As the demand for Account Executives in the UK’s General Insurance industry increases, we’re seeing more AEs question just how competitive their package is, and whether they can cut a better deal elsewhere. David Carr, Managing Director at Idex Consulting looks at whether AEs working in a traditional firm are being rewarded, and where else they can look.
According to IBISWorld, the UK General Insurance industry employs more than 73,000 people. With a market size of £72bn, it’s predicted that industry revenue will rise over the next five years, and profit margins will be less volatile (as long as there are no other large external factors, aside from Brexit).
As work and revenue increases, so too does the demand for Account Executives (AEs), who are responsible for finding new business, nurturing the sales pipeline and maintaining good working relationships with all clients, prospects and their referral network.
However, as the skills gap in the general insurance industry proliferates and both digitalisation and InsurTech continues to disrupt this sector, AEs must find new ways to maintain client relationships at a distance. Additionally, the introduction of technology is inevitably changing the future of the general insurance industry.
The changing workplace
We’re seeing InsurTech companies flood the market. These new types of insurance companies utilise digitalisation and technology to reduce costs, enhance efficiency and improve productivity from the current model the industry operates on.
As a result they’re able to present themselves as modern, dynamic technology companies. They can attract and retain top clients and talent with their innovation, working environments, flexibility and collaborations. This is a far cry from the 2019 workplace culture survey that came from Lloyds of London, where it was revealed that employees were generally unhappy with their workplace culture, workload and pay packet.
The average salary bracket is going to change
At IDEX Consulting, we surveyed AEs working in the UK General Insurance industry for our 2020 UK Account Executive Insights Report to find out just how competitive AE compensation packages are in the current market. We found that those with three years of industry experience or less had a basic salary ranging from £23,000 to £35,000. For those with four to six years experience, their basic salary brackets rose from £50,000 to £70,000.
As workplace culture is starting to change, so is the way in which AEs are rewarded for the books they manage. More and more InsurTech companies operate on different sales and distribution models to suit their business needs, and are able to reward their employees for the work they do.
The current general insurance landscape offers excitement for AEs - now, we’re seeing the workplace culture and rewards change for the better. AEs are faced with opportunity and choice. You can choose to work with insurance companies that will give them the means and methods to enhance your career.
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