{"id":362,"date":"2026-05-18T00:00:09","date_gmt":"2026-05-18T00:00:09","guid":{"rendered":"https:\/\/www.iablueprint.com\/blog\/?p=362"},"modified":"2026-05-14T14:52:48","modified_gmt":"2026-05-14T14:52:48","slug":"reducing-risk-of-turnover-in-your-insurance-agency","status":"publish","type":"post","link":"https:\/\/www.iablueprint.com\/blog\/reducing-risk-of-turnover-in-your-insurance-agency\/","title":{"rendered":"Reducing Risk of Turnover in Your Insurance Agency"},"content":{"rendered":"

No company wants to lose employees. But for a smaller agency, the costs of turnover can be especially high. When you lose a valued producer, account manager, or salesperson, it can have a major impact on your business.\u00a0<\/span><\/p>\n

In the insurance industry, companies typically have a 50\u201370% <\/span>employee retention rate.<\/span><\/a> Clearly, this is an issue that many agencies need to get a handle on. From recruitment to onboarding time, the costs associated with turnover can add up fast, as we\u2019ll explore more in a moment.<\/span><\/p>\n

But <\/span>smart recruitment strategies<\/span><\/a> will help you find people who want to keep growing with you. Read on as we discuss what drives high employee turnover in the insurance industry \u2014 and how to correct this problem.<\/span><\/p>\n

How Turnover Affects Companies<\/span><\/h2>\n

Replacing a staff member can <\/span>cost 50\u2013200%<\/span><\/a> of their annual salary \u2014 and when you lose a high-performing employee, it\u2019s hard to quantify the costs in terms of lost productivity and ability to scale. Good employees keep the whole team running smoothly and hold essential knowledge about the organization. They\u2019re not easily replaceable, as the Society for Human Resource Management says. And if you end up hiring the wrong person, costs can rise even more sharply.<\/span><\/p>\n

And then there\u2019s the lost productivity from losing an experienced team member, along with the potential effects on morale. As a smaller agency, you have just a few people who hold relationships with customers and understand your processes, making turnover especially risky.<\/span><\/p>\n

Projected growth in the insurance industry adds to the need to address this issue. For most insurance companies, staffing needs are expected to increase, writes Allen Laman in <\/span>Insurance Journal<\/span><\/i>. A recent survey found that <\/span>72% of agencies<\/span><\/a> forecast revenue growth, with 90% of personal lines P\/C firms and 68% of commercial lines firms foreseeing increased revenue, he notes. In particular, companies will need more experienced staff to handle technology, underwriting, and compliance roles, in addition to more entry-level staff in operations and claims roles. However, actual head counts aren\u2019t growing as quickly as expected, Laman emphasizes. (From 2025, they rose by 0.81% instead of the projected rate of 1.42%.) Reducing turnover in the insurance industry will be a key part of this growth strategy.<\/span><\/p>\n

Drivers of High Turnover in the Insurance Industry<\/span><\/h2>\n

When agencies suffer from these problems, they\u2019re likely to see employees departing in higher numbers.\u00a0<\/span><\/p>\n

Task Overwhelm<\/span><\/h3>\n

In the typical agency, producers are overwhelmed. Sales staff are maxed out. A survey by Axis Capital reports that 9 of 10 insurance professionals experience <\/span>high stress and anxiety<\/span><\/a>, due to growing workloads. Stress can also create interpersonal challenges that never needed to exist.<\/span><\/p>\n

A Vicious Cycle of Stress<\/span><\/h3>\n

The problem of high taskloads compounds when people leave. If you have a team of four people and you lose one, you just lost 25% of your staff. If you\u2019re split between commercial and personal lines, you may have lost half of your staff in either area. Agencies suffer when this happens. It doesn\u2019t have to be devastating in the long-run, but your growth is going to stop until you fix the problem. And employees who stay on the team carry a lot of anxiety, trying to handle their departed coworker\u2019s taskload along with their own. Ultimately, this may drive more of them to quit.<\/span><\/p>\n

