If you read the economics headlines you would assume that the disaster predicted for Europe spells doom for Australia’s employment market. However, the real employment picture is far more nuanced than that.

I sometimes wonder whether the headlines become a self-fulfilling prophecy: they spell disaster and everyone gets nervous and stops hiring. By contrast, my assessment of insurance roles isn’t that bad. I’d say it’s patchy with a few rain showers for the coming year. Here’s why.

For insurance jobs over the long term, the government’s Job Outlook website provides some solid information. Its forecasters say turnover and unemployment in insurance (grouped alongside “money market” and “statistical clerks” as a profession) are about on par with other sectors. Although the experts rate growth prospects for the next five years as minimal, the better news is that the industry is expected to grow at 24.8 per cent over the next 20 years.

Claims people matter (a lot)

I agree with the longer-term appraisal. Compared with 2010, last year I saw strong growth in insurance claims roles at intermediate level across the general insurance sector and across all product lines, with a focus on personal lines (motor, home and travel) and personal injury insurance (liability, accident, health  and workers’ compensation).

By intermediate level I mean the claims decision makers – the people who accept, evaluate and manage the insurance claims processes for a portfolio of customers. If you have more than three years’ experience in this field, you will be sought after.  Although there is some demand for senior claims and advisory roles, there is more of a market for hands-on staff.

With climate change predicted to increase the frequency of extreme weather events such as bush fires and floods, I see the demand for claims roles increasing moderately, but not dramatically. With the recent spate of natural disasters, the cost to the industry has been huge, but insurers may not feel the impact immediately because they have reinsurance. The longer-term effect, however, as reinsurance arrangements are renegotiated, will be increased customer premiums.

Offshoring may prove unappealing

The insurance industry is looking to reduce costs, so some large insurers are outsourcing administration and claims roles offshore, and some have recruitment freezes. Is this a long-term trend? Who knows!

Although there is an immediate cost off the bottom line when Australia-based headcounts are reduced, companies that have outsourced large-scale services often find that their customers complain. Given that people who make claims are often stressed, you could reasonably expect an increase in complaint levels because of offshoring.

Insurance is a grudge purchase. The only time people evaluate the service they have is when they use it. So a poor experience at claims time could well translate into a higher rate of customer attrition. Outsourcing overseas may actually backfire and insurance jobs may return to Australia at some point in the future.

Looking at other insurance job functions, I see steady demand in workers' compensation roles as a statutory insurance class. There has been an increase in the volume of workers' claims. Although insurers are doing their best to provide a manageable caseload for their staff, most candidates are ready to gravitate to another line of insurance, and are prepared to compromise on salary to get the right role.

With the strong demand for outstanding claims professionals and a shortage of candidates, I suggest that insurers and claims management companies look at both their salary bands and retention strategies to prevent attrition. There is still demand for insurance underwriters, but the higher demand is for claims staff. Quality claims professionals are finally receiving the attention they deserve.

Liza Garrido, director, Enigma HR