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The IDEX Story
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OUR STORY
IDEX Consulting was originally founded as a specialist General Insurance Talent Management consultancy back in 2006, with the mission of developing a professional recruitment business which focuses on adding value to our partners. We have come a long way since those humble beginnings, we now place talented individuals with a broad spectrum of clients across the UK, Europe, Middle East and the US.
We have also evolved, cementing IDEX as a leading Business Growth Consultancy within our core areas. We work with a broad range of clients to advise on the best solutions to achieve their own growth ambitions, drawing on IDEX's expertise across Talent Management, Advisory Services and M&A to achieve these objectives.
And since 2006 our drive to innovate and push boundaries, have the courage to be different so we can always deliver for the businesses and people we work with, has never faltered.
At IDEX, we have consistently developed our offering, adding our Financial Services Sector in 2008 and Legal Sector in 2013, now operating internationally from offices in London, Birmingham, Manchester and Glasgow.
Each of our specialist Consultants & Advisors are true experts in their field, meaning we are positioned to provide you with a detailed analysis of each local market; its trends, changes and challenges. Enabling us to advise our clients and candidates on the opportunities and talent available locally, nationally and internationally.We are different so we do not target our expert Consultants on activity; we focus on results. The key for us is to place the right person in the right job, and by utilising our 4-step methodology to proactively identify the correct solution for a client or candidate, not a quick win outcome.
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SPECIALIST KNOWLEDGE
Access to expert consultants who have years of experience in their niche, across all geographies. -
RESULTS FOCUSED
We are focused on results, not activity, to get the best outcome for you. -
TRUSTED ADVISOR
Each client and professional is provided with a dedicated consultant who provides a 1:1 service. -
GLOBAL PRESENCE
Our international presence enables us to tap into regional and global networks and provide scalable solutions. -
ADVANCED TECHNOLOGY
Our solutions are underpinned by leading edge technology and software to provide extensive data and intelligence. -
M&A SOLUTIONS
Access to specialist M&A consultantswho can provideexpert advice on the M&A market, valuations and current opportunities. -
MARKET INTELLIGENCE
Our research and data driven thought leadership offers strategic solutions and expert advice. -
DIVERSITY FOCUSED
Consultants follow our inclusive recruitment policy to attract a diverse talent pool, regardless of gender, age, faith, disability, sexual orientation or faith.
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START YOUR PARTNERSHIP WITH IDEX
Whether you want to find your dream job, or transform your business...
IDEX are here to help you succeed.
Looking to grow your business?
Looking for your dream job?
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THE IDEX TIMELINE
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2006
IDEX Founded -
2007
IDEX starts to grow -
2008
IDEX launches Financial Services -
2010
£1m turnover achieved -
2011
Our first Awards. -
2012
London beckons... -
2013
The company celebrates! -
2014
Expansion into Legal & further growth -
2015
Birmingham expands -
2016
IDEX turns 10! -
2018
Mergers & Acquisitions -
2019
IDEX adapts and grows -
2020
The pandemic! -
2021
IDEX celebrates 15 years! -
2023
IDEX rebrands!
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IDEX IS FOUNDED BY MATT GREEN.
IDEX Consulting was founded by Matt Green and opened it's first office in Wombourne, South Staffordshire. Originally known as "GI Resource Management", a £50,000 retained project secured for the Wesleyan was our first major project.
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IDEX EXPANDS & RECRUITS MORE STAFF.
Moved to bigger offices in Dudley, West Midlands.Headcount grows to 5 Consultants.Bristol office opened.Annual target was achieved so the business celebrated with an annual sales conference in Las Vegas.
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IDEX LAUNCHES A NEW DIVISION, EXPANDS AND ACQUIRES A COMPETITOR.
Tony Bates joins as an Equity Partner to launch the Financial Services division.Turnover growth of 15% during the 1st year of the recession. Acquired Addenda Search & Selection.
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OUR FIRST £1M TURNOVER YEAR AND ANOTHER MOVE FOR GROWTH!
£1m turnover achieved.Joined the Recruitment & Employment Confederation (REC).Moved offices to Birmingham City Centre.
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IDEX IS NOMINATED BY OUR CLIENTS FOR AN INDUSTRY AWARD.
Finalist at the Recruiter Awards for Excellence 2011, for "Best Professional Services Recruitment Agency".IDEX achieves its growth targets and celebrates with an Annual Conference in Palma, Majorca.
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IDEX EXPANDS INTO LONDON AND LAUNCHES A NEW DIVISION.
David Carr joins as Equity Partner to Launch the London office for General Insurance. Apprenticeship scheme launched to bring new talent into IDEX. Accountancy & Finance division is launched.
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IDEX SHARES THE SUCCESS WITH ALL STAFF.
IDEX achieves record revenue levels and celebrates by taking the entire business to an Annual Conference in Ibiza.
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IDEX ENTERS THE LEGAL MARKET AND EXPANDS ITS OFFERING. RESULTING IN MORE GROWTH AND AWARDS!
London Office hits £1m of revenue in it's 2nd year. Jonathan Turner joins on Equity Scheme to launch the Legal division.IDEX wins "Service Provider of the Year" at the West Midlands Insurance Institute Awards. Team incentive to Las Vegas!
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IDEX REACHES 30 EMPLOYEES AND WE LAUNCH A TRAINING ACADEMY.
Birmingham office moves into a new state of the art building, with significant expansion space. IDEX grows to 30 employeesIDEX Training Academy launched to grow the next generation of talentTeam incentive to Palma, Majorca.
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IDEX CELEBRATES IT'S 10TH BIRTHDAY!
London office expanded. 40 employees in the business.IDEX 10 year anniversary celebration.
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IDEX COMPLETED ITS FIRST M&A DEAL.
Tony Bates spearheads IDEX's first Mergers & Acquisitions deal with an FS client, within the Financial Advice market.
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A NEW WAY OF WORKING FOR OUR STAFF EXPANSION INTO A NEW COUNTRY!
After a consultation with our staff, IDEX introduces a "Dress for your day" policy in order to allow more flexibility and comfort in the workplace. IDEX recruits Stuart McKenna to set up our new office in Scotland, focusing on the General Insurance market in Glasgow and beyond. IDEX Financial Services expands into Scotland with the appointment of Alison MacMillan.
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IDEX ADAPTS TO DEAL WITH THE COVID-19 PANDEMIC WITH AMAZING RESULTS THANKS TO THE EFFORTS OF OUR STAFF AND CLIENT PARTNERS.
IDEX remained 100% open for business throughout the pandemic, adapting to a "Work from home" model and being available for all our clients needs. Despite tough conditions, through a phenomenal team spirit & effort we maintained our 2019 income levels and paid all bonusses due. IDEX launched the "Broker / IFA Growth Program", a revolutionary way of supporting our clients looking to expand, through innovative use of technology led marketing solutions.
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IDEX MARKS ITS 15 YEAR ANNIVERSARY WITH A SIGNIFICANT CHANGE IN FOCUS.
Employee led decision to switch to a permanently flexible working environment, with many staff working from home but with access to our office network. IDEX relaunches as a "Business Growth Consultancy", leveraging our innovative Business Growth Program to assist clients through Talent, Advisory and M&A services. Legal division expands with a physical presence in Scotland and Birmingham.IDEX launches "IX Managed Solutions" to provide Statement of Work services. IDEX acquires Aspects Managed Solutions, with Allison Marshall joining IDEX's Client Partnerships team.
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IDEX REBRANDS!
Read BlogsFor 16 years our mission has been to help businesses grow by being innovative and using unique solutions.We are doing things for our clients that no other consultancy business does, and our new brand now represents our commitment to helping you achieve your goals, by using emerging technologies augmented with human expertise to supercharge your growth.
Read Blogs
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stuart mckenna vlogs Attracting the best people to your business? This works, 100% of the time.
Topic: Attracting the best people to your business? This works, 100% of the time.Recruiting can be a minefield and traditional recruitment methods are unpredictable at best.In this short video, Stuart McKenna (Business Manager – Scotland) outlines our retained and partnership solution. It's the perfect method for your business to attract and retain the best people in the market whether on an individual hire or ongoing basis.
