Prospects for salary increases in the insurance sector remain subdued, according to recruitment group Hays.

The 2016 Hays Insurance Salary Guide, which analyses salary and recruitment trends, says more than half (58%) of Australia’s insurance workers will receive an increase of less than 3% at their next remuneration review and 12% will receive no increase at all. Just 30% can expect an increase of more than 3%.

Hays Insurance Business Director Carl Piesse says employers are reluctant to offer substantial increases “unless absolutely necessary”.

“While the shortage of suitable skills remains, especially in claims, underwriting, account management and sales, employers are developing flexible working arrangements such as working from home and flexible part-time roles rather than big salary increases to attract and retain talent,” he said.

In broking, Mr Piesse says there has been “consistent demand” for commercial brokers, account executives and assistant account executives. Despite the demand, employers remain reluctant to loosen the purse strings.

“While salaries for these roles have stagnated, flexible hours, working from home and increased commissions and bonuses are being offered instead.”

Larger insurance companies are developing and aligning technology to help them meet the changing requirements of customers. This has resulted in an increased demand for a range of technical skills.

Overall the shortage of suitable skills in the insurance sector remains, especially in underwriting, account management and sales. To address the shortage, larger insurers are offering traineeships to develop future talent.

In New Zealand, strong demand for brokers continues, although firms are looking for “new blood with a fresh approach” in what is a soft market.

Hays also notes ongoing demand for broker support candidates and account brokers to replace employees “moving up, moving on or leaving the sector”.

Underwriters with commercial experience are being headhunted throughout the industry as firms ramp up underwriting teams. This has resulted in upward movement in remuneration.

Claims is experiencing solid hiring levels with employers seeking predominantly low to mid-level experience.