How insurers can plan their workforce around capability, not just vacancies

Replacing an experienced underwriter, actuary, or claims specialist isn’t always as simple as hiring someone with the same qualifications. Even at the same level, a new hire may take years to develop the judgement, broker relationships and understanding of complex risks that their predecessor had. 

It’s relatively easy to track vacancies, but understanding where a business lacks capability is more complicated. For insurers, this could mean a shortage of specialist underwriting expertise or not having enough experienced claims handlers to manage demand following a major weather event. 

At Robert Walters, we believe effective workforce planning in insurance means understanding which skills and expertise need to be retained, where development is needed and when to bring in external talent to meet changing demands. 
 

When replacing headcount does not replace expertise

Experience matters in underwriting, actuarial and claims roles. It takes years to understand how certain risks behave, spot patterns in claims or to know when a different approach is needed. Very little of that is written down, and it doesn’t pass to a new colleague in a handover week.

When plans are built around vacancies, we see these roles as seats to refill. But replacing someone doesn’t necessarily mean the team can still do everything it could before, particularly as demands on the business continue to change. 

This becomes even more important when workforce needs change. A major weather event can put sudden pressure on claims teams, while specialist underwriting projects may require expertise that isn’t needed year-round. In both cases, recruiting permanently may not be the most practical or timely solution. 

For insurers, workforce planning needs to account for more than the number of people in each role. It means understanding where specialist knowledge sits, which skills are difficult to replace and where additional support may be needed as business demands change. 
 

Protecting expertise while building new skills

When experienced specialists are nearing retirement, insurers need to think about how their knowledge will be passed on. This could mean having a senior underwriter work closely with a less experienced colleague on real cases, rather than relying on a handover in their final few weeks. The earlier that starts, the more of the judgement is likely to transfer.

But passing on existing knowledge is only part of the challenge. Insurers are increasingly using AI and automation in areas such as pricing, underwriting and claims handling. In Everest Group’s Operationalizing TA research, 81% of respondents prioritise increasing automation and AI use. For insurers, this means thinking about how these roles will change and what skills employees will need as technology becomes a bigger part of their work. 

It also changes how junior employees gain experience. As more routine tasks become automated, they may have fewer opportunities to learn through day-to-day work. Giving them experience across underwriting, claims and data teams could help them develop the judgement they’ll need as their careers progress. 
 

Designing the right workforce mix

Everest’s research (Operationalizing TA) finds that nearly 50% of respondents say TA now owns permanent, early-career and contingent hiring, and 60% say TA partners with business units to shape workforce mix using data and market insights. For an insurer, that creates room to look at every route together and match each to the capability involved.

Permanent and early-career hiring

Permanent hiring suits capabilities central to how an insurer competes and slow to grow, such as underwriting judgement in a core line. Early-career programmes can build the pipeline behind them, and work best when graduates have a clear route into the specialisms the business will need.

Specialist contractors and delivery partners

Contractors can bring niche skills for a defined period, such as a pricing model rebuild or a claims system migration. A delivery partner can take responsibility for an agreed outcome, such as scaling a claims team ahead of a seasonal peak and scaling it back afterwards. Robert Walters works alongside clients to understand which route suits which capability and to co-create an approach that fits each business.

Measuring workforce readiness, not just hiring activity

Hiring activity shows how much recruitment has taken place, but it doesn't necessarily tell insurers whether they have the skills and capacity they need. Measures worth considering include:

• Capability gaps against the skills each line will need

• Time-to-productivity for new joiners and flexible resource

• Succession coverage for critical specialist roles

• How quickly capacity can be adjusted when business needs change

Everest also identifies workforce agility and time-to-capability as important measures of TA effectiveness. Agreeing on how to measure these with business leaders at the start of a planning cycle helps ensure everyone is working towards the same goals.
 

What this means for leaders

Some questions that may be useful starting points:

• Which underwriting, actuarial and claims capabilities would be hardest to replace, and who holds them today?

• Where is knowledge transfer already planned, and where is it most exposed?

• Which skills are likely to change most as AI and automation are used more widely, and how will they be built?

• Is the mix of permanent, early-career, contractor and partner resource chosen deliberately for each capability?
   

Compare notes on your workforce strategy

If you are reviewing how your insurance workforce is planned, built and supported, Robert Walters would welcome the chance to compare notes. Inquire with us to talk through the capabilities your teams will need and the best ways to secure them.

Vacancies will always arise. What gives an insurer confidence is knowing which expertise it needs to keep, which it needs to grow and which it can draw on when demand shifts.