Poor Division of Work<\/span><\/h3>\n

Poorly organized roles lead to inefficiencies and overloaded schedules. Instead of doing complementary work, employees might be handling the same tasks. A more thoughtful division of labor will create much-needed balance.<\/span><\/p>\n

Ineffective Management Style<\/span><\/h3>\n

We\u2019ve all heard the saying, \u201cEmployees don\u2019t leave companies. They leave managers.\u201d It\u2019s not necessarily because the manager is unpleasant to be around. Plenty of nice people are bad managers. It could also be that the manager doesn\u2019t share guidance or never gives them stretch assignments. Or, maybe the manager only gives constructive criticism after they\u2019ve completed a project\u2014or tends to micromanage. Both absentee managers and helicopter managers create an unsupportive work environment.\u00a0<\/span><\/p>\n

One recent study found that for <\/span>92% of U.S. employees<\/span><\/a>, supportive management is almost as important as pay \u2014 and 89% of knowledge workers report experiencing increased anxiety at work. Their stress may often stem from management\u2019s hyperfocus on tracking how they\u2019re using every moment of their time, which undermines trust, the study suggests.<\/span><\/p>\n

Lack of Growth Opportunities<\/span><\/h3>\n

People also leave companies when they don\u2019t see a future for themselves there. If they can\u2019t visualize a path for advancement, they might assume that if they stay, they\u2019ll stagnate. In a small agency, there may be limited opportunities for promotion.<\/span><\/p>\n

Now, let\u2019s look at some tried-and-true strategies for boosting retention in insurance firms.<\/span><\/p>\n

Best Practices for Reducing Turnover in Insurance Agencies<\/span><\/h2>\n

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\u00a0<\/span>Image source<\/span><\/i><\/p>\n

<\/span><\/i><\/a><\/p>\n

Reducing employee turnover in the insurance industry centers on lowering stress and supporting growth. By taking these steps, you\u2019ll create a positive atmosphere where people want to work.<\/span><\/p>\n

Focus on Strengths<\/span><\/h3>\n

People get burnt out from doing things they aren\u2019t good at. If you have a good salesperson, you want them selling. You don\u2019t want them leaving you for another agency where all they have to do is sell.\u00a0<\/span><\/p>\n

So, divide up the work in smart ways, based on each person\u2019s strengths. <\/span>Creating siloed departments<\/span><\/a> focused on specific functions will let your team work more efficiently. People will then feel less overwhelmed and get to focus on what they actually like doing.<\/span><\/p>\n

Hire the Right Support<\/span><\/h3>\n

Bringing on a virtual assistant in a supporting role will let your staff focus on their main area of skill, like sales or marketing. Hire a VA with the personality traits and expertise to do work that complements what existing staff are doing. Then, assign them tasks that don\u2019t need to be done by a producer or senior staff.<\/span><\/p>\n

A good insurance VA is already experienced in the industry and understands the processes. Plus, they\u2019ll be doing the kind of work they love. They have a keen eye for detail and organization, whereas for your sales staff, those things probably don\u2019t come naturally. So, it\u2019s easy for a VA to dive in and start adding tremendous value early on.\u00a0<\/span><\/p>\n

Sometimes staff have trouble conceptualizing just how supportive a good VA will be. When we hired a VA named Charles to support a salesperson at my insurance firm, the agent thought, <\/span>What am I going to do if he starts handling all of these daily tasks? <\/span><\/i>But within a week, the agent changed his tune. <\/span>This is great<\/span><\/i>, he realized. <\/span>I can make the sale and then hand over the follow-up to someone else.<\/span><\/i> Basically, the VA started acting as his executive assistant, which ramped up his capacity to make sales.<\/span><\/p>\n

