About 68% of employers in the financial services sector, which includes general insurance, are planning a pay rise of up to 3% when they next review salaries, according to recruitment firm Hays.

The sector is also more upbeat about the future, with 79% expecting business activity to increase. This compares with 64% last year.

“Salaries within the insurance sector have been broadly stable over the last year across Australia, with the biggest increases observed within workers’ compensation, predominantly in NSW and Victoria,” this year’s Hays Salary Guide says.

Demand for workers with digital skills and experience is expected to increase as the sector catches up with other industries, which have been quicker to realise the benefits of digitalising their business models.

The sector will also have to allow for more flexible working hours.

“One major trend within the insurance jobs market is digitalisation,” the guide says.

“While some insurers have been proactively adopting digitalisation, the industry as a whole is behind other areas within financial services. This will lead to an increase in technical roles as businesses start to plan for necessary transformations.”

More than 2950 companies employing over three million workers were surveyed for the guide.