The insurance industry has always demanded resilience, but today’s hard market is testing independent agencies like never before. Skyrocketing premiums, tighter underwriting and relentless sales pressures are creating a high-stress environment — and it’s taking a toll on agency staff, according to a new report.
One of the biggest challenges independent insurance agencies face is staff burnout is the effect on operations and employee morale, according to the 2025 Independent Agents at Work Study by Liberty Mutual and Safeco.
Half of all independent agency employees report feeling burned out, and 87% say their workload has increased over the past year. Among frontline, customer-facing staff, two-thirds say they frequently feel stressed, and 57% feel both mentally and physically exhausted
Burnout has contributed to job hunting among agency employees. While 39% of frontline staff overall say they have considered leaving their job, those experiencing burnout were more than twice as likely than others to express interest in seeking a new role.
For agency owners and managers, the message is clear: the support strategies you’ve relied on in the past aren’t enough anymore.
A disconnect between intention and outcome
Most agencies think they’re supporting their teams effectively. The majority say they offer flexibility, promote work-life balance, and support employee mental health. Employees themselves report finding purpose in their work (85%) and joy in what they do (73%).
Yet burnout rates remain alarmingly high.
The reason? Traditional efforts focused on the individual — like wellness programs or work-from-home flexibility — are helpful but not sufficient.
Burnout is a business risk
Beyond morale, burnout presents a serious threat to business continuity and growth. Burned-out employees are more than twice as likely to consider changing jobs. Nearly 40% of frontline staff have thought about leaving their current position, even though most want to stay in the industry. That means the problem isn’t insurance — it’s the work environment.
And with M&A activity shaking up agency culture, some employees feel even more uncertain about their roles and futures. Agencies that don’t act now risk losing experienced staff and struggling to recruit new talent.
Technology can help
One of the clearest findings from the Independent Agents at Work Study is that agencies investing in digital tools have significantly lower levels of staff burnout. Technology that reduces administrative friction and improves customer communication — such as real-time chat, recorded video proposals, marketing automation, and self-service tools — can lighten the load on employees and improve their job satisfaction.
As one CEO told surveyors: “Having the right AMS and digital assistants is integral. Virtual tools can take work off producers’ plates and allow staff to focus on what they do best — serving clients.”
Culture still matters — but it must evolve
Workplace culture remains a critical factor in employee well-being. The most successful agencies are actively fostering a supportive, collaborative atmosphere. That includes:
- Offering flexible and hybrid work models
- Hosting team-building events to boost morale
- Investing in continuous learning and professional development
- Encouraging self-care and work-life integration
Programs like CPIA can help producers stay current, connect with peers, and feel empowered to manage the challenges of today’s market.
What agencies can do now
By treating burnout as a business issue—not just a personal one—agencies can position themselves to retain talent, deliver better service, and stay competitive. Steps agency leaders can take to combat burnout include:
- Evaluating your tech stack: Adopt tools that streamline customer interactions and reduce manual tasks.
- Reviewing job roles and workflows: Look for inefficiencies or overlaps that may be inflating workloads.
- Offering flexible work options: Allow hybrid schedules and trust employees to manage their time.
- Prioritizing culture-building and development: Host team-building activities and check in regularly with staff.
- Investing in professional growth: Provide access to learning opportunities, industry certifications, and mentorship.
- Supporting staff: Encouraged agents to take charge of their well-being and step up self-care practices during stressful periods at work.
