UK insurance sector job volumes are expected to fall 17.4% in 2025 – but digital roles are surging as the industry enters a new phase of technology-led transformation.

According to fresh data from recruitment consultancy Avencia and labour market analytics firm Vacancysoft, IT roles will account for 35.5% of all insurance vacancies this year, up from 28.5% in 2024, as firms scale back legacy operations and invest heavily in data science and automation.

In Q1 2025, total hiring across the sector rose 6.1%, while IT vacancies jumped 27.7% quarter on quarter. London remains the UK’s insurtech hub, with 2,172 IT vacancies forecast for 2025 – an 11.9% rise. Northern Ireland is expanding fastest in relative terms, with IT hiring up 216.2%, lifting its share of the UK total from 0.8% to 2.3%. The North of England and Midlands are also seeing strong growth, with rises of 26.9% and 15.6% respectively. Scotland and Wales are broadly steady, while the South is expected to post a small decline.

Among key digital roles, project management is seeing the sharpest rise – up 48.2% – followed by data analysis (+23.4%) and data engineering (+27%). Business analysis and product roles are growing more modestly, according to the data.

Insurers driving digital hiring include Aviva, with 420 IT roles forecast (+13.5%); Royal London, up 67.1% to 234; and Howden, up 75.5% to 165. BGL Group is expected to more than double its IT intake. Axa, by contrast, plans to cut back 47% after sustained tech investment.

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