In the five years leading up to 2002 there were many significant changes in the insurance industry in Australia that brought about a range of training needs. These training needs arose from matters as diverse as mergers, increased competition, corporate failures, and legislative changes. This study includes findings from a survey of the insurance industry in Australia in the period 2000-2002 as a means of exploring the importance of the environment (marketplace) in predicting aspects of training needs. The findings demonstrate that an environmental analysis approach to training needs analysis can predict the type of training that organisations will subsequently need to provide, and thus has the potential to produce a more accurate assessment of training needs in the future. It also has the potential to contribute to the economic success of businesses operating in the financial services industry.