In search of the big one

The pace of change in UK insurance is making the market the most exciting that it has been for many years. As the lines continue to blur between broking and underwriting, recruitment requirements are changing.

The growth of delegated authority underwriting and claims handling and the emergence of virtual insurers, as well as insurers buying brokers are all creating demand for increasingly diverse skills combinations. In these dynamic times, new levels of ability are being wrung from those that work in insurance; for example, as underwriting is no longer something required merely by insurers, the skills sets required for such roles are less fixed than they were even five years ago.

Also, as boundaries blur and talent becomes harder to source, businesses are being creative in how and where they source talent; the move of Brendan McManus from Royal &SunAlliance to Willis serves as a prime example.

Entrepreneurialism is an abounding force that is remapping the insurance landscape. As the new wave of insurance businesses create their own demand, so consolidation is also creating demand at a senior level, especially for people with experience of running firms built by acquisition. However, while fast changing businesses may be exciting for those that run them, roles in such firms may not suit everyone and this is causing movement.

One constant is that highly technical roles are still in great demand, as are general management skills. At a generic level, other abilities and experience that are needed include leadership, change management, project and program management and strategic planning.

In a barrel

While there is a lack of skills at the high and technical ends of the market, there is a converse trend occurring in the middle tier. This glut has occurred because insurers are delayering at middle management level. The danger inherent in this type of candidate is that they have been important cogs in large machines, so the question is raised as to what happens if you take them out of that environment. However, it would be rash to dismiss them as institutionalised 40-somethings and, for brokers looking to set up and run delegated authority operations, this can be a fertile hunting ground.

Whatever way brokers may be looking to diversify their accounts, having the right skills in place is essential in making any successful transition into new business areas. Yet, with change management skills in high demand, brokers may find the traditional methods of sourcing skills fail to deliver the desired results. If a given management role is vital to the expansion of the business, an executive search firm could be quicker in finding a suitable candidate and can be more cost effective in the long run. Brokers will have their own networks of contacts in addition to using recruitment agencies to help them fulfill internal skills needs, though for key management roles a more thorough approach should be considered, especially if these are pivotal to the evolution of the business.

Search firms will conduct comprehensive and tailored research according to a detailed set of requirements. This service will also advise if the type of individual a broker is seeking actually exists. For brokers planning to enter into a new phase of strategic development of their business - be that setting up a new office, a new specialism or delegated authority - searching for the right candidate should be seen as part of the start up cost.

As the market enjoys a flourish of creativity and change, talent is inevitably snapped up. It is of vital importance therefore for brokers to have a strong story to sell the role to an ideal candidate.

Another major factor that cannot be underestimated when attempting to attract a high-level candidate is cultural fit. Nine times out of 10, when people come back onto the market within months of being placed, the reason is cultural incompatibility. The unremarkable but often spoken words "it just wasn't me" or "it didn't feel right" actually hint at a profound dimension to recruitment that should be heeded if it is to be done successfully. That said, for any firm to reach a meaningful assessment of its own culture in isolation is nigh on impossible; an external perspective is vital. Even recruitment firms that can help brokers define what their culture is would seek the opinion of an independent third party specialist to determine their own views. With cultural compatibility being such a make or break factor, it is important to get an objective view of your own firm's culture. Once this becomes clearer, an employer can consider how this can be presented to a prize candidate.

Having a good story to tell can also be a crucial hook. A business has to have a heart and soul, something that candidates would make strong personal associations and attachments to beyond all the professional and business rationale for joining. There has to be something about that firm that has a strong attraction; this could be a charismatic leader but this should be accompanied by a compelling story of how that has benefited the business.

The best policy

Another factor in attracting the right skills is being honest about how much autonomy and strategic input the individual would have. Brokers need to be upfront too about how much equity is on offer; this may not be on the table, though if it can then it will ensure brokers gain access to best-quality candidates.

Those seeking top talent should also paint an honest picture about the issues in the firm. Every firm has them and it does not matter if the firm is not perfect. In fact, because people want a challenge to develop and stretch their skills, being a part of resolving those issues is actually an important way in which they could potentially differentiate themselves as an employee.

Employers tend to put a gloss on issues affecting their companies; it is human nature and they are afraid that the dirty laundry will put candidates off. This is a short-term and potentially costly strategy. Candidates left to discover what they were not told at interview by themselves can be drained of good will at a tentative stage in the relationship, possibly creating distrust and a complete rethink.

A specialist search firm can work with a broker to highlight the issues and less attractive features of their firm. Handled correctly and within reason, the bigger the issue, the greater the opportunity for a potential employee to differentiate themselves. Positions where a candidate would head an already established department that is on budget and consistently profitable can seem boring; it is the roles that have an element of uncertainty or risk that are often the most attractive. For people at a senior level, this challenge gives them the stimulation they seek and the opportunity to use and refine their knowledge and expertise.

Ultimately, while insurance is thriving, that flourishing is raising the skills bar and the requirements of those with the necessary skills. With the right strategy, firms can obtain these skills ahead of the competition and, if a broker has key deliverables for 2008 then they should be engaging with the process now because others are already.

- Marcella Cronin, founder and managing director, Mansion House Executive.