Fine-Tune Your Leadership Approach<\/span><\/h3>\n

Ask employees for feedback on where you need to grow. Then, take steps to become a better leader. Define your leadership style, then take a course or read a book about it. Taking a <\/span>servant leadership<\/span><\/a> or transformational leadership approach will help you lead through intrinsic motivation.<\/span><\/p>\n

Also ask yourself, \u201cAm I providing the right level of daily and weekly support?\u201d Share feedback at least a couple of times a week. Check in about how work is going regularly. But don\u2019t overwhelm your staff with check-ins, or they\u2019ll think you don\u2019t trust them.<\/span><\/p>\n

Provide Career Development<\/span><\/h3>\n

Incentives like promotions and merit increases (in the 3.3\u20134% range), along with enhanced benefits, have helped decrease turnover in the insurance industry, says Laman. But even more importantly, employees want opportunities for growth. So, show them how they can scale with your company. Talk about future roles they can aspire toward and how to prepare.<\/span><\/p>\n

Prioritize Fairness<\/span><\/h3>\n

Strive to follow fair practices, giving everyone equal opportunities for advancement, stretch assignments, and incentives.<\/span><\/p>\n

If, for example, you have two sales team members, give them the same support and opportunities for growth. Even if you think one might make a better leader, don\u2019t make assumptions. You don\u2019t want to create a self-fulfilling prophecy that leads to hurt feelings or resignations. Moreover, with the right support, people could surprise you. Someone who doesn\u2019t see herself as a leader could learn to flourish in the role because of her emotional intelligence. Meanwhile, a more confident and extroverted employee might not actually be good at nurturing people\u2019s growth.<\/span><\/p>\n

By prioritizing fairness, you\u2019ll keep morale high and foster a strong sense of trust.<\/span><\/p>\n

Strengthen Work-Life Balance<\/span><\/h3>\n

Prioritize overall wellness, not just productivity. Taming workloads for overwhelmed employees will help with this. Encourage people to leave work at the end of the workday, too. If they\u2019re still working long hours, talk with them about how to reprioritize.\u00a0<\/span><\/p>\n

As you focus on these areas, you\u2019ll create a positive culture where people feel comfortable reaching out for support. Employees will feel valued and quality of work will grow stronger as they leverage their strengths in their daily work. That means when clients partner with us to hire virtual assistants, they don\u2019t just see high retention of the VAs themselves. Instead, the whole team becomes more likely to stay with the company over the long term. They feel less overworked, more able to leverage their strengths, and more satisfied in their role.<\/span><\/p>\n

Ready to talk about how a skilled VA could enhance your team\u2019s efforts? <\/span>Book a discovery call<\/span><\/a> to start the conversation. I\u2019ll be glad to talk more about strategies for taming employee turnover in the insurance industry by making smart staffing choices.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Learn how providing the right support will help you retain your valued employees. By taming overload and helping people leverage their strengths, you\u2019ll lower stress and boost job satisfaction.<\/p>\n","protected":false},"author":3,"featured_media":350,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","entry"],"_links":{"self":[{"href":"https:\/\/www.iablueprint.com\/blog\/wp-json\/wp\/v2\/posts\/362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.iablueprint.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.iablueprint.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.iablueprint.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iablueprint.com\/blog\/wp-json\/wp\/v2\/comments?post=362"}],"version-history":[{"count":1,"href":"https:\/\/www.iablueprint.com\/blog\/wp-json\/wp\/v2\/posts\/362\/revisions"}],"predecessor-version":[{"id":364,"href":"https:\/\/www.iablueprint.com\/blog\/wp-json\/wp\/v2\/posts\/362\/revisions\/364"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.iablueprint.com\/blog\/wp-json\/wp\/v2\/media\/350"}],"wp:attachment":[{"href":"https:\/\/www.iablueprint.com\/blog\/wp-json\/wp\/v2\/media?parent=362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.iablueprint.com\/blog\/wp-json\/wp\/v2\/categories?post=362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.iablueprint.com\/blog\/wp-json\/wp\/v2\/tags?post=362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}