Are the good times ending for Solvency II recruitment?
The deadline for implementing Solvency II has been extended to January 2014. In theory, this should mean the good times continue for recruiters focused on this space, and those with the necessary expertise enjoy an extended period of lucrative employment.
But is the bubble showing signs that it may soon burst? Perhaps.
As we've pointed out before, most of the recruitment for Solvency II related projects is on an interim basis – actuaries can now command around £1k a day, and risk-related roles offer rates of between £700-800.
However, one of the consequences of extending the deadline for implementation of Solvency II is that insurers have become less willing to pay generous contract rates, says Steve Stubbings, managing director of recruiters The Emerald Group.
"Insurers are reluctant to take on interims for Solvency II projects, only to have that expertise exit the company whenever that project is complete," he says. "What we're seeing now is firms transferring permanent staff on to Solvency II projects, and then hiring contractors for business as usual roles – on a decidedly lower day rate than Solvency II-related work. Insurance firms have wised up to keep costs down."
It may be less lucrative to accept a permanent offer, he adds, but the in the current economic climate the job security is an increasing concern.
"There is a trade off from a monetary perspective, but the increased job security and benefits are prompting many contractors to move into permanent roles," he says.
However, some recruiters remain convinced that the power still resides very much with the candidate. Specific experience around Solvency II is still comparatively rare, and candidates still generally prefer the more lucrative interim positions.
"12 months ago, insurance firms would have had no choice but to accept interim placements for Solvency II roles," says Paul Walsh, chief executive of insurance recruiters Acumen Resources. "Now, they're successful in convincing people to take permanent roles around 20% of the time. Candidates are still very much in control."
