GLOBAL TREND REPORT INSURANCE H1 JAN-JUN

Transcription

1 GLOBAL TREND REPORT INSURANCE 014 H1 JAN-JUN

2 AN IMPROVING MARKET WORLDWIDE In line with our commitment to keep professionals working in Insurance up to date with employment and recruitment trends, at the close of 2013 Morgan McKinley conducted an international survey of its consultants in four markets. We asked consultants to characterise the current overall trends in recruitment across the sector (including consulting, direct, brokerage and reinsurance): In China and Ireland the market improved in 2013 and there are good grounds for optimism in 2014 The United Kingdom market has also improved but the prospects for 2014 are less clear In Hong Kong the market was stable in 2013 and we are optimistic for 2014, largely due to expansion into new overseas markets There is some considerable backfill requirement following the years of economic downturn We expect candidates to be more proactive in seeking new opportunities Compliance and regulatory issues are major factors in job creation in all markets QUICK LINKS CHINA... 2 HONG KONG...4 IRELAND... 6 UNITED KINGDOM

3 Building your network of contacts is the most valuable form of training. CHINA SURPRISING NUMBER OF NEW MARKET ENTRANTS In the second half of 2013 we saw an increase in demand for Insurance professionals in China, with employers recruiting both new and replacement headcount. The main factors driving this growth appear to be anticipated or actual planning for the future in the light of the economic upswing, organisational changes that are under way, compliance and regulatory issues and challenges, IT changes such as the implementation of new systems and insurance applications, and the globalisation of functions. The biggest growth area was sales, marketing and distribution, followed by risk and actuarial functions and operations, with demand highest at the assistant manager and manager levels. On the technical side, there are opportunities for insurance specialists with experience in e-commerce and digital marketing. We have been surprised by the number of new market entrants, especially joint ventures. Growth might have been even faster were it not for the licensing issue. In China, insurance companies need different licenses to operate in the various sectors. As such, growth and expansion plans are usually hampered by the difficulties in obtaining these licenses it can be a rather lengthy process, especially for foreign companies. In addition, the wealth management arm is limited by China s regulations. It is common for companies to channel funds elsewhere, for example to Hong Kong, for wealth management activities. Remuneration packages are generally keeping pace at senior levels. However, as the growth phases are unevenly distributed, there are some cases where salaries for niche support roles are not keeping pace with market demand. 2

4 OUTLOOK Our outlook is broadly optimistic. The insurance industry is set to continue its growth in China, especially in life products. Demographically, the rising middle classes and growing numbers of professionals, managers, executives and technicians (PMETs) will create a higher demand for comprehensive and international life and medical insurance products, comments one of our Shanghai-based consultants. We therefore expect to see a continuation of the current growth patterns in 2014 and this will incentivise more candidates to come forward in seeking new employers. Although it is important to have the appropriate financial and insurance-specific qualifications, in the current environment of rapid growth handson experience is highly valued, so candidates are advised to highlight this on their CVs and be ready to talk about projects at interview. Candidates should also focus on expanding their network of contacts as this is the most valuable form of training in China. However, changes in the regulatory environment may prove to be a brake on growth in 2014 and beyond. China aims to restructure its pension and medical schemes and possibly raise the retirement age, which may impact current policy schemes. 3

5 One of the most interesting developments is the expansion into markets such as Vietnam, Malaysia and Indonesia. HONG KONG DEMAND FOR NEW HEADCOUNT IN KEY AREAS Against the wider economic uncertainty, the Hong Kong Insurance recruitment market has remained relatively stable throughout We did witness some organisations experiencing restructuring and internal deployment, which has decreased demand in some areas, such as finance roles. On a positive note, changes within the local regulatory and governance arena have resulted in an overall increase for new and replacement headcount in critical areas such as compliance. Other areas where we have seen new headcounts include risk (operational and financial risk), strategy, distribution and internal audit. Within some of these areas, the lack of local supply to meet this increased demand has been challenging and many organisations have been more flexible with their requirements, willing to cast a wider net to consider returnees to Hong Kong with local language skills and at the more senior end, experienced industry professionals with proven track records in Australia and Europe. Overseas education and experience is seen as an asset, with many clients commenting that dynamic individuals who are creative and solution-oriented will always be in demand. One of the most interesting developments has been the demand for senior managers to lead expansions into overseas markets such as Cambodia, Vietnam, Malaysia and Indonesia. 4

