Insurers are tangling generous salary packages and hiring offshore to manage a shortage of digitally adept talent which is hampering progress as Australian cover providers push ahead with new technology projects.

Xceedance VP and local Country Manager Stephen Browne says the industry is trying to fill a productivity gap that first took hold last year just as insurers seek personnel with the experience to optimise back-office technology.

Travel restrictions have quashed Australia’s skilled migration program, reducing the talent pool.

“That puts the squeeze on resource availability and promotes the use of offshore teams to fill the gap,” Mr Browne said. “Organisations are now offering big dollars to attract tech talent for in-house positions or looking to companies such as Xceedance to provide resources, teams, and delivery from offshore locations.”

Xceedance says it is tapping into global resources for better employee retention and sourcing models.

“We mitigate attrition by using team members in locations not subject to highly volatile employment markets,” Mr Browne said.

A greater acceptance of technology as consumers conduct transactions at home at their convenience has set a high bar in user expectations, and insurers are increasingly aware their business must generate revenue under vastly different circumstances since the advent of COVID.

As business transactions move online, insurers want to build more customer-centric solutions with robust, modern platforms and full access to data and information, Xceedance says.