As Salaries Skyrocketed, Satisfaction Improved in 2022
Insurance agency personnel on average made more money in 2022 and employees reported higher satisfaction with their compensation in 2022 than in 2021, a year when satisfaction fell, according to the latest Agency Salary Survey, published annually by Insurance Journal. You can download the full agency salary survey report here.
Changes in overall salary and total income skyrocketed in all categories in 2022. Producers/sales saw a large increase in total income change, while management and support staff both saw significant positive total income changes.
Satisfaction with compensation held steady for the most part. While the 2021 Agency Compensation Satisfaction Index reflected slight drops in overall scores, this year’s Agency Compensation Satisfaction Index showed overall increases in satisfaction levels.
Satisfaction with compensation rose to an average of 3.61 overall in 2022 up from 3.41 overall in 2021, based on a scale of 1-to-5 where “5” equals “most satisfied.” (See Agency Compensation Satisfaction Index chart.)
- Management/agency owners/agency principals reported a compensation satisfaction score of 3.85 in 2022, up slightly from 3.80 in 2021.
- Producers/sales reported satisfaction of 3.39 in 2022, up from 3.31 in 2021.
- Support staff/CSR/account executives reported a satisfaction score of just 3.11 in 2022, down from 3.13 in 2021.
The score for overall satisfaction was higher when agencies offered employee benefits, both hard benefits (such has group health, life/disability, dental, profit sharing, 401(k) plans, IRAs and flexible savings accounts) and soft benefits (such as childcare/day care, education reimbursement and paid family leave). (See Employee Benefit Satisfaction Index.)
Employee benefit satisfaction ranked highest when agencies offered added benefits such as profit sharing (3.85), stock options (3.89), Employee Stock Ownership Plans (4.00), and childcare/daycare (4.00).
The survey found that in all employee benefit categories queried, employees showed more satisfaction with overall compensation when those benefits were offered.
As noted, the survey revealed an upward trend in total compensation for all agency positions. Producers reported the highest increases in total compensation, according to this year’s survey, as well as last year’s survey.
The 2023 Agency Salary Survey, based on about 650 responses nationwide, showed total income changes, which includes salary plus additional compensation such as profit sharing, bonuses and other income, were:
- Agency owners, principals and management reported an increase in total income for 2022, which revealed an 8.0% increase in total income, compared to a 7.5% increase in total income for 2021.
- Producers/sales total income increased the most with a 13.6% increase for 2022, compared to a 17.9% increase in 2021.
- Agency support staff total income showed 5.0% increase for 2022, compared to a 3.9% increase for 2021.
Salaries only (excluding bonus and incentive income), rose again in 2022 and at a higher rate than the previous year, according to this year’s survey results:
- Salaries for agency owners, principals and management rose 5.3% in 2022 compared to 4.6% in 2021.
- Producers/sales reported average increases in salary of 9.3% in 2022 compared to 6.1% in 2021.
- Salaries for agency support staff rose 5.6% in 2022 compared to 4.4% in 2021.
Insurance Journal’s Agency Salary Survey collected nearly 650 responses from agency owners and employees nationwide via an online survey in January 2023. Demotech Inc., Insurance Journal’s official research partner, assisted with analysis of this year’s survey results. For more information, contact Andrea Wells at: awells@insurancejournal.com.