6 OUTLOOK We are optimistic that there will be an improvement in the market in 2014, though the hiring processes, especially for new roles, are likely to remain drawn-out and this may result in some employers missing out on their preferred candidate. There will be further openings in the areas where we saw growth in 2013, such as compliance, risk (financial and credit), audit, investment strategy and ALM. As many insurers and reinsurers continue to look to the wider region for growth opportunities, candidates with regional experience and local language skills will still remain the top priorities for employers. With the pending bonus pay-outs and annual salary review season upon us, we have already started to see candidates being more proactive in seeking new employers and this will continue into Q2. Candidates will need to be able to demonstrate that they have the right qualifications (actuarial, risk-related etc.), relevant experience and strong communication skills. Psychometric testing for potential new employees, as well as competency-based interviewing is now becoming common practice, across all levels of hiring. Candidates who have short notice periods are seen as very attractive hires. 5

7 Candidates should sit relevant exams such as CIP or QFA as soon as possible. IRELAND INSURERS CAPITALISING ON UPSWING In Ireland the recruitment market in Insurance got significantly better in the second half of 2013 as companies sought to reorganise and capitalise on the economic upswing. Many organisations are also responding to the new regulatory and compliance requirements by adding new headcount and in general, we have seen recruitment budgets increasing as companies build up teams again following the cutbacks and redundancies of recent years. Employers are recruiting for operational (claims, underwriting, customer service etc.), strategy and projects and risk/actuarial functions, in particular at junior and assistant manager levels. In addition to insurance and actuarial professional qualifications (the most relevant of these in Ireland are the QFA, CIP and ACII) employers are looking for candidates who exhibit general strategic, managerial and communications skills. At the senior level, well-qualified actuaries are always in demand and there has been an increase in demand for senior risk officials in recent months. Remuneration is competitive in these two areas. One of the most surprising features of the recruitment market in 2013 was the number of vacancies posted by new entrants to the Irish insurance market. OUTLOOK We expect to see the improving market continue into 2014 with more candidates getting proactive in seeking new employers. With increasing regulatory pressures and the introduction of minimum competency requirements, my top piece of advice would be for candidates to sit the relevant exams such as CIP or QFA as quickly as possible, says one of our Dublin consultants. Longer term there may be a skills shortage. The University of Limerick is the only one in Ireland providing an insurance-specific degree course and its graduates are always in high demand. 6

8 Candidates are advised to specialise in a particular sector and role. UNITED KINGDOM DEMAND FOR NEW HEADCOUNT In the United Kingdom the recruitment market in the Insurance sector has picked up with the improving economic outlook and there is demand for new headcount. Further factors include IT changes, such as the implementation of new ERP systems and insurance applications, organisational changes and compliance issues. The main growth areas are in strategy and projects, compliance and finance, particularly at assistant manager levels and below. However, the situation is not all rosy as many companies still have cost saving measures and recruitment and pay freezes in place or are consolidating functions. Moreover, hiring processes tend to be lengthy. OUTLOOK Our overall outlook for 2014 is neutral. Roles in strategy and projects and compliance will continue to be offered and we expect to see more openings in audit functions. We think candidates will be more proactive in seeking new employers but the competition will be strong. My top advice is to get a strong actuarial qualification and then specialise in a particular sector and role, says one of our London-based consultants. In addition, candidates applying for the most attractive roles must be able to demonstrate general strategic, managerial and communications skills. 7

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