Editor's comment: The quest for talent

Ongoing litigation with several firms over inter-company moves has been predicted to be the tip of the iceberg, with market commentators saying the quest for capital is now a quest for talent.

Consolidation of the insurance market – especially the broking sector – has meant that scale is now critical, making companies more vulnerable to employees moving. They, therefore, strongly believe they need to protect their revenues.

Movement of teams is nothing new for the industry and CEOs often go on the record saying they are looking to acquire talented teams, but today’s uber-competitive market means that where cases may have previously been negotiated out of court, that no longer seems to be an option.

Swift legal action requesting injunctions is now seen as essential in relation to team moves so damage to the business is mitigated. Otherwise, delays, consultations with legal teams and drawn out negotiations with former employees – who have access to confidential information – can cause irreparable damage to a firm, according to legal advisors.

In addition, pursuing proceedings of this nature can act as a deterrent to discourage further employees from leaving and stem the flow. However, several commentators believe there is also an element of machismo behind companies pursuing litigation after other financial sectors might have been seen doing this.

Insurance firms now believe they need to show they are not a soft touch and will also take action. Some even went as far as to suggest there might be pressure on employers to do this.

If this is the thin end of the wedge, insurers must be starting to get concerned that brokers are taking their eye off the day-to-day of providing great service for their customers. Litigation has its place but attracting and retaining talent that can deliver for customers, and the business, must still be the ultimate goal for the insurance sector.

Rather than strong-arming staff into remaining with a company with the threat of legal action hanging over them, surely making career progression clear, giving staff powers and trusting them to use them and creating a great place to work should be what firms should aspire to in order to ensure the longevity of their business.