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Top 3 Reasons Why People Leave the Insurance Industry

Compensation, work-life balance and benefits are the most frequently cited reasons for leaving the insurance industry, according to a study by Vertafore.
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top 3 reasons why people leave the insurance industry

Of those who leave the insurance industry, the most commonly cited reasons are issues of work-life balance and compensation, according to a study from Vertafore that assessed the state of the independent insurance agency workforce over the last four years.

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. Issues related to benefits (33%) placed third while promotions and retirement were the other most frequently mentioned reasons.

The study identified work-life balance and family life, as well as mental stress, as the most recurring themes in reasons for leaving the insurance industry. More than half of respondents said they would leave the industry for a better work-life balance, 84% indicated that while they would recommend the industry, they find it to be particularly stressful.

However, according to the study, there may be an opportunity amidst the turbulence of the pandemic to alleviate the stress the workforce generally feels.

The last year has brought change to every aspect of life, especially work. As remote working became the new norm, the study asked respondents how they felt about working from home—yielding interesting results.

Out of all the respondents interviewed in the study, 67% said they would prefer a future with remote work as a permanent feature. Over half of the respondents said they favored a relatively even balance of in-person and remote work, and only 15% said they would prefer a full return to the office. In fact, some are even interested in continuing to work remotely on a full-time basis, with 18% saying they would prefer to remain working from home.

With the less-than-ideal retention numbers in the industry, the study suggests that many find the work-life balance more manageable from home.

The study also attempted to glean some answers to technology questions in the workplace and found that respondents felt strongly about having access to the necessary technological tools. Although the majority of respondents said they felt they had the “necessary tools" to do their job, 1 in 5 said they felt their lack of access to modern tools impacted their ability to be successful.

Jan Alex is an IA contributing reporter.

Thursday, July 20, 2023
Recruiting, Hiring & Training