Verisk report reveals potential relief for UK labour shortages in key occupations

Verisk, an authority in the insurance industry, has revealed the government’s decision to relax entry regulations for foreign construction workers. This move is expected to significantly increase the pool of skilled labour available for property repairs across the UK. However, Verisk has warned that the effects of this increased labour supply may take time to manifest.  

Verisk’s latest report underscores the advisory issued by the Migration Advisory Committee. This sheds light on the post-Brexit landscape which has revealed shortages in occupations such as bricklayers, roofers, carpenters, and plasterers. The Home Office has taken steps to combat this by adding these professions to its shortage occupation list, therefore streamlining the entry process for workers in these fields. 

Ben Blain, the Head of Property at Verisk, stated, “Relaxing the rules for skilled workers to work in the UK from abroad will be welcome news for insurers and contractors. A shortage of labour has negatively influenced the delays in completing repair work for policyholders. Increases in the cost of materials, oil, gas, and plant have made repairs to commercial and domestic properties significantly more expensive for insurers and contractors alike. The shortage of building materials caused by the war in Ukraine has also added to the challenges faced by insurers and contractors.” 

The Verisk team examines over 50,000 material and equipment price points annually. This data, combined with labour costs, serve as benchmarks for insurers and contractors in negotiating repair costs for properties. Furthermore, Verisk also conducts audit checks on property repairs, with information being made readily accessible to insurers and contractors. 

Ben Blain states, “The data we share with our customers provides a platform for fair and transparent discussions between insurers and contractors. By offering an impartial service for setting repair rates, it strengthens their relationships and streamlines the process. This ultimately expedites decision-making, facilitating the commencement of repairs, and unequivocally benefiting policyholders. The last 18 months have witnessed significant increases in the cost of materials. For instance, the cost of bricks and concrete blocks has surged by 24%. However, there is positive news on the horizon, as the worst of the inflation pressures seems to be receding, albeit without implying a rapid return to pre-high inflation price levels. For instance, bricks that were once priced at 50p each now surpass the £1.00 mark, and a swift return to previous price levels is unlikely. Our service exemplifies how data-driven decision-making can support a range of stakeholders involved in the repair of property. By leveraging the insights we provide, businesses can unlock new opportunities for growth and collaboration.” 

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Emma Cockings Emma is a content editor for Claims Media. Emma is a experienced writer with a background in client-centric personal injury for a major firm. She has attended and reported on multiple brokerage events throughout her career.