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david carr vlogs IDEX Webinar: The effect of the Coronavirus on business from a Risk Management perspective
IDEX Webinar: The effect of the Coronavirus on business from a Risk Management perspectiveThis webinar covers:What can businesses do in order to offset the damage & potential losses suffered from the Covid-19 outbreak?We will discuss risk management strategies, business continuity planning, claims processing & policy coverage. How do we learn from this?Hosted by David Carr - Managing Director at IDEX Consulting.Panel:Chris Charman - Technical Director at Eqate Risk Services.Phil Edwards - Managing Director at Eqate Risk Services.John Ludlow - CEO of AIRMIC.
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General Insurance IDEX Webinar: How to survive and thrive in a post Covid insurance market
IDEX Webinar: How to survive and thrive in a post Covid insurance marketOur three panelist, Warren Dickson (Non-Exec Chairman @ RBIG Insurance Brokers), Martin Robert Hall (award winning leadership coach) and Nick Tamblyn (IDEX FD & former KPMG Partner & Perkins Slade CEO) for a discussion around how to survive the crisis and thrive once the storm has passed.Hosted by Paul Davey (Business Director, IDEX Consulting), we cover a range of topics including maintaining a positive mind set through challenging times, the effect of the crisis on the consolidation of the market and how to plan in uncertain times.
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General Insurance IDEX Webinar: Client Development in a crisis
IDEX Webinar: Client Development in a crisisPaul Davey (Business Director) is joined by Mike Latham (CEO, Verlingue UK), Nic Brown (UK Sales & Marketing Director, Markel) and Martin Robert Hall (Award winning leadership coach) to discuss client development within the insurance market._x000D_ We discuss a variety of topics around this, looking at the impact of Covid 19, driving a high performance culture despite this through to long term planning beyond the current situation.IDEX Consulting are a talent management consultancy who provide a range of recruitment, outplacement and advisory services to the insurance, legal and financial services sectors.Stay up to date with IDEX Consulting news & events
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richard martin vlogs IDEX Top Tips: What is the cost of a poor recruitment process?
IDEX Top Tips Topic: What is the cost of a poor recruitment process?Welcome to our latest weekly series of short videos, offering “Top tips” based on our unique insight into the job market.In this week's top tip's episode we talk about the negative effects of a bad recruitment process. It's not just the cost of time and money, it's about costing you your brand reputation.
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Client How IDEX enabled £56.7m business Clear Group boost revenue and growth
With climate change destabilising once-reliable areas, to global conflicts, the last few years have been challenging for the insurance industry. In spite of this, M&A activity in the specialism continues to be the next step for many businesses. Deloitte report that “demand in the broker segment remains consistent year-on-year” (Deloitte: 2023 insurance M&A outlook: balancing uncertainty with optimism) with Clyde & Co partner Eva-Maria Barbosa agreeing: “In the face of stark economic pressures – inflation, rising energy costs, and looming recession – insurers remain focused on growth opportunities” (Insurance business: 2022 Insurance M&A hits highest growth rate in 10 years). Having acquired businesses in the last few years, Heath Crawford & Foster (HCF), insurance brokerage, approached IDEX with further expansion in mind. Founded by Paul Weinberg in 1982, HCF spans Heath Crawford & Foster Ltd, ABA Insurance, and Merenda & Co Ltd. Within the last three years the company’s stature has doubled, standing at an impressive £18 million in gross written premium. Meanwhile, UK based chartered insurance broker Clear Group were on a similar growth trajectory and were looking for partners to support them with their growth objectives.The deal saw Paul Weinberg and his fellow directors bringing a 34-strong team to Clear Group. Providing commercial insurance and employee benefits solutions to a range of sectors including household, motor, fleet as well as after the event insurance, the business was ready for their next step. Below, we detail our approach to facilitating the exciting yet formidable partnership of two key insurance players.Our approach Foremost, our main objective was to work with HCF and Clear Group to establish their needs, understand their vision, and factor-in their long-term goals. We spent a considerable amount of time with both companies to better understand their ethos and values. Once established, the work of carving the best deal for both companies could begin. “As M&A specialists, we understand that a successful deal is built on more than attractive figures for those businesses involved. IDEX works diligently to preserve the ethos, cultural values and long-term ambitions of whoever we work with, while also ensuring they’re equipped with the capital to drive their brand into an exciting future” comments Colin McKenna, Client Solutions Director at IDEX Consulting.Working closely with both businesses was a priority for us. The deal involved multiple parties, considerable capital, and complex financial and legal requirements, therefore ensuring all parties were engaged and worked well together was key. Since our solution is based on pairing businesses whose values and cultures are compatible - as opposed to blindly following favorable numbers - the transition was ultimately a seamless one.Why they chose to work with us Between them, our consultants have 80 years of knowledge and experience, and this has been paramount when inevitably high risk decisions have to be made. Our in-depth knowledge of the market, established network of over 1,800 UK brokers and track record of success, means companies who work with us are left with no doubt about the advice they’re given or the decisions they make. “IDEX continue to demonstrate their skill in sourcing and introducing high quality broking businesses that are aligned strategically and culturally with Clear. Buyers and sellers interests are fully understood and well managed throughout the process, leading to very successful outcomes for all parties” says Paul Beck, M&A Director, Clear Insurance Management.Furthermore, our tenure in the market has resulted in enhanced credibility; we’re honored to hold a solid reputation with the completion of 12 complex transactions this year for some of the UK’s leading insurers. Our commitment to building longstanding relationships means the process of matching companies results in a likeminded symbiosis. Using our wealth of expertise allows us to get under the skin of the business, understanding what the seller is looking for and paving a way to achieve whatever goals they set out to meet.The partnership of HCF and Clear Group is testament to this. Paul Weinberg acknowledges: “I’ve followed the Clear journey for many years and have always been impressed by its people and the way they do business. Joining forces with Clear now is absolutely the right thing for the growth and future of the Heath Crawford Foster business” with reports agreeing, “This latest acquisition aligns seamlessly with Clear Group’s ongoing commitment to building a robust and sustainable business platform” (Reinsurance News: Clear group expands its reach with acquisition of Heath Crawford & Foster holdings ltd).The results Heath Crawford & Foster has doubled in size. In 2022 Director Paul Weinberg told Insurance Age that the plan was to double again by 2027, and partnering with Clear Group has certainly facilitated this goal. With offices in Watford, Manchester and Southend, the merge has enabled HCF to enter new market locations, establishing their brand and presence across the UK. To add to a growing presence, HCF have developed their proposition and reputation and are quickly becoming thought leaders in their field. For advice on selling, or finding the right partner to take your business to the next level, contact Colin McKenna, Client Solutions Director at IDEX Consulting. Sources:Deloitte: 2023 insurance M&A outlook: balancing uncertainty with optimismInsurance business: 2022 Insurance M&A hits highest growth rate in 10 yearsReinsurance News: Clear group expands its reach with acquisition of Heath Crawford & Foster holdings ltd
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client blogs The changing landscape of M&A in the Legal sector
Mergers and Acquisitions (M&A) activity has historically been a less active and competitive area of the legal sector, especially compared to other industries, such as wealth management or insurance. Although larger corporate transactions would typically be announced due to their high-profile impact, many law firms looking to merge or acquire have always progressed in relative privacy, supported by a carefully managed PR strategy. However, over the last few years post the pandemic, M&A deals for legal firms has increased, with global mergers, such as Clyde & Co and BLM and smaller deals, like Howard Kennedy and Corbett & CO, hitting the headlines. In fact, research by Hazlewoods, independent accountancy and business advisory company, found that, “the number of law firm mergers in the UK has jumped 23%...from 99 in 2021 to 122 in 2022” (Hazlewoods: Law firms using mergers to shed excess office space). Given the challenges brought on by the financial climate, operating costs and mounting pressures to repay the government’s COVID scheme, it’s not surprising that firms are looking at ways to drastically improve operational activity, advance their growth and stay competitive. According to research, as we approach the second half of 2023 the uptick in dealmaking is only set to accelerate. “Many firms are recognising that if they want to grow at pace, organic growth might not be enough alone. Growing by acquisition provides law firms with considerable opportunity to gain market share, invest in innovation and attract new talent with enhanced compensation”, says Matt Green, Founder and Chief Executive Officer of IDEX Consulting.So, with enthusiasm clearly high, what factors could continue to drive M&A transactions across the profession and what might it lead to?A saturated market With the number of law firms across the UK increasing, especially with the entry of smaller businesses and high street practices that service private individuals and local areas, the market is becoming extremely competitive. Smaller businesses often have to spend a great deal of time attracting new clients, sometimes to the detriment of the quality of service they provide to current clients. According to Thomson Reuters, “it’s becoming harder for many law firms to differentiate themselves, with a good deal of legal work being commoditised into standard packages. [There’s also] a new impetus of competition arising from aggressive investments being made in the UK by law firms in the United States that want to grow their share of the market in the UK and Europe” (Thomson Reuters Institute: 2023 State of the UK Legal market).The desire to merge with a larger firm who can take on more administrative and business development activity and invest in resource and talent, is becoming more attractive to smaller firms. Ian Johnson, Associate Partner at Hazlewood, highlights the opportunity for larger businesses, “Consolidator firms looking to scale up or expand their geographic footprint through acquiring smaller firms will find there are a lot of opportunities to do so at the moment”(Hazlewoods: Legal update: Law firm mergers fall but deals are set to bounce back).Growing costs The cost-of-living crisis, rising energy bills, and other socio-economic challenges is having a significant strain on law firms, as they try to