The state of independent agencies in 2024

Insurance professionals share their perspective on our industry.

New 2024 report: The insurance agency workforce: Talent, tech, and the hard market

How insurance professionals experience their work

This year, we heard from nearly 2,000 individuals working at independent agencies. This diverse pool of insurance professionals shared insights into their day-to-day experience working in the industry, the impacts of the unprecedented hard market, and how they leverage technology to serve their clients. 

In addition, they discussed how they’re hiring new colleagues, retaining current staff, attracting new workers to the industry, and planning for a wave of retirements. ​

The takeaways: Independent agency professionals are passionate about what they do and the clients they serve. They are also feeling the pressures of the current market while finding creative ways through. ​

 

The state of the independent insurance agency

The majority of insurance professionals who took our survey expressed strong job satisfaction, noting that they feeling more plugged in and fulfilled in their work. The hard market is affecting insurance professionals, but they're still highly committed to their work. ​In regions affected by natural disasters, the role of the insurance agent has never been more important.

Across agencies, the majority of employees say they plan on staying in insurance at least six years. And many workers have already had a long career in the industry. Just over half have been in the industry more than 20 years. 

How long insurance professionals plan to stay in the industry

How long insurance professionals plan to stay in the industry

 

Insurance professionals work to boost carrier partnerships and client engagement

Market conditions are taking a toll
on agency staff

Today’s hard market is making it more difficult to place risk, find coverage options, and ease clients’ frustrations. For agency staffers, those factors are taking a toll. More than half of agency workers said they are experiencing increased stress and a heavier workload. ​

How the hard market is impacting agency staff

How the hard market is impacting agency staff

Perhaps unsurprisingly, many agencies are prioritizing communication with clients and carriers for success right now, even if some of that communication means tough conversations.​

How agencies are responding to the hard market

How agencies are responding to the hard market graphic

 

More than half of survey takers said their agencies are trying to build connections with additional carriers and underwriters. More than 2 out of 5 are now spending more one-on-one time with clients. In addition, a notable segment of agencies is reinforcing their internal operations by hiring more employees or adding new technology solutions.

 

 Independent insurance agencies turn to tech efficiencies 

Powering up on technology
in the hard market

Many agencies are looking to make better use of their existing technology. Others are adding new tools to help their staff work smarter. Nearly one in three survey takers said their agency has added tech tools in response to the hard market.​

This tech is helping in the hard market

What technology insurance agencies are using in the hard market

Agencies are looking for ways to become more efficient with streamlined workflows, simplified data exchange, and automate parts of the client experience.

​One standout is the insurance knowledge database. ​When carriers are changing their appetites, industry knowledge databases give agencies access to up-to-date insurance information from carriers and top publications. ​

On our radar: Managing a hard market

6 ways to win with technology in the hard market

In “the hardest market cycle in a generation” independent agencies are navigating skyrocketing premiums, carrier, and antsy clients. The good news is that agencies can address these market forces—often with their existing tools and resources.​
 

Learn more

 

Finding candidates is getting harder

The hiring challenges agencies face​

Finding the right candidates continues to press on agencies of all sizes. Over half said they are having trouble finding qualified candidates to fill vacant roles, up from our 2022 results. 

Industry recruiting strategies are changing with the times

Personal referrals remain the most popular way agencies attract new talent. But employees are becoming more reluctant to recommend a career in insurance to a friend compared to past years’ results.

We've faced these hiring challenges

We've faced these hiring challenges graphic

 

Attracting Gen Z’s attention​

While Gen Z candidates may not immediately put insurance at the top of their list of dream industries, our survey shows the industry has much to offer this generation of workers. In addition to being client-focused—64% reported “helping clients protect what matters,” as the top reason they like working in insurance—they are also attracted to the industry’s stability and work-life balance.

What agency workers like most about working in insurance

What agency workers like most about working in insurance

On our radar: with Kristen NeaseSkills-based hiring in insurance

Our industry can attract experienced, talented workers looking for a change. The key lies in reimagining the hiring process to spot great candidates with valuable, transferable skills that transcend the experience section of the resume.

Find your next great hire

 

Retention strategies matter to agency workers​

Keeping insurance professionals engaged​

Agencies and their employees don’t always agree on how to best recruit and retain talent. ​

The top-ranking strategies for businesses on the employment side of the equation:​

  • Remote work options​
  • Flexible work schedules​
  • Professional development opportunities.​

Agency employees have different ideas. Over half named increased compensation as the most important factor in keeping them in their roles. ​
 

What agencies are doing to retain staff in 2024
Redefining efficiency in insurtech image of people working together

 

(Re)Defining efficiency in Insurtech

As insurance tools get more robust (and as users become savvier), forward-looking tech providers and agencies are realizing that efficiency results not just from features and functions but also how users experience their technology.

Read the article

Technology is essential to agency employee retention​

Satisfaction with technology is key for agency professionals. One-quarter of agencies see technology as important for employee satisfaction. Over half of our employee respondents said having technology that streamlines and automates their day-to-day work is critical for their satisfaction.

Happy insurance agent using technology to improve their work

Technology features that insurance professionals say are key to improving the employee experience

  • 55%

    Streamlined workflows

  • 52%

    Automating repetitive tasks and data entry

  • 38%

    Single universal login

  • 35%

    Automating client communications

  • 27%

    User experience and interface (UX/UI)

  • 26%

    Integrated solutions

     

Agencies need to plan now for talent gaps

Insurance professionals are working longer

For every industry, people are staying in their jobs longer. But that seems especially true in insurance. ​

In our survey, many employees aged 60+ many don't expect to retire soon. In fact, almost half of our over 60 respondents plan to stay put for 6 or more years. And even those who expect to retire say their plans are 3 to 5 years out.​
 

How long our survey takers 60+ plan to stay in insurance

How long people 60+ plan to stay in insurance

Succession planning is crucial 

For those retiring soon, only one in four said they were aware of a succession plan to fill their role. The biggest role impacted by eminent retirees: account managers. 

 

Breakdown by role of those who plan to retire in the next 5 years

Breakdown by role of those who plan to retire in the next 5 years graphic

Posted June 21, 2024 in Ebooks & Whitepapers

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