Insurance takes seventh place in the list of Australia’s professions most impacted by skills shortages, according to a survey of employers by recruiter Hays.

The survey of more than 14,000 found 90% of insurance employers said they were experiencing a shortage of skilled staff.

"Not all roles are experiencing the same level of intensity,” the latest Hays Salary Guide said, noting insurance, defence, human resources, healthcare and construction, were “experiencing higher levels of skills shortages”.

The recruiter believes a “skills recession has firmly entrenched itself” in the labour market, and Hays Asia Pacific CEO Matthew Dickason says a shrinking skills pipeline threatens the effective operations and growth plans of organisations.

With the skills shortage predicted to last well into the 2030s, employers must guard against the long-term impact.

“As employers compete in a tight talent pool, we’re seeing a significant surge in salaries, with both the number of increases and their value continuing the upward trajectory,” he said.

The top five insurance roles employers need to fill in Australia are property and casualty underwriters, commercial brokers, liability claims consultants, SME underwriters and workers compensation specialists. 

In New Zealand, claims consultants, loss adjusters, broker support, compliance specialist and brokers were listed.

Insurance staff polled say their top career priorities are a pay rise, being able to work flexibly and learning or developing technical skills. Bosses say they are prioritising training and career progression opportunities.

Pay rises are on the horizon, with almost all employers intending to offer some increase at the next review. However, Hays found around a third say the change will be just 0-3%.

Meanwhile, two thirds of insurance staff say a pay rise of greater than 7% is required to reflect their performance and demand for their skills. 

Salary is the most significant factor in talent attraction and retention but "not the whole picture,” Mr Dickason says. 

"Employers must also see beyond the numbers and consider the ‘emotional salary’ they offer, consisting of the right mix of benefits, work-life balance, upskilling and personal fulfillment. This will be key to unlocking an organisation’s potential during this extended skills recession.”

The highest salaries in the insurance sector belong to heads of claims and chief underwriters in life insurance, where $200,000 a year is typical. In general insurance, heads of claims average $180,000, and underwriting managers and account directors in broking can expect typical salaries of around $170,000 in various states, the Salary Guide says.

To expand talent networks and build future capability, employers are investing in upskilling, while 37% would consider employing or sponsoring an overseas candidate, up significantly from last year’s 7%.

Employers value communication and adaptability, while in future critical thinking and agile leadership will be more highly sought after.

See the survey results here.