Australian insurers are experiencing deeper workforce challenges than peers in other markets, with growing concerns about the sector’s ability to attract and retain skilled professionals.
According to Gallagher Bassett’s (GB) latest whitepaper, “The Carrier Perspective: 2025 Claims Insights,” 92% of Australian insurance respondents said a limited talent pool is affecting claims management and business growth. This compares to 72% of respondents globally who reported similar issues.
The findings suggested that workforce limitations may be more acute in the Australian market, with insurers reassessing their strategies for maintaining operational continuity amid increasing competition for talent.
Employers across the industry are placing greater emphasis on non-financial benefits to address retention, with 74% of local respondents identifying enhanced benefit offerings – such as wellness programs and flexible work – as central to their approach.
While remuneration remains a factor, GB noted a sharp decline – 54% – in reliance on salary increases as a standalone retention tool.
Tanith Jones, GB’s general manager of people and culture, said support for professional development, additional leave entitlements, and access to well-being programs are playing a bigger role in staff engagement and loyalty.
“Insurers can focus on the development of existing employees through leadership or technical skill-based programs, which has a dual benefit in also attracting new talent looking to enter or grow in the industry. Understanding what matters most to your employees can go a long way towards increasing their job satisfaction and ensuring long-term retention,” she said.
The shortage of experienced claims professionals is particularly pronounced, according to GB. With a growing proportion of the workforce nearing retirement, insurers face an ongoing challenge in filling technical roles.
“The talent deficit in the insurance industry is a pressing issue that cannot be overlooked. Australia is the most severely impacted by this trend, with a significant portion of the workforce nearing retirement age and a shortage of new talent to fill the gap,” said Debbie Vounakis, GB’s head of sales and client services.
GB’s insights reflect wider employment trends highlighted in Aon’s 2025 Human Capital Employee Sentiment Study, which reported that 60% of workers globally are open to changing roles in the coming year, indicating continued volatility in the talent market.
Aon’s study, which surveyed more than 9,000 employees across 23 countries, highlighted evolving expectations, particularly around well-being, flexibility, and cultural fit.
Gen Z workers, for instance, ranked work-life balance as the second most important benefit after medical coverage – placing it ahead of paid time off and career development.
The research found that employees are placing more value on organisations that support life outside of work, with a focus on hybrid arrangements, technology-free hours, and job-sharing.
Workplace culture also remained a significant factor, with 47% of respondents identifying competitive pay and meaningful benefits as top priorities. However, the study found that only 41% had access to benefits they could customise, and a majority lacked clarity on what their employer-provided coverage included – particularly in areas like life and disability insurance.
The Insurance Council of Australia (ICA) is taking a structured approach to address long-term talent issues.
In September 2024, the industry body released a six-year Insurance Industry Talent Roadmap designed to sustain workforce capability and attract new talent.
