In the ever-churning landscape of insurance recruitment, promises of million-pound payouts are proving less effective in attracting and retaining talent than they once were. According to Andy Edwards (pictured), co-founder and consultant at Albion Blake, the market is waking up to the shortcomings of golden handcuffs as a long-term retention strategy.
"Everyone thinks they're worth a million-pound earn-out at the moment," Edwards said. But the reality often disappoints. With many private equity-backed firms unable to fulfil payout promises, a pattern has emerged: a third paid out in cash or deferred shares, followed by a roll-over into yet another long-term deal. "They never actually earn what they think they're going to get," he said. "It keeps rolling on and rolling on."
The disillusionment is especially acute among senior brokers, who, after months or even years of deferrals, see little of the incentives they were promised. According to Edwards, it's not just damaging morale, it also undermines trust and retention. "If everyone was paid what they were genuinely worth, most companies would go bust."
As M&A activity reshapes the broker landscape, what professionals value most is shifting. "Stability is the number-one factor now," Edwards said. The endless cycle of acquisitions has left many brokers working under different corporate banners but alongside the same teams. Clients, too, are looking for consistency. "It's not the producer's business, it's the client's. They want to know their business will be looked after at the same firm for the next two or three renewals."
For firms that can’t compete on headline salary alone, offering a strong, stable internal and external message is becoming critical. Edwards believes this messaging should include a clear commitment to growth without sale, coupled with specialist focus. "Stick to your knitting," he said. "If you're a good marine broker, just be a good marine broker. Don't try and do everything badly."
The shift to hybrid work has been broadly embraced, but not without caveats. "Most people now want a three-and-two flexi week," Edwards said. While flexible models are now the norm for experienced staff, they’re less suitable for newer recruits. "If you're underskilled or new to the industry, you're just not learning. You need osmosis learning – face to face."
Firms that attempted to force a full return to office saw immediate attrition. "[Some of these companies] lost 25% of their staff in three months," Edwards said – a stark reminder of how misaligned policies can erode workforce confidence overnight.
With a wave of retirements and a pandemic-driven gap in graduate intake, the insurance sector is facing a looming talent shortage. Edwards believes the solution lies in early, structured training, and not just within firms. "When firms take individuals on, they waste the first three to six months finding out how bad they are or how good they are," he said.
In-house training, once a mainstay of large brokers and underwriters, has been largely abandoned in cost-cutting drives. That decision, Edwards warned, is shortsighted. "No one is taught to be a manager in insurance. No one is taught to train people properly. It’s just ‘get on with it.’"
Rebuilding a structured, industry-wide approach to technical onboarding could help address the capability gap before it widens. Whether that’s through employer-led programs, partnerships with colleges, or sector-funded initiatives, Edwards said the need is urgent. "The industry can’t afford to keep losing six months every time someone new walks through the door."
For brokers aiming to retain top talent, the message is clear: long-term promises and inflated packages aren’t enough. Today’s professionals want stability, transparency, and meaningful development. As Edwards put it, "Clients want their assets insured. Brokers want a fair deal. It's not complicated, but it does require honesty."
Firms that deliver on those fundamentals, he suggests, are the ones that will attract the next generation, and keep the best of the current one.
