The UK’s insurance technology sector is undergoing a significant realignment, with job patterns pointing to a sector in transition rather than retreat.

Overall insurance vacancies are projected to fall by 17.4% in 2025, yet the decline masks a broader reorientation toward technology-led growth, according to new research from Avencia and Vacancysoft.

Insurers are cutting back on legacy operations while stepping up digital investment, driving a 14% rise in IT vacancies, which will account for 35.5% of all roles next year, up from 28.5% in 2024.

Much of the hiring is focused on areas such as data science, cybersecurity and automation, as companies look to modernise infrastructure and deepen their technology partnerships. Customer service roles, by contrast, are being steadily pared back.

Policy initiatives such as regulatory sandboxes and R&D tax incentives are helping to accelerate the shift, according to a new report by recruitment consultancy Avencia and labour market analytics firm Vacancysoft.

Early signs of the transition are already visible. In the first quarter of 2025, insurance sector hiring rose by 6.1% overall, while IT roles surged 27.7% quarter on quarter.

Northern Ireland Emerges, London Holds Ground

London continues to lead as the UK’s insurtech hub, with 2,172 IT roles forecast in 2025, an increase of 11.9% on the previous year. But growth is spreading. Northern Ireland is seeing the fastest expansion in relative terms, with IT vacancies expected to rise by 216.2% to 117 roles, lifting its share of national tech hiring from 0.8% to 2.3%.

The North of England and the Midlands are also expanding, with projected IT hiring increases of 26.9% and 15.6% respectively. Scotland and Wales are holding steady, while the South of England is expected to see a modest decline.

The trends suggest insurers are increasingly tapping into regional tech ecosystems as they look to build cost-effective and scalable talent pipelines beyond the capital.

Data Skills and Delivery Roles in Focus 

Within the evolving insurtech workforce, demand is strongest for data-driven and delivery-focused roles. Vacancies for data engineers are forecast to grow by 27% to 240, while roles in data analysis will rise 23.4% to 306.

Project management positions are expected to see the sharpest growth at 48.2%, an indication that digital transformation programmes are moving from planning to execution.

Business analysis continues to trend upward, with an 8.7% rise to 312 roles, though its overall share is beginning to taper.

Product owner roles are stabilising, accounting for 3.7% of the total. Collectively, these changes suggest a pivot from ideation and experimentation to scaled delivery, infrastructure modernisation and operational impact.

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Insurers Lead Charge in Building Digital Capability

Several major insurers are at the forefront of the recruitment drive. Aviva is expected to top the IT hiring league table with 420 projected roles, up 13.5% year on year. Royal London is growing at an even faster pace, with IT roles set to rise 67.1% to 234, fuelled in part by increased investment in artificial intelligence.

Howden continues its aggressive digital expansion, with IT hiring forecast to rise by 75.5% to 165 roles.

BGL Group, now part of Markerstudy, is the fastest-growing among major firms, with IT roles expected to more than double, a 114.3% increase. AXA, meanwhile, plans to scale back by 47%, consolidating after a period of sustained tech investment.

The picture that emerges is one of a maturing digital insurance sector that is leaner, smarter and more reliant on data and automation. As transformation strategies move from concept to execution, hiring patterns reflect a new phase of operational discipline and long-term digital intent.