Vertafore Report Highlights Agency Recruitment, Hard Market Challenges

Independent insurance agencies are struggling to find qualified job candidates, and nearly a third of agents surveyed for a recent Vertafore report said they’re finding that “young people just aren’t that interested in insurance.”

Vertafore’s annual insurance workforce survey report also showed a drop in current insurance professionals who would recommend a career in the industry to a friend over the past four years (from 85% in 2021 to 65% this year), and it shared that 32% of employees involved in hiring said “culture fit” was a barrier.

That number was almost three times higher than what was reported in 2022.

Still, nearly three-quarters of all respondents said they plan to stay in the industry for six or more years, and Vertafore reported that, holistically, most of the survey-takers remain keen on the industry.

A total of 1,989 insurance professionals responded to Vertafore’s network of independent agencies participated in the survey. They represented agencies of all sizes and included account managers, servicers, operations professionals and administrative workers, Vertafore said.

Hard Market Highlights

Seven of 10 surveyed insurance professionals said it has become more difficult to place risk, and 62% of respondents said they are having more difficult conversations with clients. Fifty-five percent said they are also experiencing heavier workloads and increased stress.

In response to the hard market, 54% of agents said they are establishing relationships with additional carriers and underwriters, and 43% are increasing one-on-one time spent advising clients. Thirty percent said they are adding new technology to their agencies.

Insurance knowledge databases, workflow management tools and carrier data exchange portals were among the technology tools agents said were helping the most in the hard market.

“Some agencies that use a knowledge database report the time spent searching for policy info dropped to 10 to 15 minutes, down from 1 to 2 hours per search,” the report said. “Insurance knowledge databases can also get new producers up to speed more quickly, help agencies spot new carrier partners and new lines of business, and give agents the information to play a more consultant role with clients.”