The insurance industry will face mounting salary pressure in the coming months as the persistent shortage of commercial claims consultants and other skilled professionals shows no sign of easing, according to recruitment group Hays.

In its latest salary guide, Hay says the industry will remain an “active job market” over the next 12 months with high demand for professionals with specialist knowledge.

Cyber underwriters and cyber claims consultants are in greatest demand and insurers are finding it hard to fill vacancies because cyber is still a “reasonably new” product.

Hays says prospective employers want cyber specialists who have the experience to help expand and support growing demand for digital products.

Also in demand are professional indemnity and liability claims candidates at the consultant and manager level with relevant experience. They are in short supply, due partly to an increasing number of claims.

Demand for commercial claims consultants has outstripped the supply pool too as the industry seeks to cope with increased business-related claims.

“While salaries were fairly stable over the past 12 months, as we now look ahead to the next 12 months, the demand for skills will see salary pressure mount as employers look to secure top talent,” Hays Insurance Regional Director Carl Piesse told insuranceNEWS.com.au today.

“Benefits, too, will need to be reviewed as employers look to attract candidates with a complete package.

“The jobs market will remain active, so it really is the rising demand for skills that will lead to this salary pressure.”

The Hays salary guide says underwriters with strong relationship development and communication skills are also sought as the automation of formerly manual processes forces the function out of the back office into relationship management.

Hays says the guide has revealed a “salary expectation divide” between employers and staff.

About 76% of insurance employers plan to raise salaries in their next review. This is up from 49% who did so at the last review.

However only 5% of the close to 3500 organisations say they will raise wages by 3% or higher. About 71% say they intend to only increase salaries by 3% or less.

Insurance professionals think otherwise. About 73% say a raise of 3% or more would better reflect their individual performance.

Some 81% are currently looking for a new job, plan to look or are open to new opportunities in the next 12 months. They say an uncompetitive salary, lack of promotional opportunities and concerns about job security are the main drivers.

“The value of salary increases is driving a wedge between employers and employees,” Mr Piesse said.

“On the one hand, we have over three-quarters of insurance employers intending to increase salaries in the year ahead, which is a remarkable sign of the confidence employers exhibit today.

“On the other, professionals say the value of these increases is far less than they deserve. This is creating a gap between what employers will offer and employees say they are worth.

“This divide must be managed sensitively if employers are to retain staff and attract new talent in short supply.”

Click here to access the Hays salary guide.