Opinion: Milburn’s report is a spotlight – but UKGI must brainstorm the answers

With the launch of Insurance Times’ Destination Insurance campaign in October 2025, centred around supporting UK general insurance (UKGI) to mitigate sector specific talent challenges and improve industry talent pipelines, we were responding to a mountain of anecdotal and empirical evidence that pinpointed talent attraction, retention and development as a serious market-wide problem.

However, insurance is seemingly just one facet of a much larger talent conundrum in the UK, as highlighted by politician Alan Milburn when he published an independent review in May 2026, commissioned by the secretary of state for Work and Pensions.

Designed as a “discovery phase” to scope out the scale of a specific talent challenge, Milburn’s Young People and Work interim report focused on the whys behind the growing volume of young Brits who are not currently in education, employment or training (Neet). This publication is set to be followed by a “solutions” centred report.

Milburn does not pull any punches within his work, identifying artificial intelligence (AI) driven recruitment practices as a blocker to embracing young candidates, while employer hesitation and nervousness around hiring and supporting the next generation is leading to a supply and demand imbalance in the labour market.

He summed up: “The conclusion I have reached is stark. Britain has institutions for young people, but it does not have a participation system that is capable of taking young people from the world of education into the world of work.

“The labour market does not provide enough early entry opportunities. The education system produces qualifications but does not guarantee transitions. The bottom rungs of the career ladder have been kicked away.”

The messages in Milburn’s report resonated strongly with insurance commentators and instigated head scratching on how UKGI can contribute to turning this talent tide.

For example, Branko Bjelobaba, principal at Branko, told me that “too many junior roles [are] being replaced by tech solutions and offshoring”, which he finds “concerning”.

He believes that although the industry’s “plethora of trade bodies” are individually doing good work to engage neet talent, much of this is being done “to secure the best talent just for themselves” as opposed to proactively futureproofing UKGI roundly.

Bjelobaba advocated for more “joined up thinking and action”, such as shared work experience opportunities across UKGI subsectors and firms, as well as flagged the positive role of recruiters – if they could look beyond “fab commissions” to better help young people transition into first jobs.

Caroline Wagstaff, chief executive at the London Market Group, added that the “tsunami of applications” for jobs was a dangerous minefield, where the siren call of AI is incredibly tempting for human resources professionals.

In her mind, more intentional and narrowed down hiring is the solution and helps swerves the fact that incredibly inclusive job adverts often have an unconscious bias towards those that have “been through a coached process”, including training on how to write a cover letter, for example.

Wagstaff added that UKGI could also learn from other industry sectors, such as engineering or real estate, as many areas of the economy are looking to tackle similar talent challenges.

Milburn’s report has been a useful tool for describing the relationship between neet individuals and work, however the meatier part two of this review series is still to come, ringfencing possible ways forward and plans for improvements.

I do not envy Milburn this task, but I am incredibly proud that Insurance Times is playing its part with the Destination Insurance campaign and charter. UKGI cannot afford to sit on the sidelines and watch as swathes of our talent retires. It is up to each of us to take consistent, thoughtful action to drive positive change.

What can you contribute to UKGI’s talent futureproofing process?