Gallagher Bassett warns of increasing challenges of talent attraction & retention
Talent attraction and retention now ranks as the top business challenge for 2026, according to Gallagher Bassett’s The Carrier Perspective: 2026 Claims Insights. This marks a sharp increase from last year, when UK insurers ranked the issue seventh.
72% of UK survey respondents reported an increased difficulty in finding qualified candidates, while 48% reported that claims management and adjusting are facing the most acute shortages.
The findings come as no surprise to Sarah Penny (pictured), Gallagher Bassett’s client services director, who has noted the growing concern within the industry as workforce challenges exacerbate pressure on operational performance across the market.
“With claims becoming more complex, the demand for more specialised expertise is higher than ever before, limiting entry pathways into the insurance sector for graduate or less-experienced workers. Not only does this demand for expertise increase challenges in attracting new talent, it also puts more reliance on the existing workforce.”
“As a result, the retirement of experienced and qualified handlers is having a greater impact, causing a recurrent loss of expertise and technical experience without an adequate plan for succession. Replacing expertise is far harder than replacing headcount.
New hires require longer ramp up periods, placing sustained pressure on already stretched teams,” says Penny.
The challenge of finding qualified candidates has become significant, as has attracting young talent into a career in insurance. According to the Claims Insights report, employers in the sector are now adjusting hiring practices to address these challenges. 60% of UK insurers are adopting the 'grow your own' strategy – focusing on training and development as their solution.
Insurers across the UK are also shifting retention strategies, prioritising investment in training and development over raising wages and bonuses. 58% of survey respondents are enhancing employee benefits, 48% are offering higher wages or bonuses, hybrid work models continue to grow in popularity with 63% citing it as their preferred structure.
“When it comes to flexible working arrangements, hybrid work models have become a baseline expectation for attracting talent,” says Penny.” In addition to this model's significant upsides — like increased productivity and reduced costs — hybrid working enables organisations to access a wider talent pool geographically, creating more opportunities for hiring quality talent.”
“The increased focus on nurturing talent is a positive for our industry. Many of our employees here at Gallagher Bassett have shared how flexibility, training and development, and mentoring have allowed them to diversify and hone their professional skills, leading them to establish a long-term career trajectory that's both exciting and fulfilling.”
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