Insurance sector pay trends look good for 2015
A report from consulting firm TCS says that salary budgets for the insurance sector are increasing at “an accelerated pace”. The survey of the insurance businesses across the US found that companies are budgeting significantly more for salary increases in 2015, with executives in line for 3.5 per cent; up from 2 per in recent years. The better economic outlook is the main driver of these increases. While this is certainly good news on executive pay, there is no guarantee that salaries for insurance professionals at lower levels will see similar pay rises.
Risk managers in high demand but short supply for banking sector
As the cost of compliance breaches has been ramped up since the financial crisis, banks can no longer afford to ignore the risk from regulatory pressures. It has led to financial institutions hiring more risk professionals and putting these teams in a central position in the organisation. The biggest issue currently is one of supply; there aren’t enough risk managers with the right skills and experience currently. As the banking sector is not the only one to be bolstering risk management teams there is a general shortage and the additional skills required by the sector are lacking. Susan Palm from risk management and compliance software company MetricStream says that one of the systemic problems is the lack of educational courses being offered in universities. Read the full story.
Insurance comparison website aims to shake up the US market
A small start-up company in New York is aiming to shake things up in the insurance sector with the launch of their price comparison website. PolicyGenius.com is working with major insurers including MetLife, ING and TransAmerica to provide a service which has already caused huge waves in the sector elsewhere. Although currently not targeting commercial lines it highlights the growing thirst for buying insurance online, or at least for doing some of the research. For agents and brokers it could pose some challenges, with clients wanting more access and information online. However it also creates an opportunity to target marketing towards those who want to deal with a person rather than a website and get a more tailored service.
UK government sets out vision for global action on climate change risk
With an international conference on climate change scheduled to take place in Paris next year, the UK government has this week set out its vision for tackling the biggest threat to our world. The document says acting now to reduce greenhouse gas emissions can help prevent the worst effects of climate change and can bring significant benefits to all countries. A global deal would make tackling climate change much easier as it would give a decisive political signal that the future is low carbon, opening new markets and reducing technology costs. Commenting on the need for action Mark Wilson, Group CEO of insurance firm Aviva plc says: “We can’t assume we have access to unlimited natural resources and that we can consume them without consequences. How we behave today risks leaving a terrible legacy for the future – not just for humanity as a whole, but also for long-term business success.”
