London Market Group unveils proposals for insurance apprenticeship reforms

The London Market Group hopes to grow the UK’s valuable insurance industry and secure it for the next generation. 

The London Market Group (LMG), the trade body for the specialist commercial (re)insurance industry in London, has released a report calling for drastic changes to the way apprenticeships are provided in the insurance sector.  

The Investing In Our Future report was unveiled at the Labour Party Conference in Liverpool on Monday. It calls for important changes to the way the apprenticeship levy works, aiming to create more apprenticeships and make it easier for companies to use their unused levy funds. 

The insurance sector is not particularly known for its apprenticeship provision, unlike more traditional apprentice pathways like construction and engineering. To tackle this, over the last few months, LMG has been working with businesses in the London insurance market to understand the problems they face with the current levy system. These discussions led to recommendations for improvements that could help companies unlock unused funds and hire more apprentices. 

Caroline Wagstaff, CEO of LMG, explained that making the insurance industry an appealing career option for young people, especially those just leaving school, is a top priority. She said:  

“Making specialty insurance a destination career for school leavers is central to the activity of the LMG. In the conversations we have had with market firms, around our Futures Academy and Apprenticeship Discovery programmes, we have heard about the significant challenges that they face in accessing levy funding, with some companies even hiring school leavers but not using their levy funds at all. This is the worst of all possible worlds.” 

To make the apprenticeship levy work better, the LMG suggests these key changes: 

Firstly, allowing levy funds to be spent on all types of training, including skills like communication and ongoing support. 

Secondly, adjusting the amount of levy funding to keep up with inflation. 

Thirdly, creating more flexible training standards to match the needs of modern businesses. 

Next, simplifying how the end points of apprenticeships are handled, so more people complete them and payments to training providers are easier. 

Finally, making it simpler to transfer unused levy funds to other organisations. 

These changes would help companies hire more apprentices and prepare young people for careers in this industry.  

The London insurance market is a major part of the UK’s economy, employing 60,000 people and contributing almost £50 billion every year (the yearly salaries of all the nurses and midwives in the NHS three times over). This market is also the largest insurance hub in the world, earning $160 billion annually, with almost 75% of that money coming from overseas.  

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Josie Geistfeld Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk