Europe’s insurance industry experienced varying shifts in median base salaries between 2023 and 2024, with notable differences among the region’s countries, according to WTW’s compensation surveys. In the Netherlands, we saw the highest salary increases targeted toward junior professional/support roles, with an average increase of 13.0%.
Conversely, in Spain, we saw the most significant increases targeted toward entry-level and senior professionals. The UK’s insurance market paid consistent rises, averaging 5.0% across middle management, professional and support roles (MMPS).
Germany, France and Switzerland recorded average increases at or below 3.0% for MMPS roles, reflecting stable, mature markets. Switzerland consistently offered the highest base salaries in 2024, occasionally doubling the pay of other European markets for more junior roles.
The latest European insurance Talent Intelligence Report highlights the dynamic nature of the talent market in the first quarter of 2025.
As the industry embraces digital transformation, there has been a marked increase in demand for roles in Europe, such as data scientists, software engineers and business analysts. There are many ways organisations can adapt to these changes, including using tools to help manage talent trends, including skills scans and location-strategy insights.
This shift underscores the insurance sector's ongoing transition toward a more technology-driven and data-centric approach. Despite this trend, traditional insurance roles (e.g., claims adjusters, pricing, underwriters, actuaries) remain fundamental, ensuring that core operations continue to underpin the sector's success (Figures 1 and 2).
| Rank order | In-demand jobs |
|---|---|
| 1 | Underwriter |
| 2 | Claims adjuster |
| 3 | Account manager |
| 4 | Data scientist |
| 5 | Business analyst |
| 6 | Project manager |
| 7 | Customer service representative |
| 8 | Accountant |
| 9 | Software engineer |
| 10 | Cybersecurity engineer |
| Rank order | In-demand skills |
|---|---|
| 1 | Financial reporting |
| 2 | Compliance management |
| 3 | Continuous improvement |
| 4 | Documentation and records management |
| 5 | Data analysis |
| 6 | Sales management |
| 7 | Project management |
| 8 | Customer service management |
| 9 | Commercial negotiation |
| 10 | Relationship management |
These trends also are reflected within WTW’s European Insurance Compensation Surveys, with many critical traditional insurance roles, receiving the highest salary increases in the past year (Figure 3).
Within the insurance market, this shift also emphasizes evolving skill requirements, particularly in compliance management, data analysis and financial reporting — all of which are essential to navigating the current complex regulatory environment.
Taking a deep dive into the UK shows what insurance organisations are doing to be competitive in the talent market. Firms in the UK typically differentiate pay by region, with 68% of organisations responding to WTW’s HR Policies and Practices survey, using distinct pay scales and allowances. UK insurance companies are increasingly communicating pay ranges to prospective employees, focusing on pay transparency initiatives. 46% of responding insurance-sector firms committed to disclosing the fully salary range to prospective employees.
As the EU Pay Transparency Directive takes effect in mid-2026, UK organisations are placing greater emphasis on fair pay and pay transparency. Although they are not directly affected by the Directive, many UK companies are adopting this approach across their workforce as best practice.
UK insurance firms are more likely to have performance-based short-term incentive schemes, highlighting the target-driven nature of insurance sector roles. In terms of long-term incentive (LTI) plans, there is a higher occurrence of performance-plan awards in the insurance industry as compared to the broader UK market. These organisations place a significant emphasis on executive benefits, as evidenced by the widespread implementation of restricted stock unit plans, which are used by 92% of participating UK insurance firms.
Notably, insurance organisations in the UK maintain flexible work arrangements, including substantial policies for remote and flexible work hours. This commitment is reflected in the investment in remote work infrastructure, with the median cost per employee being £293 higher than in the wider UK market. This demonstrates employers’ dedication to creating supportive and flexible work environments.
According to WTW’s Benefits Design Practices Report for the UK, insurance organisations demonstrate generous leave and benefit strategies. They are more likely to offer sabbatical leave and provide paid maternity leave beyond statutory requirements. Most insurance firms align their adoption leave policies with their maternity leave benefits.
Insurance organisations are more proactive than other industries in offering paternity leave benefits, with 87% providing paid leave beyond statutory requirements compared to 67% across the broader UK market. While the first two weeks of paid paternity leave are similar, insurance firms are more likely to offer additional weeks at an above-statutory rate, with 52% basing it on a percentage of salary, in contrast to 38% of other organisations.
Additionally, companies in the insurance sector are more inclined to offer return-to-work payments after maternity leave, often as a fixed amount rather than a percentage of salary. They also have robust policies for annual leave accrual and carry forward, reflecting a supportive stance on work-life balance.
Insurance firms take a proactive approach to providing comprehensive risk benefits, including enhanced long-term disability plans. They also offer more generous sick-pay benefits, providing 25 weeks of initial company sick pay at the median, compared to just 13 weeks across all the broader UK market. This commitment to employee wellbeing extends across all length of service, with insurance firms offering, on average, an additional two weeks of sick pay.
Investing in professional development and education is a tool used by many Insurance companies to retain key talent. They typically offer educational assistance, incentives and financial rewards to encourage employees to gain qualifications, supporting courses upfront and providing extra benefits for successful completion.
This focus on continued education reflects a broader strategy to enhance skillsets and ensure employee progression within specific professional careers such as underwriting and actuarial roles. This is seen with the increased demand to offer actuaries robust study support and competitive reward packages to stay ahead in the market, as seen in WTW’s Actuarial Exam Reward Survey.
If we look back across insurance organisations in Western Europe, salary increases were likely to average around 3.5% in the first half of 2025, which included organisations that opted for salary freezes. This trend reflected an overall more muted position compared to the past two years. It also indicated a stable yet cautious approach to wage growth in a competitive industry landscape where companies are balancing the need to attract and retain talent with broader economic conditions (Figure 4).
| Market | 2024 Actual salary budget increase |
2025 Projected salary budget increase |
|---|---|---|
| Belgium | 3.8% | 3.7% |
| France | 3.9% | 3.5% |
| Germany | 4.0% | 3.5% |
| Italy | 4.0% | 3.5% |
| Netherlands | 7.2% | 4.0% |
| Spain | 3.7% | 3.5% |
| Switzerland | 2.7% | 2.5% |
| United Kingdom | 4.4% | 4.0% |
It should be noted that the UK’s projected salary budget increases were 4.0%. This was expected to be lower when actually applied due to the announcements of the increased employers’ National Insurance contributions. WTW’s 2025 UK Employers’ National Insurance Pulse Survey found a 0.5% planned reduction at median in salary budgets for 2025.
Switzerland expected to see the lowest salary increase within the region. This modest growth aligns with Switzerland's stable economic environment, low inflation and the traditionally high baseline salaries. In reality, applied salary budgets between 1.5% and 1.9% are considered high by many Swiss insurance and reinsurance firms. Companies prioritize other forms of employee value proposition, such as comprehensive benefits packages or work-life balance initiatives, to attract and maintain a skilled workforce.
There are diverse economic conditions and strategic priorities within the Western European insurance sector, in addition to the global pressures being felt, as companies navigate evolving market dynamics and prepare for future challenges.
