Skills shortages in the UK have eased but most insurers are still vexed by the issue, according to the Chartered Insurance Institute (CII).

Reported skills shortages among UK insurers are at their lowest level for six years.

But a CII survey has shown, for the first time, how quality and service standards have been affected by gaps in technical, business and soft skills.

Of the 2300 institute members surveyed, 67% say skills shortages are an issue, down 10 percentage points since last year. But only 8% highly rate the quality of industry entrants.

Despite these concerns, questions remain over how much companies are doing to capture the best talent. The number of insurers offering internships or work placements has fallen 2% year on year.

Nearly three-quarters of respondents identify skills gaps in their organisation, while more than 40% say the sector needs to focus on bolstering soft and business management skills to complement the technical side of operations.

CII Public Affairs Manager Daniel Pedley says there is a gap between insurers’ efforts to solve skills deficiencies and the reality of the situation.

“There is a clear appetite for our members to get involved in the skills debate,” he said.

The survey shows strong agreement (89%) that obtaining professional qualifications is an important part of staff development. However, only 41% are prepared to take on an apprentice.

The 2012 CII Skills Survey contains industry viewpoints from Aviva, Zurich, Sterling, LV and Towergate.