Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

Insurers expect highest pay rises in 2021

Open-access content Wednesday 9th December 2020
Insurers expect largest pay rises in 2021

Insurance companies expect to raise their wages at a higher rate than firms in any other sector in the UK next year, according to research by Willis Towers Watson (WTW).

The study found that insurers anticipate average pay rises of 2.9% in 2021. The next most optimistic firms are FinTechs and business and technical consultants, both on 2.8%.

Overall, UK private sector workers are set to receive average pay rises of 2.4% next year, up from average increases of 2.2% this year.

The number of firms expecting to freeze pay is also predicted to fall sharply next year, in a further sign of cautious optimism for 2021. 

This year saw a third of private sector companies freeze pay increases in an effort to curtail costs during the COVID-19 crisis, but this is expected to fall to just over 3% of companies next year.

“The differences in how companies were impacted by the pandemic are likely to be heavily reflected in pay rise levels,” said Keith Coull, senior director in WTW’s global data services business.

“Not all industries have been impacted in the same way. While many technology and banking firms have been successful due to their ability to aid digital acceleration and financial liquidity, companies in the hospitality, leisure and airline industries have suffered.”

WTW's research involved a survey of companies in 130 countries, which received 18,000 responses.

The findings reveal a similar picture emerging across Western Europe, with most organisations in the major economies anticipating higher pay rises in 2021 than this year. 

The largest increases are expected in the Netherlands, Germany, Italy, France and Spain, on 2.5%, 2.4%, 2.1%, 2% and 2% respectively.

“We are also expecting many companies to be differentiating their allocation of pay rises, so that they can provide meaningful salary increases to their best and most valuable talent and prioritise spending on jobs that are likely to contribute the most to success or survival next year,” Coull added.

 

Image credit: iStock

Author: Chris Seekings

You may also be interested in...

UK car insurers save over £4bn in 2020

UK car insurers save over £4bn in 2020

UK car insurers saved more than £4bn this year as a result of changes to driving routines caused by coronavirus lockdown measures, estimates by hello-safe.co.uk suggest.
Monday 21st December 2020
Open-access content
Mandatory climate-related financial disclosures announced

Mandatory climate-related financial disclosures announced

Pension schemes, insurance companies, asset managers and banks will all be forced to disclose their financial exposure to climate change by 2025 under new rules unveiled by the UK chancellor Rishi Sunak yesterday.
Tuesday 10th November 2020
Open-access content
Vietnam's general insurance market to stagnate in 2020

Vietnam's general insurance market to stagnate in 2020

The growth rate of Vietnam's general insurance market is forecast to plummet by three-quarters this year as a result of the economic slowdown caused by the COVID-19 pandemic.
Tuesday 17th November 2020
Open-access content
Most companies to review ESG measures in executive pay plans

Most companies to review ESG measures in executive pay plans

Four in five organisations worldwide are planning to change how they use environmental, social and governance (ESG) metrics in their executive pay plans over the next three years, a survey has found.
Wednesday 16th December 2020
Open-access content
Dormant pension wealth surges to more than £290bn

Dormant pension wealth surges to more than £290bn

UK savers have more than £290bn held in dormant pension pots where no contributions or withdrawals are being made, which is over double the figure recorded when auto-enrolment was introduced.
Tuesday 17th November 2020
Open-access content
Women more likely to miss out on retirement guidance

Women more likely to miss out on retirement guidance

UK women are nearly half as likely as their male counterparts to know that they are entitled to free and impartial pension advice, research by Just Group has uncovered.
Tuesday 17th November 2020
Open-access content
Also filed in
News
Topics
General Insurance
Finance
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