FSSC unveils road map to tackle skills shortage

The swiftly consolidating insurance industry must recruit well-rounded employees through work experience schemes and bolster its stock of generalists by introducing secondments and rotations, the Financial Services Skills Council has concluded in a recent report.

The London Market Skills Review, commissioned by the Chancellor's high level group on City competitiveness, has plotted a road map to up-skilling those already working within the insurance sector, and methods of recruiting high calibre staff to fill the industry's skills shortages.

Kitty Usher, economic secretary to the Treasury, said of the report: "From this analysis, it is apparent that the supply of skills to the London market is not keeping up with demand. The UK must continue to develop and recruit the right skills and talent if it is to remain competitive and London retain its position as a leading international financial centre. Addressing this mismatch will require a range of responses."

The research, based on "high-level" interviews with senior London market employers and practitioners, pointed to work experience as a significant source of new entrants to the industry and added that "higher qualification levels must not be an aim in themselves, but a proxy for increased staff competence."

It is hoped that this route will best address the industry's need for multi-skilled - both technical and interpersonal - individuals, which would occur through links with schools and higher education institutions. The report advocated experienced staff be used to mentor and coach internally, which would "ensure the continuity of the skills base" and not lose the experience of an ageing workforce.

Teresa Sayers, chief executive of the FSSC, said: "The FSSC has a two-fold role to play, guided by the FSSC London market advisory group. Firstly, we can work with the industry to develop much needed career paths, supported by robust standards. Secondly, we can help the industry to evolve a skills offer that meets employers' needs."

However, the report also warned that London-based insurers have continued downsizing since 2000, increasing consolidation, which could cause careers of senior professionals to "plateau after five or six years," compounding turnover rates. An estimated 400 jobs per year, almost 1 per cent, will be lost until 2011, with probably acceleration after 2009.