Britain’s insurers are facing a recruitment crisis as companies struggle to attract top talent and fail to do enough to develop existing staff, the chief executive of Lloyd’s of London told an industry forum yesterday.

Richard Ward told the Insurance Institute of London forum: "We are currently facing a severe skills shortage that has the potential to undermine our recent reform efforts. Our progress can only be maintained if we recruit world class talent."

Ward said that nearly 90% of graduates said they would not consider a role in insurance and 75% of recruiters in the industry said they struggle to attract top talent.

He added: "Up until a year ago over 70% of industry practitioners did not give information to careers staff, 80% did not give university campus presentations and only a quarter of managing agents had graduate programmes.

"Compare that to the investment banking sector which spends just under £4,000 on each recruit, whilst insurance companies spend just £714."