A few years ago insurance professionals in their thousands were being laid off by an industry determined to drive down costs. Now there’s a shortage of skilled staff, and the same insurers are paying through the nose trying to find suitable people.

Recruitment firm Hays says demand for qualified and experienced personnel is driving up salaries in the insurance industry. Its latest quarterly forecast says there is a continued short supply of insurance professionals.

“The number of trainees entering the market continues to be low, and consequently the industry lacks staffing across all areas,” the forecast says. It warns that qualified brokers and underwriters will be scarce until at least mid-year.

“There have been no significant changes to the recruitment practices of most firms, although companies have been reacting faster to candidates, as the competition is strong.”

Hays says large corporations aim to be more streamlined in their recruitment processes to save time and money, as well as help secure suitable people quickly.

It’s much the same story in New Zealand, where demand for senior managers, processing staff and specialists in claims, underwriting and business development has led to what Hays describes as “incredible activity” in the recruitment market.

“Experienced claims candidates will continue to be in demand in the next quarter, together with brokers and experienced business development candidates with industry experience. This is due to the focus on increasing market share and maintaining service levels.”

The report says some companies are paying much higher salaries and offering little in the way of benefits to attract and retain staff. Others are similar in their salary ranges and offer a wide range of benefits as they vie to become more attractive to candidates.

“Brokers also tend to pay more to staff than insurance companies. Larger firms offer benefits, smaller firms offer higher salaries.”