National Apprenticeship Week 2025: How apprenticeships are shaping the future of work in insurance

National Apprenticeship Week is here! Spotlighting the achievements of UK businesses and their apprentices, this week aims to emphasise the value of apprenticeships and encourage more companies to invest in apprenticeship programmes.  

Despite a rise in apprenticeship programmes, the results of our commissioned People report showed that just over half (57%) of organisations run apprenticeship schemes. Apprenticeships can be key for businesses to score some fresh, new talent who are passionate about the industry and can bring diverse perspectives. In fact, apprenticeships have the potential to revolutionise the insurance industry injecting a new generation of ideas.   

Here, we take a closer look at the apprenticeships market, policy changes, and how these learning programmes are helping to solve some of the biggest challenges the insurance industry faces.  

A look into the apprenticeship market 

Apprenticeships have long served as an alternative route into employment, opening up opportunities to those who might not have undertaken higher education or who are wanting a career change. And as societal expectations have changed and we’ve moved away from the idea of there being one “better” route to career success, apprenticeships have become increasingly utilised by job seekers. In fact, over the 2022-2023 period, apprenticeship statistics for England showed there were over 736,000 people actively completing apprenticeships.  

However, these statistics revealed two important points. First, despite the figure for apprenticeship starts increasing by 0.7%, learner participation decreased by 2.1%. Secondly, the younger generations (under 19s) only accounted for 23.2% of all apprenticeship starts. Not only does this potentially allude to apprenticeships still not being seen as “credible” routes into the industry, but also signals to us that there may still be some work needed to show younger people the advantages of taking this route—which is why National Apprenticeship Week has become so important to highlight the benefits for young people looking to start a career, employees ready to progress in their current role and for insurers to plug skills gaps and grow their business.  

Why is an apprenticeship important? 

Apprentices can kickstart careers, develop talent to progress onto the next level and help businesses to plug skills gaps and grow quickly. But, they also have additional benefits for the wider industry.  

1. Diversification of the sector 

It’s no secret that the insurance industry has historically been viewed as a sector dominated by white, middle-aged men. And while key figures from the Association of British Insurers reveal diversity in the industry is improving overall, there’s still work to be done to catch up with other industries.  

Apprenticeships help to diversify the sector by opening up the insurance industry to a talent pool from a range of different socio-economic backgrounds, encouraging those who may never have thought about working in insurance, to get curious about what careers are on offer. Similarly, with the world of work largely moving to hybrid and remote working models, there’s also increased opportunities for those in different geographical areas beyond London to get into insurance, as their role will be less defined by their location. Flexible and hybrid working to help retain working families and those who may have disabilities or caring responsibilities.  

2. Bridging of the talent gap 

The insurance industry is facing an aging workforce. This is leaving the sector with a talent gap they’re struggling to fill, with some reports estimating that there’ll be a staggering 400,000 workers lost by 2026!  

For young people, apprenticeships offer an alternative, and often more cost-effective, route into a career without attending university or other higher education institutions. This helps to attract a younger generation who are keen to start earning quickly, in turn helping to bridge the talent gap. 

3. Support of retention  

Attracting talent to the industry is just one half of the battle—you also need to keep them!  research from UK Money revealed that in 2023, the financial and insurance sectors had an average turnover rate of 12.8% per annum. With over 1 million people estimated to currently be working in the sector full-time last year, that’s a significant proportion of people to be losing. 

Common issues around lack of career development and direction can be some reasons for a high talent turnover in the sector. However, as was detailed in one of our Checkpoint Corner blogs, retention and recruitment of skills is one of the issues we most frequently see when working with our clients, and is fortunately, something apprenticeships can help with. Apprenticeships offer employees the opportunity to progress and develop in the career they’re already in. With a clear progression path in front of them, structured learning, and having experience in the industry as they learn, employees are more likely to remain in the industry. If your company is struggling with retention issues, it’s crucial to understand what your problem is, and leverage your findings to open doors to innovative thinking and solutions. If you’re not sure where to start, investing in consulting services, like the ones we offer, can get you on the right track.  

4. Heightened industry standards  

Unlike a standalone professional qualification, which focuses solely on knowledge, an apprenticeship has the advantage of developing skills and behaviours, alongside knowledge. This leads to the creation of more well-rounded individuals that have the skills needed and expected to flourish within a workforce, ultimately improving cohesion, resilience, versatility, and awareness. And given Ofsted’s new Chief Inspector acknowledged that the quality of apprenticeships is at an all-time high in a recent report, there’s much to suggest that these learning programmes have the potential to create even greater cohorts of talent than ever before.  

What’s next for apprenticeships? 

With the 2024 Autumn budget making clear a renewed support for apprenticeships, it’s clear that these programmes hold significant value for the economy. The government has pledged to support apprenticeships through targeted industry and wage adjustments. One of the most impactful changes stated in the budget was the Labour government’s decisions to shorten the length of certain apprenticeship programmes.  

While this is not surprising given reports on increased apprenticeship starts for over 25s, the promises the government has made with regards to apprenticeships show an acknowledgement of the youth guarantee they’ve previously spoke on. This is a promise of education, training, and support for every young person in every part of the country, and apprenticeships certainly can help with this.  

Similarly, the cut in duration of certain apprenticeship length times serves as an incentive for younger people to undertake these learning programmes, while still giving them the rich experience and value they need.  

Apprenticeships may not completely solve the talent gap crisis, but by welcoming more talent into the industry at a quicker rate than university or higher education, and develop those already working in the sector, they can’t be understated.  

Struggling to fill the gaps in your insurance business? We are here to help you source and develop the next generation of certified insurance professionals. Get in touch to learn more.