Gallagher Bassett can effectively assist organisations in managing claims and building your internal capability in return-to-work and technical claims handling.
"The demand for skilled claims staff has increased dramatically in the past 12 to 18 months. Since 2024, our NSW and VIC client services teams have grown significantly. We've built successful client relationships through diversely skilled team members and effective collaboration. Our experienced team understands our customers and their needs."
To read The Carrier Perspective: 2025 Claims Insights in full, visit Gallagher Bassett.
About Gallagher Bassett:
Gallagher Bassett (GB) is Australia's leading provider of claims and risk management services, helping people and companies prevent, manage and overcome the impact of risk.
https://www.gallagherbassett.com/au/
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Oliver Best — Brand and Reputation Specialist, Gallagher Bassett
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