Compensation Trends Reshaping Client Service Salaries Within Insurance Agencies

Following numerous requests for insurance industry compensation information, our team at Capstone began tracking and analyzing compensation data obtained from our recruiting activities. Our most recent report came out in February 2024 with a seven-year look at compensation trends (2017-2023). Our goal is to highlight trends and provide clarity for insurance agencies as they evaluate compensation structures, assess employee engagement and address the important question of competitiveness.

While our data analysis spans all agency disciplines – sales, service and leadership – this article is based on our findings for customer service compensation. With roles such as CSR, account managers and account executives accounting for over 60% of agency hires, it is imperative that customer service pay is the focus of compensation reviews. The following are key insights and surprising findings from Capstone Search Group's 2024 Insurance Agency Compensation Report.

Specialization affects property/casualty service salaries. 2023 salary ranges as per level of service are given below. Agencies pay commercial line account managers with consistent vertical expertise and large account, risk management experience at the top end of the spectrum, as well as personal line account managers who are skilled client engagement leaders with high net worth/private client segments .

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

Salaries for P/C account managers continue to rise. The average account manager salary exceeds $80,000 in 2023. Two major factors contributed to this growth. At first, agencies used generous compensation packages to attract new employees. Second, agencies revised their internal salary brackets to retain experienced employees.

• 7-year change (2017-2023): +19.05%
• Highest salary for 5 years (2019-2023): $100,000
• 5-Year Salary Reduction (2019-2023): $57,000

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

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

If salaries over $70,000 become the norm, agencies need to rethink CSR compensation bandwidth to be competitive.

There remains a large gap between benefits and P/C service compensation. A seven-year look at our compensation figures shows no indication that the gap between property/casualty and profit compensation will narrow. Insurance agencies consistently pay higher average salaries at all benefits service levels, with the most significant differences showing in entry-level analyst and top-level account executive roles. case in point:

• Employee benefit account manager compensation skyrocketed. The average employee benefits account manager salary was $90,625, a 22% increase from the average salary just two years earlier.
• Entry-level benefits analysts are well compensated. In 2023, the average employee benefits analyst salary increases to $63,000, a 5.8% increase from 2022. They earned significantly more (13.75%) than their P/C CSR counterparts, whose average salary in 2023 was only $55,384.
• Profit account executives continue to receive higher salaries. In 2023, the average employee benefits account executive salary was $139,640, which was 16% higher than the average P/C account executive salary of $120,226. Another notable trend is the increase in salary ranges. Between 2022 and 2023, low employee benefit account executive pay rises from $108,000 to $111,000, and high from $170,000 to $205,000.

To ensure hiring success in 2024, it is imperative that your insurance agency establish a strong talent acquisition strategy focused on competitive compensation. By doing this, you can focus on recruiting new talent, refining your onboarding processes, and ensuring the loyalty of your current employees.

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

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