Rates for non-execs soar in re/insurers; female NEDs earn more

It can be a lucrative gig if you can get it—non-executive directors (NED) in re/insurers now earn on average almost £100,000 a year or £3,000 per contracted day last year, an increase of 70% in the past four years, according to new research. What is more, female NEDs can demand a premium.

The increase in NED earnings in the sector can partly be explained by 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, according to research by executive search firm Damhurst.

But it also suggests a hunt for more diversity on boards has driven the rise, with evidence of more female directors and those from outside the industry. 25% of the respondents were female, which reasonably reflects the average insurance board composition. These were paid on average 9% more than their male counterparts.

Damhurst’s latest NED Remuneration Report, covering 2022, was last completed in 2018. Damhurst gathered data via an anonymous online survey of relevant insurance market non executives.

On average, it indicated that 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. Since the 2018 Damhurst report the average remuneration in the insurance sector for NEDs has increased by 70%.

However, the Damhurst survey reports that NEDs estimate they still devote on average seven more than their contracted days to their individual boards.

The Damhurst 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.

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. Beyond this, regularly mentioned themes included: ESG, regulatory demands and inflation.

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.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.