Risk engineering
The True Cost of Training Risk Engineers
Peter Eymael
Apr 23, 2025
The True Cost of Training Risk Engineers: A Data-Driven Perspective
As outlined in Felix Hauri’s article, The Great Insurance Knowledge Transfer, the insurance industry is on the brink of a major shift. With a significant portion of experienced risk engineers approaching retirement, decades of institutional knowledge risk being lost. This raises an urgent question: who will step in to take their place - and where will they come from?
Traditionally, insurers have sourced risk engineers from engineering teams in highly specialised sectors such as oil & gas or manufacturing. These individuals then undergo extensive training and mentorship to adapt to their new role. But how often do we pause to consider the true financial investment required to develop a fully capable risk engineer?
Drawing from industry expertise and financial analysis, this article explores the real cost and ROI timeline of bringing a new hire up to full productivity - and what that means for the future of the profession.
The Progressive Development Path
Training a risk engineer is not merely about building technical knowledge - it's about developing a professional who can effectively communicate with senior clients while making nuanced risk assessments. A properly structured training program follows this general timeline:
Months 0-6: Initial training in organisational measures, human elements, construction basics, and natural hazard exposures
Months 6-9: Independent handling of "soft occupancies" (offices, hotels, hospitals, shopping centres)
Months 9-12: Capability to evaluate warehouses and distribution centres with proper sprinkler and water supply training
Months 12-18: Gradual introduction to specialised industries (metal workers, plastic workers) and their unique hazards
After 18 months: Engineer becomes largely self-sufficient, capable of applying sound judgment and knowing when to seek additional support
Breaking Down the Investment
The total additional cost to fully train a risk engineer over two years comes to approximately $214,000 - beyond their base salary. This breaks down into three key components:
Cost component | Year 1 | Year 2 | Total |
|---|---|---|---|
Inefficiency Cost - due to slower work, simpler assignments, and dedicated learning time | $89,000 (66% of annual salary) | $44,000 (33% of annual salary - as productivity increases but remains below experienced levels) | $133,000 |
Peer Engineer Support - for reviews, feedback, and joint client visits | $36,000 (20% of senior engineer's time) | $18,000 (10% of senior engineer's time - for continued mentorship at reduced intensity) | $54,000 |
External Training - specialised courses and certifications | $20,000 (15% of salary) | $7,000 (5% of salary) | $27,000 |
Total | $145,000 | $69,000 | $214,000 |
Accelerating the Path to Proficiency with AI-Powered Guidance
Given the complexity of the training journey, insurers need smarter ways to support new risk engineers without overburdening senior staff or compromising quality. This is where nettle makes a difference. By surfacing targeted insights from decades of survey reports, industry standards, and internal documentation, nettle delivers the right context at the right moment - whether it’s a past inspection of a similar facility or a specific guideline for evaluating a unique hazard.
This just-in-time knowledge helps new engineers build confidence, make better decisions faster, and reduce their reliance on constant supervision. The result? A faster path to proficiency - and a stronger, more resilient risk engineering team ready for the future.
About the author
With 30+ years of experience at industry leaders like FM Global, Swiss Re, and BHSI, Peter Eymael has helped insurers and clients navigate the complexities of risk like few others in the field.
Peter's deep knowledge of risk assessment and mitigation is invaluable as nettle seeks to build the next generation of AI-powered tools for insurers.
