Insurance Needs and Gaps Analysis

Last updated: 11 March 2026

STATUS: ACTIVE

Commencement date: October 2025

End date: June 2026

Report Published: August 2026

Overview

This project examines how well current insurance qualifications meet workforce needs and identifies opportunities to strengthen training for learners.  

Australia’s insurance sector is changing rapidly, driven by digital transformation, demographic shifts, rising customer expectations, and increasing climate‑related risk. As these pressures grow, the vocational education and training system must keep pace with the skills the sector relies on. Many insurance roles draw heavily from VET pathways, making this a critical pipeline for future talent. 

This project will review the nine insurance‑related qualifications in the Financial Services Training Package (FNS Training Package), assessing their relevance, usage, and alignment with workforce demand. The project will identify strengths, gaps, emerging skills, and opportunities to create clearer pathways into insurance careers. 

Project scope includes: 

  • Analyse how insurance qualifications are currently used across industry and training providers 
  • Identify duplication, inconsistencies, or gaps across units of competency 
  • Propose evidence‑based actions for future qualification improvements aligned with industry practice and regulatory requirements 
  • Validate findings through an Insurance Working Group of sector experts 

This project positions insurance training to respond to urgent skills gaps and provides a strong evidence base for future updates.

Impact

For learners: A stronger evidence base to ensure job‑ready skills that match employer expectations and career progression. 

For training providers: Clearer guidance on qualification design and delivery, aligned with workforce demand and industry change. 

For industry: Data and recommendations to align training with workforce requirements, ensuring clearer talent pathways. 

Background Information

Insurance plays a vital role in Australia’s economic resilience. When people, businesses, and communities face hardship, the insurance workforce helps them recover. 

Digital transformation, shifting customer expectations, regulatory reform, and a rise in complex natural disasters are reshaping work across claims, underwriting, distribution, and risk. The FSO Workforce Plan 2025 also highlights pressing challenges: digital capability gaps, an ageing workforce, and limited readiness to support vulnerable customers. All these shifts underline the importance of ensuring insurance qualifications remain current, consistent, and aligned with the skills employers need.

Consultation & Feedback

Consultation closed on 13 March 2026, and analysis of submissions is underway. Thank you to everyone who provided feedback. The consultation paper is available in the documents tab above.

Consultation

Insurance Consultation Paper

Links

FSO Workforce Plan 2025: Pathways of Impact

The Insurance Needs and Gaps Analysis aligned with several government policies and reforms, including:

Privacy and Other Legislation Amendment 2024

Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024