balance profitability, increasing operational costs and employee demand for higher salaries. A cost-of-living survey shows that law professionals want financial help from their company but with inflation increasing by around 8%, this isn’t always possible. As law firms look to grow and enhance their profitability, M&A transactions are becoming more of an appealing option. Succession planning The legal profession faces an ageing population of owners, with many private practices led by professionals who are approaching retirement age. Naturally, leaders at this age may look for financial stability and an exit path. According to the Solicitors Regulation Authority (SRA) who collected data across the UK from approximately 186,890 law professionals working in 9,677 firms, 13% of all lawyers are aged between 55-64 and 22% are aged between 45-54(SRA: How diverse is the solicitors’ profession?).Private equity investment Private equity (PE) has also been a key influencer for M&A deals with investors looking to build their portfolio and capitalise on new products and businesses. With current levels of saturation and fragmentation impacting law firms, plus growing discussions around succession planning, market conditions present a good opportunity for PE investment. Research shows that investors are looking to buy into smaller boutique firms that specialise in one or two areas, such as commercial, family or employment law. Is it a seller’s market?With many potential acquirers ready with money to invest, there is a huge amount of opportunity for firms to take advantage of a full merge or acquisition, or venture capital funding. According to research, global investment is currently at it’s highest level in history, in fact three times above the 2008 figure(Legal futures: An end to the M&A boom?). This provides a huge opportunity for firms looking to grow, despite the current challenging economic climate.If you’re looking for advice with a potential sale or acquisition, or just an informal, confidential chat, contact Matt Green, CEO of IDEX Consulting onmatt.green@idexconsulting.comor 07974 859 860. SourcesHazlewoods: Legal update: Law firm mergers fall but deals are set to bounce backHazlewoods: Legal update: Law firm mergers jump 23% from 99 to 122 in past yearHazlewoods: Law firms using mergers to shed excess office spaceHazlewoods: Legal update: Mergers and acquisitions in the legal sector Lawyer monthly: The legal sector’s revolution will not be televisedLegal futures: An end to the M&A boom?Norton Rose Fulbright: M&A Outlook 2023SRA: How diverse is the solicitors’ profession?
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client blogs Flexible Working Bill: what you need to know
It’s been 27 years since the Employment Rights Act changed the UK’s work environment, and spring 2024 will see the first significant amendments to the bill come into effect. From summer this year UK workers will be able to request flexible working from day one of a new job. Currently, employees must be employed for at least 26 weeks before they’re able to make a flexible working request. Changes also include: Permission to make two statutory requests in any 12 month period, as opposed to the existing one request Businesses will need to respond to requests within two months, rather than the current three months deadline Employers will need to consult with an employee before rejecting a flexible working requestWhat’s more, the amendment will require employers to provide a substantial reason for any flexible working request rejection. While this may not seem like a huge stride for some businesses, there are otherwise no consultation requirements under the current policy. The new flexible working act covers working hours ranging from part-time, term-time, flexi-time and compressed hours, as well as the adjustment of start and finish times to support work and home responsibilities. Alongside impacting the when for employees, the bill also impacts the where, taking into consideration location of work.People Management report the policy does not create an automatic right to flexible working. In essence, the only thing the bill guarantees for employees is the right to request flexible working. It’s important to note that it doesn’t amend the existing statutory grounds for refusing a flexible working request, such as: The burden of additional costsDetrimental effect on ability to meet customer demandInability to reorganise work among existing staffInability to recruit additional staffDetrimental impact on qualityDetrimental impact on performanceInsufficiency of work during the periods the employee proposes to workWhy it’s important According to research from the Chartered Institute of Personnel and Development (CIPD), “6 percent of employees changed jobs last year specifically due to a lack of flexible options, and 12 percent left their profession altogether due to a lack of flexibility within the sector. This represents almost 2 and 4 million workers respectively”. They go on to report, “65% of employers provide some kind of flexibility to their front-line workers. However, there’s significant unmet demand from workers for more flexible hours arrangements, such as flexitime, term-time working, compressed hours, job-sharingand annualised hours” (CIPD: Flexible and hybrid working practices in 2023).The numbers are clear, professionals across sectors continue to prioritise flexible working, with many choosing to leave their role altogether if these needs aren’t met. Our 2024 Salary, Benefits and Skills Guide findings show 60% of employers plan to recruit in the next 12 months, and 45% of employees are considering changing jobs, so demand for talent remains high. The ongoing war for talent will hit businesses who do not provide flexible working options. Whilst flexibility is key, it’s important that it works for both employer and employee to ensure business delivery is not affected and customer expectations are still managed effectively. Wired report, “The government decided against more radical proposals that would have brought about a significant legal shift, such as requiring all jobs to be flexible by default", says Colin Leckey, a partner in the employment team at law firm Lewis Silkin. "Employers can still say no to flexible working requests on the same basis as before, although they’re encouraged to deal with them more quickly and efficiently and have a more positive attitude to them"(Wired: The UK’s new flexible working law falls short).Provide clarity and encourage honest conversations Research published last year by coaching service Careering Into Motherhood found that 38% of working mothers had not asked for any flexible work, with 46% believing that asking for it impacted future opportunities for promotion (People Management: 2023 Working mums fear ‘fake’ flexibility as two fifths complete work tasks out of hours, study finds). To add to this, another study by Timewise found that while nearly half of UK workers would like to take advantage of the new rights to flexible working, 21% wouldn’t request it, and 30% remained unsure (Timewise: half of workers will consider using new Day One Flex rights. Are you ready?).Putting the strength of the upcoming bill aside, there is clearly ambivalence across the UK’s workforce; there are no prizes for guessing this likely stems from existing stigma. For many businesses there is still work to do to ensure employees feel comfortable in exploring various working arrangements with their employer. It’s essential that employers encourage honest conversations and provide clarity on specific policies to manage expectations, accommodate personal needs and ensure that any request works for the employee, employer and customer demand. For help and advice on your hiring strategy or if you’re considering a new career opportunity speak to one of our IDEX consultants who will be happy to help.Sources:CIPD: Flexible and hybrid working practices in 2023People Management: Everything employers need to know about changes to flexible working lawsPeople Management: 2023 Working mums fear ‘fake’ flexibility as two fifths complete work tasks out of hours, study findsTimewise: half of workers will consider using new Day One Flex rights. Are you ready?Wired: The UK’s new flexible working law falls short
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general insurance General Insurance 2024 Salary, Benefits and Skills Guide
With the release of the 2024 Salary, Benefits and Skills Guide, we’ve compiled everything from the latest salaries for a number of insurance roles, in-demand skills for the profession and expert commentary from our insurance consultants on what employers and professionals need to be aware of this year. What’s happening in 2024With interest rates soaring over the past twelve months, firms have clambered to retain their talent by raising salaries – with most increasing across the board by 15-20%. Naturally, this is not sustainable, so much of the focus this year will be on how businesses can attract and retain talent through means other than compensation. Likewise, the stabilising of salaries will bring less attrition as professionals see fewer opportunities to abandon ship for better pay, bringing with it a trend of lateral movement.As has often been the subject within insurance news, climate change continues to impact the profession – but perhaps not in the way most expect. Rapid climate change affects risk profiles in particular, highlighting a lack of data to price risks accordingly. As a result, brokers look to build data labs in an effort to combat the issue – this promises a new stream of business opportunities in the form of industry convergence through mergers and acquisitions, as well as a wealth of fresh datacentric job roles for the profession.With a projected 50% of the insurance workforce due to retire by 2028, according to the Bureau of Labor Statistics, the war for talent won’t wane in the year ahead. Leading up to the great retirement, findings as far back as the 2019 Labour Market Study by the Jacobson group and Aon plc indicated a strong rise of insurance jobs in the years ahead, projecting a growing demand for underwriting and technology jobs in particular, as well as claims management.The talent war means businesses in 2024 will bid for insurance claims investigators, loss control consultants, brokers, agents, actuaries, customer service representatives, adjusters, regulators, processing clerks, claims examiners and junior and senior underwriters. As mentioned, increasing convergence and digitalisation will also bring a demand for risk management and careers that aren’t traditionally insurance-oriented, such as data science, business operations, marketing and sales.While such high demand is undoubtedly good for those looking to move in the new year, professionals are increasingly focussing on ways to stand out. Similarly, the competition for insurance businesses will continue to be fierce, leading to many exploring alternative ways to attract the very best talent.Our insightsWe surveyed over 100,000 employers and employees across the UK and internationally, compiling accurate data on 600 roles across 40 different specialisms. With sections detailing the most in-demand skills for professionals looking to stay ahead, to data-led sector specific market outlooks and predictions for businesses deciding their next move in 2024, the 2024 Salary, Benefits and Skills Guideis our most comprehensive guide to date.In addition to that, each sector in the guide is underpinned with detailed commentary by our experienced consultants for each of the specialisms in the profession. Sections include Claims, Risk Compliance, InsurTech, UK Retail Broking and more. This offers useful context on the data and statistics collected, as well as shedding light on some top industry tips from the experts themselves.Whatever your goals, our insights will ensure you stay informed for an exciting growth trajectory in 2024. Sign up here for free access to the full report now.
