Building your Permanent talent strategy in 2026

Permanent hiring remains a central focus for London Market insurers heading into 2026, but the priorities have evolved significantly. 
While AI continues to dominate strategic conversations at board level, the day-to-day hiring landscape is far more grounded. Insurers are concentrating on what truly keeps their organisations running: strengthening cloud environments, improving data quality, building operational resilience, and integrating new SaaS platforms in a meaningful and sustainable way.

Cloud, Infrastructure, and Data remain the backbone

Modernisation programmes across the market still depend heavily on robust cloud and infrastructure capability. Insurers are navigating hybrid estates, upgrading underwriting and claims platforms, and working to improve stability across core applications. Permanent technical hires in these areas are no longer optional; they are fundamental to reducing operational risk and ensuring business continuity.

A similar shift is happening within data teams. Instead of building large, AI-specific units, many insurers are prioritising foundational work: enhancing data pipelines, strengthening governance, improving lineage and controls, and ensuring that the organisation can trust the data it uses. These capabilities are essential not just for future AI adoption but for everyday decision-making. Talent that brings structure, clarity, and consistency to complex data environments remains in high demand.

AI is influencing hiring, but not reshaping teams yet

AI is absolutely shaping the conversation, but it has not yet redefined the structure of permanent technology teams. Most insurers are experimenting through vendor-led solutions, targeted pilots, and early exploration rather than standing up fully-fledged internal AI product groups.

As a result, AI’s greatest influence on hiring is indirect. It reinforces the need for strong data foundations, resilient cloud environments, and solid governance, all of which require permanent, stable capability. The individuals hired today will be the ones supporting and enabling AI adoption when the market is ready to scale more aggressively.

Security and Governance embedded into everyday delivery

With the continued expansion of cloud usage and the rapid rise of SaaS tools, cyber security can no longer be treated as a separate oversight function. Insurers are increasingly embedding security and governance into engineering, platform, and data teams to ensure regulatory expectations are met without slowing modernisation.

This shift means permanent hires need a blend of technical skill and risk awareness, even if their titles don’t explicitly reference security. Those who can bake secure practices into everyday delivery are becoming essential to long-term resilience.

Market pressures defining hiring in 2026

The pressures seen at the end of 2025 are still shaping hiring behaviours. Approval cycles are lengthier, interview processes more rigorous, and each new role is justified with far greater scrutiny. While retention remains a key consideration, counter-offers are less aggressive than in previous cycles; instead, insurers are prioritising long-term value and clear alignment with business outcomes.

Candidates also continue to expect clarity, well-defined roles, progression pathways, and stable hybrid working patterns remain strong differentiators in attracting high-quality talent.

Looking ahead

In 2026, the most valuable permanent hires will be those who strengthen technical delivery, stabilise platforms, and support enterprise-wide transformation. Insurers that communicate clear expectations, articulate role impact, and maintain efficient hiring processes will be best placed to secure and retain the talent capable of driving sustained operational success.

Building your Permanent talent strategy for 2026

As the market becomes more selective and the expectations on permanent hires continue to rise, partnering with someone who understands both the technical landscape and the unique dynamics of the London Market can make all the difference.
If you're planning to hire permanent cloud, data, engineering, or transformation talent, or seek guidance on shaping a long-term hiring strategy, connect with Alex Holliday, Director of Permanent Recruitment for the London Specialty Insurance Market today
With deep market insight and a strategic, outcome-led approach, Alex can help you secure the permanent talent needed to build long-term capability and support the next chapter of your transformation and modernisation strategy.