Compensation Trends Reshaping Client Service Salaries Within Insurance Agencies

After numerous requests for insurance industry compensation information, our team at Capstone started to track and analyze compensation data derived from our recruiting activities. Our most recent report came out in February 2024 with a seven-year look back on compensation trends (2017-2023). Our goal is to illuminate trends and provide clarity for insurance agencies as they evaluate compensation structures, gauge employee engagement, and address the pivotal question of competitiveness.

While our data analysis spans all agency disciplines – sales, service, and leadership – this article zeroes in on our findings for client service compensation. With roles such as CSR, account manager, and account executive constituting over 60% of agency hires, it’s imperative that customer service salaries are the centerpiece of compensation review. Following are key insights and surprising findings from Capstone Search Group’s 2024 Insurance Agency Compensation Report.

Specialization impacts property/casualty service salaries. Below are the 2023 salary ranges by level of service. Agencies consistently paid at the top end of the spectrum to commercial lines account managers with vertical specialization and large account, risk management experience as well as personal lines account managers who are skilled client engagement leaders with high net worth/private clientele.

• CSR: $48,000-$71,000
• Account Manager: $65,200-$100,000
• Account Executive: $105,000-$300,000

P/C account managers’ salaries continue to rise. The average account manager salary surpassed $80,000 in 2023. Two major factors contributed to this increase. First, agencies used generous compensation packages to attract new hires. Second, agencies revised their internal salary brackets to retain experienced staff.

• 7-Year Change (2017-2023): +19.05%
• 5-Year Salary High (2019-2023): $100,000
• 5-Year Salary Low (2019-2023): $57,000

$71,000 is the new top-end P/C CSR salary. In 2023, insurance agencies faced significant challenges hiring semi-entry-level roles like commercial lines CSRs, which led to considerable salary hikes.

• Between 2017-2021, the average CSR salary was just under $50,000.
• In 2022, the average increased to $55,384.
• In 2023, the highest CSR salary reached $71,000.

If $70,000-plus salaries become the norm, then agencies need to rethink CSR compensation bandwidths to be competitive.

A sizable disparity between benefits and P/C service compensation remains. A seven-year lookback on our compensation data offers no indication that the gap between property/casualty and benefits compensation will narrow. Insurance agencies consistently pay higher average salaries across all benefits service levels, showcasing the most significant contrast in entry-level analyst and top-level account executive roles. Case in point:

• Employee benefits account manager compensation skyrockets. The average employee benefits account manager salary was $90,625, a 22% increase compared to the average salary just two years prior.
• Entry-level benefits analysts are well compensated. In 2023, the average employee benefits analyst salary rose to $63,000, a 5.8% increase from 2022. They also earned considerably more (13.75%) than their P/C CSR counterparts whose average salary in 2023 was only $55,384.
• Benefits account executives continue to command higher salaries. In 2023, the average employee benefits account executive salary was $139,640, 16% higher compared to the average P/C account executive salary of $120,226. Another notable trend is the rise in salary ranges. Between 2022 and 2023, the low employee benefits account executive salary increased from $108,000 to $111,000, and the high went from $170,000 to $205,000.

To ensure hiring success in 2024, it’s imperative that your insurance agency establish a robust talent acquisition strategy centered around competitive compensation. By doing this, you can concentrate on recruiting new talent, refining your onboarding procedures, and securing the loyalty of your current employees.

Are you interested in the full report? Email Mary at asktherecruiter@csgrecruiting.com to request your free copy.