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client blogs 2024 IDEX Salary, Benefits and Skills Guide
Our most comprehensive guide to date, the 2024 Salary, Benefits and Skills guide is here. This year we invited over 100,000 employers and employees across the UK to share their thoughts on salary and bonus packages, in-demand roles and how they are differentiating themselves in the market to attract and retain top talent. Covering UK salary and benefit packages for over 600 roles, the most in-demand skills, as well as the latest training and development solutions, this guide is a must-read for businesses focussing on talent acquisition and retention in the new year. What’s more, our in-depth review of new and emerging workplace trends, alongside detailed employment predictions for the next twelve months will ensure businesses are ahead of the game with their hiring strategy.So what did we find? Well over half of employers surveyed expect turnover to increase over the next twelve months, with 60% stating they’re planning on hiring new talent in 2024.59% also reported a moderate or extreme skills shortage in the past twelve months. This perfect storm of an already noticeable skills shortage paired with increased demand for talent, forecasts a competitive 2024 for organisations across sectors. 92% of employers have offered employees a pay rise in the last twelve months, perhaps due to 78% of the same employers reporting salary-related resignations. Potentially a direct result of the above paired with an already volatile economy, employee retention continues to, and quite rightly should be, on the top of an employer’s agenda. With soaring energy and property costs, alongside rising inflation, employers report a concern that salary increases may not be significant enough to match expectations. So what else can be done? 76% of employers surveyed use their employee value proposition (EVP) as a means to attract talent. In fact, a surprising 18% of those surveyed are trialling, or have trialled, a four day work week. While completely restructuring the work week may be too big a change for the majority of businesses, our report contains some practical ways organisations can drastically improve their EVP and showcase themselves as employers of choice. Here’s a sneak peek:Be transparent around salaries– Perhaps the easiest tactic to implement and yet one with measurable pay-off; not only does transparency help manage expectations, it also helps foster an engaged and positive workforce. A substantial 81% of employees stated their employer is not transparent about pay levels, it’s something businesses should certainly not overlook.Review your benefits package– With the current climate proving challenging for businesses to increase salaries, there are several other ways employers can compete for top talent. Employees continually report flexible working as a top priority. Much like salary transparency, flexible working isn’t necessarily costly to implement but it is a powerful tool for embedding employee satisfaction company-wide.Invest in training and development – 40% of employees report looking for more practical support with their professional development. Given the challenges of an increasingly widening skills gap, up-skilling existing employees is not only a fantastic way to increase morale and loyalty, but a practical way for employers to ensure the skills are there for business targets to be met.But what do these figures look like within specific sectors? Our guide focuses on the General Insurance, Financial Services and Legal specialisms, while also offering detailed insights on verticals like energy and commodities, wealth management, claims and broking. Choose a specialism, find a niche and explore our guide to better position your business for an exciting 2024.Access the full exclusive report here.
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blogs 2024 Insurance M&A outlook
2023 has been a challenging year for businesses across sectors, with insurance being no exception. Climate change has destabilised once easily insurable areas, ongoing wars and conflicts contribute to continuingly rising prices and the possibility of recessions loom over several countries. As a result, M&A took a backseat in H1 of 2023, “squeezed by higher interest rates, [businesses] tightened their budgets. Many insurers shifted towards margin improvement, focusing on cost and strategic growth while de-prioritising acquisitions”(Insurance Business: What are the two most powerful drivers of M&A in 2023?). Yet, 2024 promises better outcomes for M&A for the insurance sector. Deloitte report, “though industry convergence is slow as companies look to strategically rebalance their portfolios, this trend is not expected to hinder the continued move forward” (Deloitte: 2023 insurance M&A outlook: balancing uncertainty with optimism). Below, we explore several factors impacting M&A activity, and what we can expect to see in 2024. A focus on convergence and embedded insurance Insurers looking to offset potential challenges do well to drive strategic partnerships. Convergence between insurers and non-insurance partners creates new streams of income from shared opportunities. An example of this cross-industry insurance trend can be found in tech purchases, where retailers are increasingly offering embedded insurance at point of sale. Deloitte go on to report, “embedded insurance in personal and small commercial lines could exceed $70 billion in premiums in the United States by 2030”(Deloitte: 2023 insurance M&A outlook: balancing uncertainty with optimism). These strategic partnerships strengthen both sides, with the increased cash flows offering more opportunity for mergers. In a similar strategy, insurance companies continue to look for and attract alternative capital. As hedge funds and asset managers take advantage of rising policy prices, consolidation is on the cards particularly for relatively new insurance investors. This is especially evident in the UK, where dealmakers are keen to complete transactions before the January 2025 UK general election, which could see an increase in capital gains tax. The UK and Ireland are expected to enjoy the highest growth in M&A activity next year, according to the CMS European M&A Outlook 2024 (CMS: Turning the corner? European M&A outlook 2024), and business leaders accelerating M&A plans to secure the current 20% capital gains rate, is certainly one reason why. Tighter regulations Dealmakers across sectors have criticised the tighter regulations brought on by Brexit. The Competition and Markets Authority (CMA) has gained greater powers since the change and as a result, potential transactions are scrutinised more closely than before. One article described a “one-stop-shop principle” pre-Brexit, “where [UK] cases referred to Brussels took precedence over reviews in individual EU countries, [but have now] ceased to apply to the UK” As a result, dealmakers face higher stakes and longer waits. This has pushed organisations into paying “more attention to the British antitrust watchdog, the Competition and Markets Authority”(Financial Times: UK and EU divide opens up on dealmaking regulation). Insurers looking to sell or acquire need to pay due diligence to these new stringent regulations, ensuring the costly M&A process isn’t halted. That said, PIB Group CEO Brendan McManus remains confident, describing the heavily regulated UK climate as “never an insurmountable barrier to what we do […] the industry is used to navigating these and thriving within them – it helps maintain best practices”(Insurance Age: PIB’s Brendan McManus on the future of insurance broking M&A). Post Covid assurance While the Covid pandemic may have been disastrous for a number of businesses, for those that have survived, it’s become a merit of confidence. Having proved their resilience, companies that performed well throughout, now approach M&A as sound investments. McKinsey advise “historically, consolidation has tended to follow periods of crisis” (McKinsey: Grow or exit? Overcoming the scale trap in life insurance closed books), and that certainly remains the case post Covid. Shaky geopolitical climates and rising costs may deter some, but for other businesses, taking the leap with acquisition is an investment in security. In a recent survey, global broking and risk management giant, Aon, found that nearly half of dealmakers expect the volume of M&A deals to increase ‘somewhat or significantly’ over the next year. This comes as a response to an otherwise volatile few years. Discussing M&A in the specialism, Jonathan Clark, Vice President of Corporate Development at McLarens notes, “while the market has seen fewer transactions year to date, the level of activity seems to be increasing based on the chatter in the market”(Insurance News: What’s happening with M&A activity in the insurance market?). Cyber will both help and hinder M&A The advancement of cyber over the past few years has led to huge changes in the insurance specialism, both as a growth opportunity and a risk management concern. Digital solutions such as smart technology and artificial intelligence has the potential to increase business value, but also increase cyber-attack risks. Coined ‘big-game hunting’ by cyber criminals, “ransomware is now evolving into a new era, as criminals adapt their strategies to evade security controls, focusing on critical vendors and aiming for larger targets for extortion” according to one recent report (Resilience: 2023 mid-year cyber claims report). Aon go on to report, “These solutions inherently contain unclear boundaries with multiple third-party providers. Digital operating models that are not adequately secured bring increased potential for business value to be destroyed in equal or greater amounts than the value created” (Aon: 2023 Top five cyber threats to M&As). Yet, despite the increasing risks, smart technology and artificial intelligence remain powerful tools for growth; businesses looking to gain market share and remain appealing to potential partners / buyers, shouldn’t ignore them. Looking for advice on the Insurance M&A landscape or keen to explore a new opportunity? Contact our specialist M&A consultant today, Colin McKenna on 07384 548 579 or colin.mckenna@idexconsulting.com Sources: Aon: 2023 Top five cyber threats to M&As CMS: Turning the corner? European M&A outlook 2024 Deloitte: 2023 insurance M&A outlook: balancing uncertainty with optimism Financial Times: UK and EU divide opens up on dealmaking regulation Insurance Age: PIB’s Brendan McManus on the future of insurance broking M&A Insurance Business: What are the two most powerful drivers of M&A in 2023? Insurance News: What’s happening with M&A activity in the insurance market? McKinsey: Grow or exit? Overcoming the scale trap in life insurance closed books Resilience: 2023 mid-year cyber claims report
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blogs What skills do you need as an insurance Account Executive?
