This year, Vertafore 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.
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.
Perhaps unsurprisingly, many agencies are prioritizing communication with clients and carriers for success right now, even if some of that communication means tough conversations.
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.
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.
Agencies are looking for ways to become more efficient with streamlined workflows, simplified data exchange, and automate parts of the client experience.
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.
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.
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.
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.
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.
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.