Solving the insurance industry's turnover rate | PropertyCasualty360 (2024)

FAQs

What is the turnover rate in the insurance industry? ›

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.

Why your turnover matters for your insurer. Insurers infer that businesses with high turnovers work with a lot of clients. Or, that you take on large clients with expensive contracts. Either of these things increases your risk and the chances of a claim.

Retention rate is what separates struggling agencies from thriving ones. The average retention rate for agencies is 84%, but the industry's top agencies maintain a retention rate of 93-95%. A sustained 5% improvement in your agency's customer retention doubles your profit in five years.

Having worked with or around insurance claims for nearly thirty years, I have seen high turnover since the beginning with no sign of it decreasing.

Standard Turnover: The standard turnover refers to the regular, expected level of income or revenue a business generates over a specified period, typically the twelve months immediately before the date of the damage.

Insured turnover refers to sales covered by your premium. It's not necessary to include uninsured sales such as cleared funds on or before delivery, government contracts or business with organisations we haven't covered.

There is a simple formula for calculating the retention ratio: divide a company's retained income by its net income.

A Definition of the Concept

The churn rate is the indicator that allows you to calculate the loss of customers, users or subscribers that your business suffers over a given period of time. The attrition rate is widely used in Banking and Insurance, which are sectors that historically had very low attrition rates.

(Number of employees at the end of a set time period / the number of employees at the start of a set time period) x 100 = retention rate percentage.

Why is being a Claims Adjuster so stressful? ›

Claims adjusters often work long hours, handle difficult clients and situations, and have to manage multiple claims simultaneously. All of these factors can lead to stress and burnout.

While greater use of technology will reduce the administrative burden and cost of claims, there will still be a strong need for people, delivering the creativity of approach and power of empathy so vital to the role of an adjuster.

The burnout rate for life insurance sales agents is high. More than 90% of new agents quit the business within the first year. The rate increases to greater than 95% when extended to five years.

That is a 90% failure rate for new insurance agents.

Most independent marketing organizations will train insurance agents on all the products they want them to sell.

Turnover rates vary significantly from industry to industry. However, turnover rates should (ideally) be lower than 10%, which is a very healthy turnover rate across the board.