Industry ‘going to be in trouble’ if it does not sort out succession planning

The insurance industry “is going to be in trouble” in a few years’ time if it does not get on top of succession planning.

That was according to Jacqueline Girow, executive director at the London and International Insurance Brokers’ Association (Liiba), who said there are other sectors out there “who are doing succession planning very well” and that if insurance firms do not invest in it the “industry is going to get left behind”.

The comments come as the Chartered Insurance Institute’s (CII) New Generation Broking Cohort 2025/26 identified a potential “middle experience gap”.

It raised concerns that the pipeline of professionals in their 30s and 40s may not be deep enough to replace the experience of those approaching retirement.

“Our known known is that we are going to have a load of people retiring and we haven’t been recruiting coming through,” Girow said.

“So, we have got an issue that needs to be sorted out and succession planning sits right smack bang in the centre of that.

“We’re an industry [where] our whole reason is how we help are clients, looking at what the risks are and try to mitigate them.

“So, we know this is going to be a risk, but we’re going to be in trouble in a few years’ time.”

Opportunities 

According to the New Generation Broking Cohort, 84% of 204 insurance respondents expect upcoming retirements to negatively affect technical and client-facing capability.

Yet only 11% said their organisation has a formal, well-established knowledge-transfer programme.

Girow felt that to improve succession planning, firms should turn to those in human resources and bolster this department.

“The best people to start looking at this succession planning are the experts, which is human resources,” she said.

“I see human resources roles probably changing more than insurance roles and if we’re looking to invest, then human resources is the place to invest in.

“They’re the ones who understand people, they understand culture, they understand how firms have to move forward.”

Meanwhile, Ela Metalia, underwriting and claims executive at the International Underwriting Association (IUA), said that trade bodies are offering learning opportunities that are being promoted “as widely as possible”.

“A lot of the training and education we run will be done alongside members companies,” she added.

“So, it will be people that we work with from the various insurers that are offering their time and expertise and they are people that have been in the market for a while.

“It’s a great way to make sure that knowledge is being transferred to people that are entering the market or are within their first couple of years.”