Trends Shaping Insurance Recruiting in 2025

staffingrecruitme
Aug 29
2 min read

1. Compensation Remains King

Base salary is a top driver in the insurance sector. Around 92% of insurance and actuarial professionals indicated that a higher base salary is their key motivator when considering a job change. While typical annual raises are modest (2–3%), switching employers can yield increases of 5–7%, depending on location and seniority.

2. Flexibility Isn’t Optional—It's Essential

Flexible working arrangements are a non-negotiable for most insurance professionals:

94% consider flexibility important in a new role.
Only 43% are willing to accept fully office-based jobs. Hybrid work is now the norm—with 75% of insurers expecting hybrid to remain standard, and a mere 3% requiring full-time office presence. Interestingly, some anecdotal insights highlight the appeal of full remote roles:

3. Digital & Data Skills Are in Demand

As insurers digitize and modernize, talent with skills in analytics, AI, and InsurTech is increasingly sought after. Noteworthy trend areas include:

Data science, analytics, and business intelligence.
Cybersecurity roles to support growing digital services.
Sustainability and ESG analysts to integrate environmental and governance criteria. Competition is fierce; top digital talent often commands multiple offers.

4. AI Is Reshaping Recruitment—With Caution

AI tools are increasingly used to streamline hiring—automating candidate screening, chatbot interactions, and predictive fit analysis. Usage jumped from 55% to 78% among large enterprises between 2022 and 2024. Yet challenges persist:

Bias: AI models may reinforce historical biases unless audited.
Opacity: Decisions often lack transparency or explainability.
Regulatory pressure: Laws like the EU AI Act and EEOC guidelines demand accountability.
Seniority limitations: Human judgment remains critical for executive-level hires.
Experience matters: One study found many senior candidates withdraw if communication feels impersonal.

5. Employer Branding & Culture

With talent having the upper hand, employer brand is pivotal:

Authentic storytelling, social media presence, and employee advocacy all help attract top talent.
Strong brands can yield up to 50% more qualified candidates, slashing hiring costs and bolstering retention.

6. Diversity, Equity, and Inclusion (DEI)

DEI is now a business imperative—not just a morale booster. Inclusive hiring practices drive innovation and performance:

Companies with diverse executive teams outperform peers by over 35%.
Inclusive cultures are 60% more likely to generate breakthrough ideas.

7. Sustainability, ESG & Purpose-Driven Hiring

Insurance firms are prioritizing sustainability and social impact:

Growing demand for professionals skilled in ESG, climate risk, and sustainable underwriting.
Opportunities in developing green products and aligning portfolios with net-zero goals.

8. Retaining Talent Amid Market Shifts

While many firms struggle to meet recruitment expectations (43% cite salary expectations and 36% highlight weak benefits), some progress is being made:

Turnover appears to be slowing; 6-month voluntary turnover is at 5.8% versus an annual average of 8.5%.
Investments in compensation, career development, and culture are key to retention.