The data contracting landscape is evolving rapidly, and as we approach the final month of Q1 2025, the industry is facing a fundamental shift in priorities.
With specialty insurers ramping up digital transformation efforts, the demand for specialist contractors in data analytics, engineering, AI, and governance has never been higher. But which skills will command the highest demand and rates over the next 12-months?
Sarah Hanna, our go-to data recruitment and talent expert within the London Markets scene at Pioneer Search has seen first-hand how businesses are reshaping their data strategies, and recent insights from Contractor UK confirm this shift. Whether it’s Power BI specialists enhancing reporting capabilities, Azure data engineers building resilient infrastructures, or AI experts revolutionising decision-making, contractors with cutting-edge expertise will be at the forefront of this transformation.
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Data Analysis & Reporting
Data Analyst and BI developer contracts are increasingly essential in the insurance industry due to ongoing data transformation efforts. As businesses shift from traditional reporting tools like SSRS and Excel, they are enhancing their reporting strategies to leverage more advanced solutions.
While there are many reporting tools to choose from, Power BI is the most widely used tool and therefore the most sought-after skillset for reporting. Power BI not only fills data gaps within organisations but also supports business-focused teams with its robust analytics capabilities.
Current Rate: £550 - £650 Inside IR35 or £500 - £600 Outside IR35
*will foresee rate increase with NI contribution regulation changes in April
Outlook for this year: We’ll also see the rise of AI-powered reporting tools, such as Microsoft Fabric further drive the demand for Power BI specialists, enabling insurers to gain deeper insights and make more informed decisions
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Data Engineers
With the advent of Data Warehouse & Data Lake builds, the data engineer is paramount for successful implementation. With Azure as the primary cloud choice in the industry, a data engineer with strong Azure tools continues to be in high demand. It is also a contract heavy market, with a talent shortage of Perm Azure Data Engineers as the skillset was previously outsourced to offshored consultancies.
Current Rate: £600 - £700 Inside IR35 or £550 - £650 Outside IR35
*will foresee rate increase with NI contribution regulation changes in April
Outlook for this year: While Azure remains the preferred cloud provider, there is a notable increase in the adoption of GCP and AWS, as both providers are making significant investments in the Insurtech market. Although the demand for these skills is not yet widespread, I predict that the need for expertise in these platforms will grow as competitor cloud providers continue to expand their presence in the industry.
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Artificial Intelligence and Machine Learning
Machine Learning (ML) and Artificial Intelligence (AI) are the buzzwords on everyone's lips, and it's no surprise that these technologies continue to revolutionise industries, including insurance. With data platforms already established, businesses are now looking to implement AI services, with Azure being the preferred choice. Traditionally, data scientists have been permanent employees, often holding PhDs in STEM fields. However, as ML becomes more widespread, the profession has become more accessible. Banks have led the way in AI implementation, predominantly using contractors, which has expanded the market significantly.
Current Rate: £750 - £850 Inside IR35 or £650 - £750 Outside IR35
*will foresee rate increase with NI contribution regulation changes in April
Outlook for this year: This is a market to watch closely. As insurers refine their AI strategies, I anticipate a growing demand for ML/AI Engineers, as well as Data Engineers with experience in ML/AI services.
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Data Governance
Unlike AI and ML, data governance can often be overlooked. However, for truly data-driven businesses, it's clear that effective AI capabilities rely on robust data governance and quality frameworks. Data governance is essential in the insurance industry to ensure the accuracy, integrity, and security of the vast amounts of data insurers handle daily. Without these frameworks in place, the potential of AI cannot be fully realised. We’re also seeing an increase in Data Governance/Management tool implementations such as Collibra or Ataccama.
Current Rate: (Head of Data Gov/Data Governance Lead) £900 - £1000 Inside or £800 - £900 Outside IR35
*will foresee rate increase with NI contribution regulation changes in April
Outlook for this year: I foresee a growing market for Data Governance contractors, who could play a crucial "firefighter" role. Businesses that have moved too quickly without establishing proper data governance will urgently seek specialists to address data issues and set up frameworks from scratch. This demand will be driven by the need to ensure data accuracy, integrity, and security in an increasingly data-driven industry.
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As organisations race to stay ahead, skilled professionals who can navigate these changes will be in prime position to secure lucrative contracts. The time to upskill and align with emerging industry trends is now.
If you're a data professional looking for your next interim assignment or a hiring manager seeking top-tier interim data talent, get in touch with Sarah today.
Feel free to drop her a message to share your thoughts or explore how these trends might shape your organisation’s data and AI strategy in 2025.
📞 0203 828 6959
📧 sarah@pioneer-search.com