Insurance provides financial protection against a wide range of risks and uncertainties. However, navigating the complex world of insurance can be challenging, which is why many individuals and businesses rely on the expertise of an insurance Account Executive.An insurance Account Executive is a professional who works for an insurance company or broker and is responsible for managing a portfolio of clients. Their primary role is to provide advice, support, and solutions to clients to ensure they have the right coverage for their needs and their assets are protected.“Ultimately, the role of an insurance Account Executive is to help clients manage their risks and protect their assets, whether they are a business or an individual. They play a critical role in ensuring businesses have the right insurance coverage to protect against unforeseen events and are able to recover quickly if something goes wrong.We’re seeing an increased demand for skilled Account Executives, especially for those with good commercial knowledge and technical experience. Many clients are currently looking for professionals with strong soft skills where they’re able to offer a consultative approach, ask the right questions in the right way, and be an active listener. All of this will help those in the role to identify opportunities and influence effectively”, says Alex Callinan, Managing Consultant.Key responsibilities Account Executives are the first port-of-call when it comes to claims, renewals and advising a client on the best policy for their lifestyle, needs and budget. They typically need to have excellent customer service and a knack for building relations. They also require extensive knowledge of the insurance landscape and how to best adapt to the needs of the client.A key responsilbity is relationship building, this involves understanding client needs and personal circumstances, assessing their risks and insurance needs, and subsequently developing a tailored insurance solution that provides adequate coverage at a competitive price.To achieve this, an insurance Account Executive will typically spend a significant amount of time meeting with clients, either in person or virtually, to discuss their insurance needs and provide advice and support. They will also be responsible for negotiating with insurance underwriters to secure the best possible coverage and pricing for their clients.In addition to managing existing client relationships, they will also typically be responsible for generating new business. This involves identifying and pursuing new sales opportunities, either through referrals or by proactively reaching out to potential clients.What do you need, to be successful?Communication, negotiation, influencing and relationship building skills are key for this role. Account Executives need to be able to build rapport with a wide range clients and have the ability to explain complex insurance products in simple, and easily understandable language.They must also have a deep understanding of the insurance industry, including the various products and services available, as well as the regulatory and legal frameworks that govern the profession. This knowledge and market insight enables Account Executives to provide informed and accurate advice to their clients and importantly to ensure they are compliant with all relevant regulations and requirements.In addition to these core skills and responsibilities, those in this role must also have strong commercial acumen. This involves understanding the broader business context in which their clients operate, including their competitors, market trends, and economic factors that may impact their insurance needs.The role of an Account Executive is certainly a rewarding one, with no day the same, it offers variation, exposure to lots of different markets and a range of career opportunities. For those who are passionate about developing new business, finding solutions to challenges and partnering with clients and businesses, this career path can be highly fulfilling and rewarding. View our available insurance Account Executive roles. Interested in learning more? Why not chat to one of our specialist consultants who can share more information on our roles and talk to you about your options.
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blogs What to consider before accepting a counter-offer
Counter-offers are becoming widespread in today’s climate, with employers using them as a temporary measure to attempt to retain talent. Interestingly, the Financial Times report this as an ongoing concern with, “40 percent of employers [having] made a counter-offer to try and keep an employee who has received a job elsewhere”(Financial Times: UK employers increasingly resort to bidding wars to retain staff, says survey). In further research, the CIPD state in their Market Labour Outlook report that, “51 per cent of those already using counter-offers as part of their retention strategy say they have increased over the past year” (CIPD: Labour market outlook views from employers). Research shows that counter-offers are most prevalent in London, with 58% of employers based in the capital making counter-offers in the past 12 months. However, there are mixed views on the effectiveness of counter-offers, with 29% of UK employers believing the tactic is ineffective and potentially a short-term option that businesses use to prevent spending money on rehiring(CIPD: Labour market outlook views from employers).With this in mind, it’s important for professionals to be aware of the driving factors behind counter-offers to help them make an informed decision that’s right for their career, goals and lifestyle. IDEX Consulting have produced some key information and guidance to help professionals review their options if they are faced with a counter-offer from a current employer – download our guidance here.We also advise professionals to consider the following:Evaluate your reasons for resigning If a clear motive is the need for a higher salary, it’s important to review why this wasn’t addressed earlier. High performing organisations not only ‘say’ they value employees, they demonstrate this with regular pay reviews, support and development opportunities. One question to ask, “[is] your employer trying to avoid spending time and money on finding a replacement by making a counter-offer or is it indeed a genuine reflection of your perceived value within the organisation?”(Indeed Career Guide: How to handle a counter-offer).While the above may be sobering to consider, the statistics agree; 80% of those who accept counter-offers leave their current employer within six months, and nine out of ten leave within a year. Considering where that extra pay is sourced is also useful. Is it simply an advance on an upcoming pay review? If your reason for job dissatisfaction is something other than pay, or at the very least something alongside pay, sticking with that initial change might be the best option.Consider the impact of accepting a counter-offer“69% of employers believe that accepting [a counter-offer] negatively impacts long-term job satisfaction” with “78% believing candidates turn into passive jobseekers post-counteroffer, and 69% perceiving decreased work commitment” (Gitnux Market Data: accepting a counter-offer statistics and trends 2023). Evidence shows that professionals who accept a counter-offer, remain disengaged with their current employer because their initial reasons for leaving were never addressed. Compare the offerTake the time to compare your options and look beyond the salary. Consider career development opportunities to understand which organisation might be more committed to your personal growth. What training pathways do they offer? Company culture also needs to be a good fit; ensure there is a close alignment between your personal values and that of your employers.Seek advice from professionals With a wealth of experience, recruitment consultants can offer informed, impartial advice. Counter-offers are a common occurrence, your consultant will have certainly guided many through the process before you. They are there to support you throughout your career journey, if you have concerns or worries ask their advice.Take your timeCounter-offers can feel like a pleasant bonus or a conflicting challenge. Make sure you take the time to properly assess your options and different employment contracts. Don’t be pressured into deciding quickly. We recommend asking for at least a day or two before making your decision.For more information on how to navigate counter-offers and / or for impartial career advice, contact one of our expert consultants.Sources:EclipseSoftware: seven counter-offer statistics every recruiter needs to knowFinancial Times: UK employers increasingly resort to bidding wars to retain staff, says surveyGitnux Market Data: accepting a counter-offer statistics and trends 2023Indeed: how to handle a counter-offer (with pros and cons)US Chamber of Commerce: nine reasons your best employees are quitting
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legal blogs Litigation funding: What you need to know
