What our 2023 survey says about broker job satisfaction

Beyond recruiting challenges, data from Canadian Underwriter’s 2023 National Broker Survey show retention will continue to be a major issue for property and casualty (P&C) insurance brokers this year.

The survey, answered by more than 150 brokers nationwide, asked about the strongest challenges facing their distribution channel. It was fielded in Feb. 2023 and made possible with the support of Sovereign Insurance.

When asked whether they planned to leave the brokerage profession sometime in the next three years, almost a third (32%) of brokers said they were either highly likely (18%) or likely (14%) to do so. That’s an 8% jump from 2022 and 4% higher than the pre-pandemic figure of 28% seen in 2019.

Meanwhile, compared to numbers over the past five years, the percentage of brokers who said they were staying (unlikely or highly unlikely to leave the business) is statistically flat at 56% in 2023.

Factors influencing loyalty included gender — 36% of women said they’re highly likely or likely to leave the business, compared with 30% of men. But numbers for those who said departure was unlikely or highly unlikely tracked far more closely at 55% for men and 56% for women.

Not surprisingly, the percentage of brokers thinking of leaving within three years is highest (44%) for those who’ve been in the business for more than three decades. In fact, more than a dozen of the verbatim responses keyed to this question were a single word: “retirement.”

Brokers with 16 or fewer years of service were next most likely to leave (29%) and those with between 16 and 30 years of experience had the coolest heels at 25%.

Among those not planning to leave, one male respondent at a smaller brokerage said he’s “not likely to find a profession that provides the benefits of flexibility and income.” Meanwhile, a newer hire at a medium-sized firm said the industry offers her good pay, lots of training and potential for growth.

Another woman who’s newer to the industry said, “I am in a position where I can work from anywhere and that gives me the flexibility to travel and work from where I am.”

Smaller brokerages with fewer than 20 employees faced the highest risk of departure (40%) and the lowest expectations for brokers sticking around (49%), compared with medium-sized firms with 20-to-99 employees (25% who indicated they’d likely or very likely leave, and 60% who said they’ll stay), and firms with 100 or more people (35% said three more years would be enough, and 55% planned to stay put).

One of the most telling written comments about how newer hires see the business came from a younger broker at a large firm who indicated she’d likely leave within three years, due to both poor pay and tedious processes.

“Commissions from carriers aren’t high enough for us to be paid adequately for what we do, especially with our responsibilities growing. As more and more companies are developing their own broker portals, most of our easy day-to-day responsibilities now take at least triple the time, as we are now processing applications and changes instead of sending for underwriting to complete,” she said.

“My book of business hasn’t grown but I struggle to keep up with it now that these systems have been brought in. We are at a greater risk of E&O as the carriers are constantly changing rules without adequate notice to brokers. And with 10 different carriers that are all trying to keep up with the ever-changing market, it makes our jobs as brokers near impossible.”

Another broker was even more blunt about why they’re considering leaving the industry: “Low wages, lack of great infrastructure (systems, portals and communication), and overwhelming work.”

 

Feature image courtesy of iStock.com/Tanaonte