As a contractor you may be wondering if the dwindling number of available interim roles will continue and whether a permanent role is a better route? Or you may be looking forward to the coming focus on Pillar III and biding your time for the next wave of hiring to emerge.
State of Play
If you are to consider the market as a whole, in its present state, there remains a lot of confusion around the implementation of Solvency II. Every insurer has its own set of issues, largely driven by budgetary and time pressures in order to achieve eventual compliance with the supervisor. Tim Breedon of Legal and General, who will stand down from his role at the end of the year, said UK insurers were growing increasingly “frustrated” at the Solvency II proposals ahead of their planned introduction in 2014. (The Telegraph) 14th March 2012. Tactics are changing according to what each insurer has agreed with the supervisor and that in turn is leading to some clear trends in both contract and permanent placements within the markets.
- 77% of Insurers have decided to build there own Internal models. (Insurance Times–Guide to Solvency II)
- Resourcing for Pillar I and also for Pillar II phases in the industry remains balanced firmly toward permanent hires, with existing contractors tipping over to become permanent.
- Pillar III however, is seeing a cut back in contractors due to resource being redirected back into Pillar I and II, leaving some strong resource available but with weak immediate demand.
- Most insurers will take a minimum of 4-6 months before refocusing on Pillar III challenges, so the next push for contractors may not be until then.
- Insurers are turning contractors into permanent employees causing a large upturn in number of available contractors. There is a temporary over-supply of available resource, for limited permanent opportunities, which we believe will get redressed by the end of Q2.
Unsurprisingly Solvency II is currently an important space to watch; the factors above are just some of the triggers of mass movement within the Insurance arena. This is not only driving serious cut backs but also pockets of demand for new hires whether it is contract or permanent offers. Considering all this, I am very keen to get further views and opinions on this space and welcome all comments or emails regarding your current experience in the market.