Litigation funding has seen rapid growth and demand in recent years. Pursuing legal claims is increasingly expensive, with fees often being a barrier to prospective plaintiffs. As such, litigation funding, which offers the required financial resources to those that haven’t got it to hand, has been a useful tool for many and has boosted the pool of cases that have been pursued in the legal sphere.According to one report, “the portfolio of law firms has expanded by 53% in recent years, [and with it] awareness and acceptability of litigation finance among lawyers, legal practitioners, and the judiciary […] by 2023, litigation finance will have triggered 41% of legal actions” (Research Nester: Litigation funding statistics report 2023-2035). In their inception, litigation funds were initially regarded with scepticism. Their benefits are, however, becoming more commonly recognised and as the statistics show, have led to a significant increase of activity in the legal specialism. So what’s driving the growth of litigation funding? The right legal environment - Litigation funding has seen favourable legal frameworks in some areas of the legal sphere. These areas have adopted regulatory frameworks and legislation that has made the process clear and accessible. Thanks to legal aid, the litigation funding market has grown exponentially, creating a profitable environment for investors and plaintiffs.Great returns- In successful cases, litigation funding has delivered substantial returns for investors. In practice, once a case is concluded litigation funders receive a portion of the financial settlement or judgment as their return on investment. These cases offer huge returns upon their success, often completely overshadowing traditional investment options. One recent ranking states: “In the UK alone, the top 15 funders wield £2.2bn in assets, according to a report published by RPC in June 2022. This is up 11% from last year and almost double the £1.3bn reported in 2018” (Litigation Funding: The UK and US rankings 2023). As a case study, one article discusses the recent VW ‘Dieselgate’ litigation, resulting in a staggering settlement payout of £193m (RPC: Litigation funders backing class action law suits as they put £2.2bn war chests to work). With some class actions leading to awards running into the tens of millions, they’re certainly attractive investment opportunities.Multi-institutional buy-in- The development of blockchain technology (a mechanism that creates a digital ledger, enabling secure multi-party exchanges) and its implementation, as well as buy-in from private equity firms and hedge funds, has significantly boosted the litigation funding market. “Blockchain is already used by about 3% of the world's population” (Research Nester: Litigation funding statistics report 2023-2035), with increasing buy-in from varying specialisms. Not only does this bring significant capital to litigation funding, but also extensive technical expertise.“As the market has developed, options have become both more bespoke and more wide ranging. Among the highlights from the submissions of our top-ranked funders are a range of innovative structures from single case arrangements, portfolio funding of multiple cases for firms and corporates as well as purchasing claims and law firm financing” says Lucy Rigby, Competition Partner at Hausfeld. The convergence of multiple sectors has allowed litigation funding to rapidly develop from a boutique offering not recognised by the majority of firms, to a recognised legal proceedings pathway, opening the doors for business and capital accruement for the wider legal specialism.However, the rapid growth of the legal offering has come with challenges. Here’s some of them: Risk – Perhaps the main reason for any hesitancy on the part of investors is the possibility that capital invested may not be recovered should a case be unsuccessful. Estimates suggest “90% of cases put forward to litigation funders are rejected” (RPC: Litigation funders backing class action law suits as they put £2.2bn war chests to work), demonstrating just how selective funders are about which cases to back. Likewise, this is why litigation funders are actively and continuously searching for and even seeding new cases. With so much capital chasing the same legal cases, and an objective of delivering high return on investments for their shareholders, the search can be relentless.Lack of standardisation– While some firms have elected to introduce frameworks on their own backing, there are currently no wider regulations for funding conditions, fee structures and reporting practices. As a result, investors looking for clarity and comparability across various financing opportunities may be dissuaded.In September 2022, the EU Parliament voted in favour of regulating the disputes funding market in member states, with the proposals including a 40% cap on the percentage of a court award or settlement that funders can claim (Law Gazette: 2022 EU gunning for litigation funders). While this may sound beneficial from the perspective of consumer protection, the reality of this may be that funders decline all but the largest of cases. Progressing moderate value cases (including those in the low millions) all the way to trial requires a significant litigation budget, and that’s without factoring in the possibility of appeal. In such scenarios, a cap of 40% may result in funders not managing to secure any invested capital back.With the risks aside, the boom in litigation funding over this past decade has demonstrated an ability to adapt and innovate on the part of litigation funders. With so much capital invested in the area, litigation funding isn’t just a growing legal sub-sector, but a permanent and evolving feature of the legal landscape.For expert advice across multiple legal landscapes, speak to an IDEX legal specialist here.Sources:Law Gazette: 2022 EU gunning for litigation fundersLitigation Funding: The UK and US rankings 2023Research Nester: Litigation funding statistics report 2023-2035RPC: Litigation funders backing class action law suits as they put £2.2bn war chests to work
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blogs 2024 Financial Services Mergers and Acquisition outlook
Over the past 12 months, due to economic instability, geopolitical tensions and rising inflation, some firms have been hesitant with expansion. But should they be? According to the latest EY CEO Outlook Pulse Survey, 98% of CEOs plan to pursue a strategic transaction in the next 12 months [compared to] last January, [where] the number was at 89% - with 58% of them looking to mergers and acquisitions (M&A) (EY: 2023 CEO Outlook Pulse survey). Alongside this, and promisingly, the UK and Ireland are expected to enjoy the highest growth in M&A activity this year according to a separate report by CMS (CMS: European 2024 M&A outlook). Research shows that 2024 will shift from a buyer’s market to a seller’s market – demand is high, supply is low. While high interest rates, inflation and rising cost of capital has affected appetite, it hasn’t changed the volume of deals; and with fewer publicised deals across the acquisition market it may seem as if the waters are stilling, but a lack of announcements doesn’t mean a lack of activity. So what will the driving factors of M&A within Financial Services be, and what can we expect to see in 2024? Embedded finance and diversificationHistorically, convergence has been a survival strategy in times of uncertainty. But as non-financial platforms and retailers adopt finance elements into their public offerings, cross-industry convergence is quickly becoming an evolution strategy for the specialism. Embedded finance has emerged as a transformative trend across the specialism, with mainstream attention skyrocketing in the last two years. It integrates traditional Financial Services into non-financial platforms, thereby completely redefining how consumers interact with payments, banking and insurance. Examples of this include AI powered payments network Klarna’s expansion into retail giants like ASOS and Pretty Little Thing, where customers are able to sign up to an interest free monthly payment plan.SS&C Intralinks describes this convergence as a “proven strategy that allows major players to maintain a diverse product line, keep pace with digital transformation and, in the current environment, meet the changing needs of a stressed banking system” (SS&C: How financial services M&A is responding to the 2023 bank shock). As a result, the relationship between fintechs, bigtechs and banking institutions has evolved from competitive to collaborative. 2024 promises convergence between agile consumer-facing fintechs and larger incumbents. Furthermore, PwC describe the asset and wealth management (AWM) sector as “solid, with potential profitability quite attractive [to prospective buyers]” (PwC: Next in asset and wealth management 2023). Professional services firms are increasingly diversifying their offering through the acquisition of AWM practices, and this is a trend expected to continue throughout 2024. Interest rates and confidence Interest rates have soared across the UK plateauing at 5.25% as of December 2023. Such high rates have undoubtedly made smaller-sized Independent Financial Advice (IFA) firms question their acquisition strategy, leaving the market wondering if all that remains in the current climate are consolidators and private equity-backed firms who can afford the cost of capital. Whilst 2024 is showing promising signs in the stabilising of interest rates, the overall cost of growing through acquisitions has absolutely increased. The specialism remains attractive thanks to the value financial planning firms offer. Broadening the service offering by selling to the clients of newly acquired businesses paired with a regular income significantly improves profitability and reduces investor risk. 2024 will be particularly exciting for small to medium (SME) IFA businesses. "We saw increased acquisition appetite amongst SME IFA practices last year, perhaps because of the stabilisation of interest rates and the impact this has had on the cost of capital. We expect this trend to continue through 2024, as SME practices are looking to capitalise on the opportunity available through retiring IFA's and the onboarding of spoke acquisitions to compliment and realise synergies within their existing operations” notes James Salmon, M&A Specialist, IDEX Consulting.Consumer Duty Implemented in July 2023, the new Consumer Duty regulatory framework demands that financial advisers prove their services provide fair value. While this may not necessarily cause huge changes in deal volumes, firms are doubtlessly going to be more scrupulous which could prolong the dealmaking process. Following exchange, the average process of embedding new regulation such as Consumer Duty takes around three years. Firms with poorly implemented Consumer Duty run the risk of failing integration, losing value and ultimately seeing deferred payments defaulting. This is why having a well-defined strategy and plan for effectively and reliably embedding Consumer Duty is going to be vital for firms looking to sell. AI and emerging technologies By now it’s evident that artificial intelligence has instigated a paradigm shift across industries, with the pace of generative AI adoption being faster than some startups. ChatGPT, for example, reached 100 million