Talent attraction and retention have surged from seventh place last year to become the top business challenge for UK insurers in 2026, according to Gallagher Bassett’s The Carrier Perspective: 2026 Claims Insights report.
The survey found 72% of UK respondents reporting greater difficulty in finding qualified candidates, while 48% highlighted acute shortages in claims management and adjusting. In the UK findings, talent retention ranked as the leading concern at 22%, ahead of premium affordability and insurability at 17%.
Gallagher Bassett’s client services director Sarah Penny (pictured above) said the results reflect deeper industry pressures. Claims are growing more complex, raising demand for specialised expertise and narrowing entry routes for graduates or less-experienced workers.
This reliance on existing staff intensifies when experienced handlers retire, as institutional knowledge leaves with them and new recruits need extended ramp-up time.
UK carriers are adapting their hiring and retention strategies. 60% are adopting a “grow your own” approach centred on training and development.
Rather than relying mainly on higher pay, many are prioritising learning opportunities. Some 58% are enhancing employee benefits, 48% are increasing wages or bonuses, and 63% are expanding hybrid working models.
“When it comes to flexible working arrangements, hybrid work models have become a baseline expectation for attracting talent,” Penny said. She noted that such arrangements help organisations tap into a wider geographical talent pool.
These challenges sit against a longstanding backdrop of an ageing workforce in UK insurance, where many experienced professionals are approaching retirement and succession planning has often lagged. Industry observers have noted for several years that this demographic shift risks eroding technical knowledge, particularly in complex claims roles.
In the evolving managing general agent (MGA) sector, sustained investment in talent, learning and diversity is viewed as essential for operational resilience. Mentoring programmes are increasingly seen as playing a central role in attracting and retaining younger professionals who seek purpose, ongoing development, flexibility and stronger professional connections.
Penny observed that many employees at Gallagher Bassett have credited flexibility, training, development and mentoring with helping them build diverse skills and pursue long-term careers in the sector.
The report underscores how insurers are balancing talent retention strategies amid rising claims complexity and operational demands.
