Jeffrey Wade
The insurance industry has a high turnover rate, with contact centres having some of the highest turnover rates in the country, ranging between 30-45%. In the past 10 years, most insurance companies operated with roughly an 8-9% staff turnover rate, whereas now, it’s more typical for companies to operate in the 12-15% range, with voluntary turnover spiking at more significant levels. This is due to rising CSR burnout and quit rates.
| Characteristics | Values |
|---|---|
| Turnover rate for life insurance agents | 85% |
| Turnover rate for insurance companies in the past 10 years | 8-9% |
| Turnover rate for insurance companies now | 12-15% |
| Turnover rate for contact centres | 30-45% |
What You'll Learn
The turnover rate for insurance agents is 85%
There are several reasons why the turnover rate for insurance agents is so high. Firstly, there is a financial incentive for recruiters to put new agents in the office. Recruiters know that just about anyone who knows at least one hundred people can sell $10,000-$15,000 of annual premium in their first three months, and they can project to make $4,000-$6,000 per every agent hired.
Secondly, the insurance industry continues to suffer from rising CSR burnout and quit rates. Contact centres have some of the highest turnover rates in the country, ranging between 30-45%. It can cost six to nine months of an agent's salary to recruit, onboard, and train them, and it can take up to six months for a CSR to provide optimal customer service. This means that high turnover rates can be very costly for businesses.
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The turnover rate for CSR agents is 45%
In general, the insurance industry has a high turnover rate, with some sources citing a rate of 8-15% in recent years. This is due in part to the financial incentive for recruiters to put new agents in the office. Recruiters know that just about anyone can sell $10,000-$15,000 of annual premium in their first three months, and they can expect to make $4,000-$6,000 per agent hired.
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The turnover rate for contact centres is 30-45%
The turnover rate for contact centres in the insurance industry is 30-45%, more than double the average for all other occupations. This is due to rising CSR burnout and quit rates.
The turnover rate for the insurance industry as a whole is 12-15%, with voluntary turnover spiking at more significant levels. This is a notable increase from the previous decade, where most insurance companies operated with a staff turnover rate of 8-9%.
The high turnover rate in the insurance industry is attributed to several factors. One factor is the financial incentive for recruiters to put new agents in the office, resulting in an 85% turnover rate. Additionally, the cost of replacing CSRs can be significant, with the process of recruiting, onboarding, and training new agents taking up to six months and costing six to nine months of an agent's salary.
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The turnover rate for property and casualty insurance is 77%
The high turnover rate among life insurance professionals specifically can be attributed to the financial incentive for recruiters to put new agents in the office. Recruiters know that just about anyone who knows at least one hundred people can sell $10,000-$15,000 of annual premium in their first three months, and they can project to make $4,000-$6,000 per every agent hired. This results in an 85% turnover rate in insurance.
To minimise the impact of churn and turnover, insurers are beginning to transform the experience of their CSRs and call centre agents by creating cultures marked by innovation, collaboration, and smart technology adoption.
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The turnover rate for life and health insurance is 22%
The high turnover rate in the insurance industry has been attributed to several factors. One reason is the financial incentive for recruiters to put new agents in the office. Recruiters know that just about anyone can sell $10,000-$15,000 of annual premium in their first three months, and they can project to make $4,000-$6,000 per every agent hired. This leads to an 85% turnover rate in insurance.
Another factor contributing to the high turnover rate is burnout and churn rates among insurance agents. It can take up to six months for an agent to provide optimal customer service, and the cost of recruiting, onboarding, and training new agents can be significant. Insurers are beginning to address this issue by transforming the experience of their agents and call centre agents, creating cultures marked by innovation, collaboration, and smart technology adoption.
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Frequently asked questions
The turnover rate for life insurance agents is around 12-15%, with some sources citing a rate as high as 85%.
There are a few reasons for the high turnover rate in the insurance industry. One reason is the financial incentive for recruiters to put new agents in the office, as they can project to make $4,000-$6,000 per every agent hired. Another reason is the high levels of burnout and churn among insurance agents, which can lead to increased costs for businesses.
To reduce the turnover rate, insurers are transforming the experience of their agents by creating cultures marked by innovation, collaboration, and smart technology adoption.
