After the record highs in the global M&A market of 2021-2022 and the frenetic resourcing environment it created, followed the crash of 2023. Deal volumes decreased by 15.8 % from 2022 and 35.5% from 2021’s all-time high (source: Pitchbook). As a result, resourcing internationally in the W&I/RWI space ground to a halt across both broking and underwriting whilst teams assessed workflow and headcount requirements.
As we moved through 2023 there was varying opinions on when volumes would return (a conversation that continues!) and as a result hiring continued to stagnate.
Two areas that continued to trend away from W&I/RWI was contingent risk and tax liability insurance. As we have seen the focus move away from M&A, broking teams continued to see a good volume of enquiries in this space. Hiring as a result maintained a consistent level of activity and we saw some high profile moves internationally as a result.
2024 sees hiring requirements increase
Moving into 2024, we have seen a small increase in the level of requirements in W&I/RWI and a significant increase in tax insurance. Contingent risk focused recruitment is continuing to develop slowly and we continue to work with some of the key brokers and underwriters in this field. It will be interesting to see how these products develop (and resourcing requirements as a result) when the M&A volumes return. In a recent “2024 M&A market outlook” publication, Rowan Bamford, President of Liberty GTS said; “Even when M&A volumes return, we are unlikely to see contraction in these new products, simply because the more they are used, the more users realise how useful they are”.
Talent shortages remain
Regardless of the market conditions one theme remains consistent with 2021-22: talent shortages. We have seen numerous clients target UK law firms in the last 12 months focusing on 4-8 year PQE tax and corporate lawyers to little (or no) success. Whilst there is definitely a shortage of candidates with this level of post-qualification experience, we have seen more candidate engagement in the NQ-3-year PQE range. We have yet to see a flood of candidates through redundancies, those that have happened were absorbed into the wider employment market (law firms, in-house and insurance roles).
General consensus
The positive sentiment gleaned from our client conversations leaves us with a sense of quiet optimism for 2024 and beyond. However, if you are a hiring manager considering recruiting into your team or a candidate considering a move in (or into) transactional risk insurance; be aware the recruitment lead times are longer than in previous years.
Get in touch:
Need help with your M&A Insurance recruitment or to find your next role? Contact Rory MacSween on rorymacsween@srmrecruitment.com or 07960 983331.
FYI – If you’d like to read the full Liberty GTS market outlook, you can do so here: https://www.libertygts.com/article/bright-spots-on-the-horizon-for-m-a-in-2024