A spokesperson for the Chartered Insurance Institute (CII) has claimed investing in staff during the downturn will help businesses improve.

Daniel Pedley, public affairs manager at the CII, said those that pump money into training will be “in a better position when the recovery comes”.

“If you invest now you are putting yourself in a much better position for later on down the track,” he added.

His comments come as a new report by the organisation found more than a quarter (26 per cent) of employees in the UK’s insurance and financial services are afraid of being made redundant, despite only two per cent of workers in the sector having lost their job.

It was also revealed two-thirds of respondents (66 per cent) believe it is important to carry on investing in staff training, while one in five employers plan to reduce their expenditure to cut costs.

Meanwhile, a recent survey by the Work Foundation found 40 per cent of employees think they have more skills than their current jobs require.