users in just six months (Guide to next: Publicis sapient 2024 outlook). This has inevitably bled into the M&A process, with nearly three quarters (71%) of CEOs surveyed using AI as part of the transaction strategy process, either significantly or through pilot programmes. Only a small group (5%) claim they have no plans to use AI (EY: 2024 CEO outlook pulse survey). Improving technology capabilities and innovation will be a huge driver of M&A in 2024, with 16% of businesses stating that this a primary investment goal(FutureCFO: M&A Trends: Business leaders expect rebound into 2024) and 40% of FS businesses reporting a marked improvement in customer satisfaction thanks to AI, according to the 2023 IDEX AI Report. Helping to mitigate a famously complex process, financial businesses looking for smooth M&A undertakings are increasingly leveraging the power of artificial intelligence to optimise the journey. However, there also comes increased risk with automated business/asset auditing. Deloitte warn: “the technological turbulence [of] generative AI, transition to the cloud, increased fraud and cyber risk, and blurring of industry lines, such as the embedded finance trend—will require financial services leaders to be much more agile than ever” (Deloitte: 2024 financial services industry outlooks). Businesses looking to sell need to use compliant tools to ensure a smooth transition, artificial intelligence will remain a powerful advantage but needs careful leveraging. Furthermore, genAI offers huge opportunities for financial institutions. The only limit of the technology is that it’s only as powerful as the data it has access to. Firms may want to partner with large technology companies to access this infrastructure and M&A will be a fantastic way to feed the machine – adding to and enhancing their existing data. Expect to see data-motivated acquisitions in 2024.Portfolio reviews Mirroring a trend in convergence, and a direct response to rising rates, tougher times call for portfolio reviews from firms as they look to execute a series of smaller transactions in 2024. These smaller deals, while modest in comparison to some of the huge undertakings in years past, offer real advantages in the current financial and regulatory environment. Law firm Foley & Lardner mention, “the prevailing high-interest-rate environment has sparked a distinct trend in M&A for 2024, and that is a heightened importance on smaller-scale deals. Acquirers are opting for more modest transactions, partly due to the interest rate situation. These smaller deals present reduced financial risk and are more in line with a cautious approach to risk management”(Foley: M&A trends to watch in 2024). Alongside being more achievable, a series of well planned, de-risked acquisitions are just as transformative as front page news deals, and are a trend we can expect to see throughout 2024. ESG as a dealbreaker Lastly, environmental, social and governance (ESG) considerations are no longer a pleasant afterthought in financial services M&A and will continue to be a central focus for businesses looking to expand. Sustainability is an essential consideration in a business’ offering. As a result, 2024 will see ESG integration take a pivotal role in successful M&A transactions. This is reflective of a growing demand from both investors and clients for companies that not only perform well financially, but demonstrate continuing commitment to sustainability and ethical practices. Larger financial institutions looking to sell need to be aware that potential buyers will be scrutinising their ESG targets and performance. These environmental and ethical factors will also be integrated into the due diligence process, making them vital to successful M&A deals and therefore non-negotiable for companies looking for M&A appeal. Foley & Lardner aptly mention “as long as ESG factors align with economic performance, expect the political backlash to remain just that” (Foley: M&A trends to watch in 2024). Although the vast majority of respondents (85%) expect M&A activity to come under more scrutiny relating to environmental, social & governance (ESG) regulations over the next three years, almost two-thirds (64%) also believe ESG regulation will ultimately provide a boost to dealmaking in Europe (CMS: Turning the corner? CMS European M&A outlook 2024).From industry convergence, an updated regulatory climate to the emergence of AI and other new technologies, the Financial Services specialism will see further transformation throughout 2024 – and with it comes exciting opportunities for acquisition and diversification. Looking for advice on the Financial Services M&A landscape or keen to explore a new opportunity? Contact our specialist consultant James Salmon today, on 07947748173 or email james.salmon@idexconsulting.com. Sources: CMS: European 2024 M&A outlook Deloitte: 2024 financial services industry outlooks EY: 2024 CEO outlook pulse survey Foley: M&A trends to watch in 2024 FutureCFO: M&A Trends: Business leaders expect rebound into 2024 Guide to next: Publicis sapient 2024 outlook PwC: Next in asset and wealth management 2023 SS&C: How financial services M&A is responding to the 2023 bank shock UK Adviser: Have interest rates impacted M&A deals in the advice market?
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generalinsurance Integrating cultures during an acquisition: expert insights
Integrating company cultures effectively is key to the success of any acquisition or merge. When two organisations come together there can be a range of cultural differences; namely working styles and processes, company values and relationship dynamics. Differences can create frictions, miscommunication and uncertainty for people. Subsequently impacting wellbeing, engagement, productivity and retention. Research by McKinsey & Company shows “companies that manage culture effectively in their integration planning are around 50% more likely to meet or exceed their synergy targets – across both cost and revenue synergies” (McKinsey & Company: the importance of cultural integration in M&A: the path to success).With M&A being one of the main catalysts for organisational growth, accounting for almost $8.3 trillion of capital deployment, and responsible for driving almost 75% of growth targets (McKinsey & Company: Will 2024 be the year for M&A?) – how can businesses ensure cultural dynamics are managed well and importantly not lose top talent during the process?We spoke to Victoria Gallimore, Group People and Culture Director at The Clear Group, on the strategy they employ to ensure a consistent culture. Having acquired over 50 businesses, and 15 of those businesses from July 2023 to June 2024, The Clear Group are well aware of the importance and challenges of any cultural integration. Victoria shares her insight on how The Clear Group have managed so many successful acquisitions, their sensitive yet effective approach to cultural integration and the essential strategies any people management team should employ. During a typical acquisition does The Clear Group change the organisational structure?At Clear, we’ve created a regional structure across the UK retail business, led through the appointment of Regional Managing Directors (RMDs). The overwhelming majority of our RMDs have joined us from the various business that we have acquired over the years, so are able to provide firsthand experience, a holistic viewpoint as well as being a fantastic intermediary between our newly acquired businesses and the existing group. We align acquisitions to this regional model, so RMDs can support business in the region, underpinned with support from the central support teams. It’s important that we minimise disruption for teams during any transaction; our goal is always to work with people collaboratively from day one. That way nothing comes as a surprise and people don’t experience a huge amount of change. How do you manage the onboarding of a business?From day one, we work with a business to understand what an effective integration looks like for them; ensuring all new businesses can meet their Regional Managing Director, our senior leadership team and the individuals that will support them during the transition phase. This takes many forms, such as invitations to relevant business events, access to the group wide intranet and charitable and wellbeing initiatives, along with participation in our training programmes. All acquisitions are also invited to complete our annual employment survey to ensure their voices are heard. Feedback has confirmed that these initiatives help people feel part of the wider Clear family from the outset. We also work closely with acquisitions to understand their systems, processes and approach – the ultimate goal is to ensure everyone is on the same broking platform (if relevant). Often this is a slow and considered integration, avoiding disruption as much as possible. Existing cultures are also hugely important – we look to buy successful businesses with a similar ethos to ourselves. This synergy reinforces our intention to always integrate - never ‘take-over’.What people challenges do you experience during the change process and how is this managed? Managing expectations can be challenging. Some people may want instant change such as a change to reporting structures/processes, others want as much information as possible in advance so they understand the future direction, others may want new career opportunities, and others are reluctant to change. Each acquisition is different, and we respect that. We understand that one size does not fit all. It’s important to evaluate and understand the people you’re partnering with and leverage the acquired leadership team to ensure people feel connected, engaged and informed. This minimises the risk of people creating their own understanding based on assumptions, rather than facts.What is the impact on the teams and their culture, and how do you manage this?We always focus on acquiring businesses that align with our culture and values. Our stringent due diligence process ensures that it’s the right match for all parties involved. All of this helps to manage expectations early on, ensuring everyone feels part of the journey. This helps people feel comforted that they know what is happening