2017 Recruitment trends in the Catastrophe Risk Market

Much like the Premier League, the Insurance Market also has its own transfer window. For us recruitment consultants, the next 3-4 months or so is exactly that. Bonuses have been paid and for some, particularly in this soft market, all of a sudden, the money you set aside in your head for that new conservatory has been halved!

The market has always been busiest at this time of year ever since I joined it:- the old ‘hold on for your bonus and then start looking’ has been the time old tradition. But what has been going on in the Catastrophe & Exposure space? If you have lost someone, what should you be looking out for? If you are looking, what is the best bet for you?

Key Trends:

Heads of/Managers: Now this has been an interesting space to watch! Everyone is waiting with baited breath to see what is going to happen with the Head of Exposure Management at Lloyd’s…it seems like every day I’m hearing something else. Clearly if they choose an external hire, this should open up movement in the market. But outside this, it has been relatively quiet. Why? The majority of ‘Head of’ jobs are being recruited by start-ups, particularly under the Asta banner. Due to their size, they are rightly bringing in young ambitious individuals who can grow with the business (the manager tier). So what does that mean for the ‘Head of’ who has been in post for several years? The hope for us all is simple … surely with Solvency II out of the way (to an extent), the limelight can now shine on Exposure Management. Better analytics and more portfolio optimisation is one of the few ways to try and grow the bottom line in a tightening market. With insight like that, surely the Head of Exposure Management’s seat on the top table cannot be too far away? And one has to think, when one person manages to hit the board, the rest of the dominos will start to tumble and Exposure Management will have finally reached its end goal.

The ’1-4’ year market: This has always been the market’s biggest area of churn. The reason for it is simple:- Exposure Management functions have more analysts than managers for the most part. Also, certainly in some of our bigger brands, there tends to be a blockage and it becomes increasingly difficult for analysts to see a long term career path. So if you lose someone at this level, what do you do? The answer for me is simple…promote from within and bring in a graduate. If you have the time to train and develop, a graduate who has ideally had some sort of work experience in this field is the way to go. Clearly, not everyone has this luxury and the market is rife with 1-4 year analysts who have had their bonuses and are looking to move. My message to anyone hiring here is always the same…be careful what you are bringing in. If someone is looking to leave after a year, there needs to be a strong reason why. If they haven’t been promoted within 4 years, why? The gulf in skill at this level is staggering from syndicate to syndicate, so make sure you do your research!

If you are looking, what is the best next step? The answer for me here is equally simple, add to your CV. If you are modeller with 2 years in Binders, try to get some exposure to other lines. If you have only used RMS, would some AIR exposure hurt? Only worked for a top 5 insurer, try a smaller brand that could offer more breadth for you. The best modellers in the market can price any line, optimise any portfolio and use any model…that is the aim of the game. You need to be a trusted advisor to the underwriter, not sitting in a modelling black box. Leaving one company to join another to work on exactly the same book may fix a short term issue, but can it solve your career ambitions? With experience, I’m not so sure…

What else is going on?:

-         Outsourcing seems to be an ever increasing topic! I can name a few Managing Agents who have lost staff recently and have been forced to outsource rather than replace.

-         Reporting lines are still the cause of much debate…CRO/Chief Actuary/CUO? I’d be interested to hear your thoughts on this, there doesn’t seem a right or wrong way to do this?!

-         Investment in Flood Modelling seems to be an area of intense interest…whilst some companies are battening down the hatches and waiting for this soft market to blow over, others are investing heavily in analytics to find that extra 1% on the bottom line

As always, if you have any thoughts/questions on what you have read, please don’t hesitate to get in touch at tony@fsquaredrecruitment.co.uk or on 07952924336