The Australian insurance industry is facing an intensifying shortage of skilled professionals, with the gap now being felt across underwriting, broking and claims. For many firms, the issue is no longer confined to recruitment teams; it is increasingly being recognised as a strategic threat to growth, customer service and operational resilience.
The Insurance Council of Australia (ICA) has warned that nearly 30% of the current workforce will be at retirement age by 2030. In practice, that reality is already here. The talent shortage is being felt across multiple areas of broking and is becoming a very real industry concern. This demographic shift, combined with rising customer expectations and increased regulatory scrutiny, is intensifying pressure on brokers and exposing acute shortages in different areas of the profession.
One of the most urgent gaps is in technical broking. These brokers specialise in designing, negotiating and placing coverage for complex or non-standard risks, offering detailed risk analysis and bespoke solutions that set them apart from generalist brokers.
“These are brokers with extensive years of experience, either in highly specialised areas or with a broad understanding across multiple classes of insurance,” said Kylie Stephens (pictured), managing principal of PSC Insurance Brokers in Darwin. But she and her peers warn that this deep expertise, built over decades, is not easily replaced, and the pipeline of new professionals with comparable skills remains worryingly thin.
Stephens also points to the demand for what she calls the “showman broker.” “Another area of shortage is what I would call the ‘showman broker,’” she said. “These individuals may not be the most technically advanced, but they possess an invaluable skill set: the ability to connect with people effortlessly.” These are the relationship-builders who, as Stephens puts it, “form the backbone of client retention and growth.”
The rise of technology in broking has also created demand for “digital brokers.” Stephens describes them as “machines behind the screen. Highly organised, process-driven, and able to absorb knowledge like a sponge, they excel at efficiency.” These professionals combine technical know-how with exceptional organisational skills, often handling double the workload of their peers, while building systems, streamlining processes and driving productivity. “Their contribution to productivity and consistency is immense,” she added.
The rarest group of all are the so-called “unicorns”—brokers who can blend technical expertise, client engagement and operational capability. “This rare category of brokers combine technical excellence, strong interpersonal and client engagement skills and operational capability,” Stephens said. “Professionals of this calibre are getting rarer and as experienced brokers retire the industry is struggling to find individuals who can bring all these elements together.”
Claims management teams across the sector are also feeling the pressure because of increasing volumes, more complex claims and the evolving nature of risks. Cyber incidents, business interruption claims, and climate-related losses are placing additional demands on claims professionals, who are now expected to combine technical knowledge with speed, accuracy and customer focus.
Underwriting has become a pressure point as well, particularly in property, cyber and professional lines. As risk profiles evolve with climate change, cybercrime and supply chain vulnerabilities, employers are seeking professionals who can combine deep insurance knowledge with data analytics and digital fluency. Yet according to a global whitepaper by Gallagher Bassett, 92% of Australian insurers say a shrinking talent pool is already impairing their ability to manage claims and grow their businesses – well above the 72% global average.
Industry bodies and firms are taking steps to respond. The ICA’s six-year workforce strategy includes university partnerships and a national branding campaign to reposition insurance as a career of choice. Individual insurers and brokerages are investing in mentorship programs, hybrid working models and digital tools to ease workloads. Some are also pairing experienced staff with new recruits to safeguard knowledge transfer.
But despite these efforts, the scale of the problem suggests that talent will remain a defining challenge well into the 2030s. With an ageing workforce and heightened customer expectations, the industry must not treat recruitment and retention as an HR function alone. For brokers, underwriters and claims leaders alike, it is now a board-level priority that will shape competitiveness and resilience for years to come.
How are you experiencing the talent crunch at your brokerage? Please tell us about the areas of broking work where you are feeling the pressure most.