and what it means to them. Having the Regional Managing Director structure in place also ensures there is continuous support, and with a strong communication line to the central team, they are able to let us know what additional resources or tools they might need.Do you create specific people engagement strategies during a period of change and if so, what does it entail?Yes, as part of the wider change and engagement strategy there are a number of activities we put in place. A few examples are:A robust internal communications strategy – Our intranet gives people a central place to learn about the business and their colleagues, plus an active forum to ask questions / share ideas. It’s also a great source of news with daily alerts, preventing people from missing out on key updates. A people business partner structure – We have designated people and culture professionals aligned to each of the regions. Our people and culture team work closely with managers to support individual career trajectories to ensure people have the right tools to implement clear development plans, which is essential for retaining talent. Culture champions –An effective network of Clear Group Ambassadors who provide information and news about our offices, events and initiatives to ensure everyone feels connected as a community.Peer Group – Our Clear peer group introduces staff to relevant sector experts and peers within their business area, encouraging dialogue and cooperation. Onboarding programme – This introduces teams and leaders to the business and provides them with dedicated time to understand the business and helps build relationships. Do you experience increased attrition?No, not to a concerning amount. The most important thing is to ensure you maintain an open dialogue. It’s no surprise that during any type of change people want honesty and transparency. It helps to keep the local leadership team the same, as this consistency makes people feel connected through association. And of course, we consciously move the integration at a pace agreed by all concerned. By keeping change to a minimum and by creating a relaxed and friendly working environment we have found that many people, especially vendors, have in fact stayed with us for a longer time than they might have anticipated. Sometimes after a planned retirement date. What is your biggest learn?Our biggest learn is doing as much as possible to make sure people understand the journey they’re on; regular communication is key to this. Staying connected with people through things like focus groups really helps to integrate teams, manage confusion (if necessary) and provide clarity. I genuinely think throughout any change process you can’t ‘over communicate’. In terms of cultural alignment, what advice would you give to companies going through an acquisition?There are a few things that I’d say are ‘non-negotiables’. Set clear expectations from the get-go – This helps to ensure everyone is on the same page and there are no major surprises.Understand the culture of the business you’re acquiring – Make sure it aligns with yours, otherwise there will undoubtedly be friction. Do your due diligence, what are your partner company’s values? Are they reinforced through processes?Review people processes – Does your partner company conduct appraisals with their staff? Are there performance metrics in place? Be sure you know clearly how they manage people engagement and communication. Do they have high retention levels, what’s their people engagement score?Make sure there are several communication avenues – People need access to leadership teams, colleagues and external sources to feel connected and to avoid creating a false ‘truth’.Keep it simple, communicate regularly with everyone and treat people like adults.If you’re looking to grow your business or planning an exit strategy, our specialist M&A consultants can provide some intel on market conditions and advise on your strategy. Get in touch.
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blog Why partner with IDEX Legal for your talent needs
This year alone IDEX legal have supported over 65 professionals in securing new roles at top law firms across the UK and internationally, and with an ambitious growth plan and unique service model there’s no sign the team is slowing down.We chatted to Luqmaan Ayaz, Senior Legal Consultant on how the IDEX legal team support clients and professionals, current market conditions and the unique benefits people can expect partnering with IDEX.How does IDEX Consulting work with legal firms and in-house teams?Our team supports clients across the UK, Europe and internationally to find and hire top talent who add long-term value to any firm or business. Our strong relationships with leading law firms and in-house legal teams across a range of business areas, including; financial services, insurance, construction and property, means we have unparalleled access to a range of specialist talent in the market. Our recruitment consultants have extensive knowledge of the legal profession, which allows them to offer a tailored approach to suit the individual requirements of our clients and those looking for a new role. We cover positions from newly qualified Solicitors to senior Lawyers and Partners, as well as General Counsel.How do you help legal professionals secure their dream role?We have a skilled team of recruiters who have over 125 years of combined experience. Our consultants work closely with professionals on a confidential basis, to understand potential frustrations, long-term career goals and lifestyle needs. This might include things like; frustrations around progression, concerns about an employer’s culture, hybrid working challenges, feeling underpaid or perhaps an individual would just like some market intelligence or understand what their peers might be doing at other firms. Having understood aspirations, we will devise a plan of action, based on our detailed understanding of the market. We’ll then reach out to desirable employers who will be best placed to provide the right career opportunity and package. We have excellent relationships with Senior Partners, General Counsels, heads of various departments and recruitment advisors to ensure a candidate’s profile is seen by the right person. Once introduced, we will remain in constant communication with that professional throughout the interview process, providing crucial interview prep and acting as a sounding board to help them secure the perfect offer of employment.What’s the benefit of working with IDEX Consulting?We are in your corner! We are 100% dedicated to helping you achieve your goals. 97% of the people we’ve assisted in securing new roles are still in place after five years. We’ve seen and done it all, whether you are a newly qualified legal professional seeking your first role, an associate seeking to progress or a senior professional seeking to break through the partnership barrier, we can help you.What’s the current Legal market like?On the back of the record-breaking hiring boom in 2022 across the Midlands, it’s no secret that recruitment across almost all legal markets took a significant hit in 2023. With a number of firms having overindulged in 2022 on the recruitment front, utilisation rates began slipping in 2023 as financial markets struggled to recover as quickly as everyone expected. Historically, it’s always been the case that demand for lawyers has remained greater than the number of lawyers available in the market, but in the last year or so this has changed dramatically. We are now seeing an increase in the number of lawyers actively seeking new roles, only to find significant competition for opportunities. When looking back at the beginning of the year, in the first two weeks of January alone, IDEX were instructed on over 20 vacancies in Birmingham across a number of disciplines. The vast majority of these positions would suit individuals between 3-8PQE. On the more senior end, the appetite to recruit new Partners continues to remain high, particularly in sectors such as Employment law and Litigation. As we approach the summer months, the Senior Associate market has really started to pick up particularly for those practicing Corporate, Real Estate and Real Estate Litigation law. Any advice you’d give to a professional planning a career move?Given the nature of the work Lawyers undertake, you’d be surprised at the number of Lawyers who do not do their due diligence when working with a recruiter! It is imperative that you work with a professional and a dedicated expert who prides themselves on their consultative nature and has a track record of success in your market. Take the time to really quiz the individual you are entrusting to help you achieve your career goals – it’s not something you can afford to get wrong! I would fully expect my representative to be able to provide thorough insight on the firm and hiring Partner, team structure, chargeable hourly targets, salary banding, bonus structure, promotion triggers and culture and agile working policies, as a bare minimum. If the individual is unable to answer any of the following, I would think twice before consenting to their representation.How can a business or professional learn more or get in touch?Just drop me a line, on 07425 806 576 or email me at luqmaan.ayaz@idexconsulting and I’d be happy to have a confidential chat. We have access to the latest legal market insights and developments which we can discuss further.~~~~~~~~~~~~~~~~~~IDEX Legal are an award winning, innovative, independent recruitment and business growth consultancy for law firms and in-house legal teams. We work with talented individuals at the heart of the legal sector, helping them to realise their career ambitions and secure a role that is right for them.Our strong relationships with leading law firms and in-house legal teams across a range of business areas means we have unparalleled access to a range of specialist talent in the market. We cover positions from newly qualified Solicitors to senior Lawyers and Partners, as well as General Counsel. Our track record speaks for itself, 97% of IDEX placements are still in place after five years and we have a 100% success rate on retained projects.
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