There has been a 70% uplift in re/insurance Non-Executive Director (NED) remuneration since 2018, according to a recent report by Damhurst, an executive search firm serving the global re/insurance community.
The report provides NED remuneration data for several insurance industry segments including mutuals, MGAs, Lloyd’s Managing Agents and brokers. It also distinguishes remuneration details between chairs and non-chairs.
On average, the report found, re/insurance NEDs were paid £93,500 in 2022 which equates to £2,800 per contracted day. This remuneration was based upon an average of 33 days contracted work, the firm noted.
Damhurst stated that this uplift is partly due to inflation and the increase in the number of days contracted. The upturn in contracted days reflects the continued increase in regulatory scrutiny and the resultant additional workload falling upon the NEDs.
The survey also pointed out that NEDs estimate they still devote on average seven more than their contracted days to their individual boards.
The pursuit of greater board diversity is another key driver for uplift, the report found, which also could explain the increase in remuneration.
As part of this diversity, there has been evidence of more female directors, and those from outside the industry. 25% of the respondents were female, which according to Damhurst, reasonably reflects the average insurance board composition, who were paid on average 9% more than their male counterparts.
Simon Beale, Head of Board Practice at Damhurst said: “The latest Damhurst NED Remuneration Report provides a much needed, current reference point for NED compensation which is critical if the insurance market is to continue to attract and retain the best talent on its boards.
“We consider our advisory expertise to be a significant part of our role in assisting clients in finding the most appropriate NEDs for their Board. This report supplements that advice.”
Finally, the survey also highlighted some of the key themes raised frequently at boards in 2022. A combination of staff retention, recruitment and lack of talent were significantly the most raised topics.
Other themes regularly mentioned according to the report included: ESG, regulatory demands and inflation.