How many insurance professionals are retiring? (2024)

How many insurance professionals are retiring?

The Impact of the Aging Insurance Workforce

Are people leaving the insurance industry?

People are leaving the insurance industry

The insurance industry will lose half its workforce between now and 2036 as almost 400,000 employees retire.

Is there a shortage of insurance agents?

Altogether, it seems likely that today's insurance talent shortage isn't going away any time soon. If anything, carriers may be feeling increased pressure from reduced staffing in the coming years, in a few critical ways.

What is the turnover rate for the insurance industry?

In the past 10 years, most insurance companies operated with roughly an 8-9% staff turnover rate, whereas now, it's more typical for companies to operate in the 12-15% range, with voluntary turnover spiking at more significant levels.

Is the insurance industry a stable career?

The insurance industry is known for providing job stability due to its steady demand for professionals skilled in assessing and managing risk.

Why are people leaving the insurance industry?

The primary reason is compensation—nearly 60% of those leaving the industry stated their pay was the primary reason for leaving. Work-life balance followed close behind, factoring into over 50% of responses.

What is the insurance industry outlook for 2024?

In emerging markets revenue growth is expected to reach 5.1% on average in 2024 and 2025. This revenue growth may soften the impact of the ongoing profitability and liquidity challenges the segment faces. Claims volumes and costs across lines of business remain elevated in most major markets.

Why is the insurance industry struggling?

The property insurance sector is under heavy pressure from poor financial performance due to unexpectedly high inflation, a shift of exposures to higher-risk areas, and rising reinsurance costs.

Why do so many insurance agents fail?

Insurance agents succeed when they prioritize their customers' needs over their own profits. The most commonly cited reason insurance agents fail is that they fail to listen to their customers and take the time to find the best product to suit their needs.

What is the average age in the insurance industry?

Retiring Insurance Workforce and the Young Professionals

The average age of an agent or a broker, according to industry statistics, is pushing 60, and a white paper published by McKinsey puts the median age of insurance agents at 59 years old.

Which industry has the highest turnover rate?

What is the failure rate of insurance agents?

Sadly, the insurance industry seems to be starving for new talent. Young people, relatively speaking, aren't flocking to become insurance agents. For those that do take on the challenge, around 90% or so (depending on which report you read) fail. “Fail” is a harsh word…

What company has the highest employee turnover rate?

A new Payscale report published on Thursday ranked Massachusetts Mutual Life Insurance Company as having the highest turnover rate out of all of the Fortune 500 companies. Average employee tenure was a little over nine months.

What kind of insurance agent gets paid the most?

While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.

Why do insurance agents earn so much?

One of the primary reasons insurance agents can accumulate wealth is their commission-based income structure. Unlike salaried employees, agents earn a percentage of the premiums they sell to clients. As they build a client base and generate more sales, their income potential increases.

Is insurance career recession proof?

Clearly, the world couldn't continue to function in a normal way without insurance protecting individuals and businesses from risk and financial loss. So, in this way, insurance can be considered a “recession-proof” industry.

What is the biggest threat to the insurance industry?

Will insurance companies go out of business?

Home insurance companies can go out of business because they were purchased by another insurer, went insolvent, or declared bankruptcy. If your home insurance company can't afford to pay out claims after going out of business, it typically purchases reinsurance or stop-loss insurance to cover the cost.

What insurance companies are laying off employees?

According to S&P Global, Liberty Mutual laid off around 1,200 employees, while USAA had cut 300 employees from its workforce. Other notable layoffs in the industry included those announced by personal lines insurtech Hippo and specialty MGA Hagerty.

What is the future of the insurance industry?

Specifically, leaders are looking to spark growth and transform operations for a more digital and customer-centric future. The path forward will be defined largely by corporate purpose, with products designed to boost consumers' financial well-being and protect against future shocks (including another pandemic).

Is insurance a good career for the future?

According to the U.S. Bureau of Labor Statistics , the job outlook for insurance sales agents is positive, with an estimated growth rate of 5% by 2030. This number amounts to 27,500 new jobs, marking a higher growth estimate than average for all occupations.

Is Progressive insurance growing?

Our net written premium surpassed $50 billion in 2022, growing 10% year over year.

What are the three biggest issues facing the insurance industry?

Is insurance industry in trouble?

Insurance is the reason something bad happening to you, like losing your home in a wildfire, doesn't guarantee a slide into poverty. But the industry is in serious trouble. Climate disasters around the state, especially worsening wildfires, threaten the current business model and millions of middle-class Californians.

Are insurance companies doing well?

After suffering some of the worst years in their history, insurers say they now see a path to profitability for home and auto policies. Big rate increases are driving up revenue, while the inflationary pressures that pushed up repair and replacement costs appear to be easing.