Employee Retention in Insurance: Strategies, Perks, and Benefits to Reduce Turnover in 2025

Apply these 12 effective employee retention strategies in the insurance sector. Enhance workforce satisfaction and longevity with Empuls now.

Written by Xoxoday Team, 27 Apr 2025

The insurance sector is a dynamic and competitive industry that relies heavily on skilled professionals to serve clients, assess risk, and make informed decisions. Employee retention is a critical factor in the success of insurance companies. 

Recent studies reveal that employee retention rates in the insurance industry hover between 12% and 15%, with voluntary turnover rates showing an upward trend. Elevated voluntary turnover can lead to heightened expenses, diminished productivity, and a loss of valuable talent. However, there's no need to worry. 

In this blog post, we'll explore proven strategies to boost employee retention in the insurance industry, empowering you to keep your valuable team members amidst the intense competition in the insurance market.

The current state of employee turnover and retention in the insurance sector

According to a study by the Jacobson Group and Aon conducted in the third quarter of 2021, numerous professionals in the insurance industry are reconsidering their current roles and actively exploring alternative opportunities. The recruitment landscape, particularly for seasoned professionals, is anticipated to become notably challenging in the upcoming months.

Employee turnover and retention are critical issues for the insurance sector, as they can significantly impact operational efficiency, client relationships, and overall business performance. Some key factors influencing the state of employee turnover and retention in the insurance industry include:

  • Highly competitive market: The insurance sector is known for its competitiveness, with companies vying for top talent. This can result in increased turnover as employees may be tempted to explore opportunities with competitors offering better compensation packages or career advancement prospects.
  • Skill shortages and talent war: The insurance industry often faces challenges in finding and retaining individuals with specialized skills, such as underwriting expertise, actuarial skills, and knowledge of evolving technologies. The talent war for these professionals can drive turnover rates.
  • Changing workforce expectations: Modern employees, particularly younger generations, often prioritize factors like work-life balance, career development, and a positive workplace culture. Companies that fail to meet these expectations may experience higher turnover rates.
  • Technological disruption: The adoption of new technologies, such as artificial intelligence and automation, has been transforming the insurance industry. Employees may leave if they feel their skills are becoming obsolete or if they perceive a lack of support for adapting to technological changes.
  • Remote work trends: The COVID-19 pandemic accelerated remote work trends across industries, including insurance. Companies that successfully adapt to flexible work arrangements and provide the necessary tools for remote collaboration may have an advantage in retaining employees.

The importance of employee retention in the insurance sector

Employee retention is a critical pillar for success in the insurance industry. Unlike many other sectors, insurance companies rely heavily on skilled professionals who not only understand complex regulations but also build lasting relationships with clients. When employees leave, they take valuable expertise, customer trust, and institutional knowledge with them — all of which are difficult and costly to replace.

High turnover rates can severely disrupt operations. The process of recruiting, onboarding, and training new hires demands significant time and resources. In the meantime, remaining team members often face higher workloads, leading to burnout, lowered morale, and, ultimately, even more attrition.

Moreover, customer relationships — the lifeblood of insurance companies — suffer when experienced employees exit. Clients value continuity, and frequent changes in account managers or service teams can erode trust and loyalty, directly impacting business performance.

Investing in retention not only reduces hiring costs but also strengthens organizational stability, enhances employee morale, and drives better client satisfaction. Companies that prioritize employee retention also position themselves as employers of choice, attracting top talent in an increasingly competitive job market.

Here’s why employee retention matters deeply in the insurance sector:

  • Preserves client trust and loyalty: Long-standing employees build strong relationships with clients, leading to higher client retention and satisfaction.
  • Protects specialized knowledge: Experienced professionals hold critical underwriting, actuarial, claims, and regulatory expertise that is hard to replace.
  • Reduces recruitment and training costs: Hiring and onboarding new employees is expensive and time-consuming; high retention keeps operational costs lower.
  • Boosts team morale and stability: A stable workforce fosters better collaboration, higher engagement, and a more cohesive workplace culture.
  • Enhances company reputation: Organizations known for valuing and retaining talent attract high-performing candidates looking for career stability.
  • Improves business performance: Experienced teams drive better decision-making, faster problem-solving, and more efficient client service.
  • Supports adaptation to industry change: Retained employees, familiar with company processes and culture, adapt more easily to new technologies and evolving business models.

In an industry where client trust, technical expertise, and regulatory knowledge are paramount, retaining experienced employees is not just important — it’s essential for long-term growth and competitive advantage.

What insurers can do to attract and retain employees?

Recent insights from McKinsey on employees' perspectives on work and their priorities in the work environment present intriguing considerations for insurers. McKinsey analysts discovered that individuals departing from companies often experience feelings of exhaustion and overwhelm, leading them to question the meaning of their work and contemplate alternative paths. 

In this context, the employee experience emerges as a genuine focal point for insurers aiming to retain their seasoned workforce.

What are employees seeking? 

McKinsey observes,

"Workers yearn for trust, social cohesion, and purpose. They seek recognition for their contributions and genuine collaboration within their teams. They aspire to have well-defined responsibilities and opportunities for continuous learning and growth. They anticipate their sense of purpose aligning with that of their organization. Additionally, they desire a suitable physical and digital environment that affords them flexibility to attain that elusive work-life balance."

Key employee retention strategies in the insurance sector

Here are 8 Employee retention strategies that companies in the insurance sector must implement in 2024. 

1. Career development programs

One effective strategy for retaining employees in the insurance sector is to invest in comprehensive professional development programs. Insurance professionals often value opportunities for continuous learning and skill enhancement. By offering workshops, training sessions, and mentorship programs, companies can demonstrate a commitment to their employees' career growth. 

This not only enhances the skill set of the workforce but also fosters a sense of loyalty among employees who feel that their professional development is a priority for the organization.

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A notable example of a company implementing this strategy is Progressive Corporation. Progressive is known for its commitment to employee development.

The company offers various training programs, mentorship initiatives, and educational opportunities to help employees grow in their careers. 

Progressive's "Leadership Essentials" program, for instance, focuses on developing leadership skills among employees, contributing to career progression and enhancing overall job satisfaction.

2. Well-structured wellness and resilience programs

Beyond physical fitness initiatives, insurance companies must focus on mental resilience, stress management, and emotional well-being to retain employees in a high-pressure environment. Offering access to mindfulness workshops, mental health support, and resilience training can be highly impactful.

Empuls integrates wellness initiatives like fitness challenges, meditation programs, and mental health resources directly into the employee experience, making it easier for insurers to promote holistic well-being and increase long-term loyalty.

3. Competitive compensation packages

Competitive compensation is a crucial factor in retaining top talent in the insurance sector. Insurance professionals, especially those with experience and expertise, are in high demand.

To prevent attrition to competitors, insurance companies should regularly review and adjust their compensation packages to align with industry standards. This includes not only base salaries but also benefits such as health insurance, retirement plans, and performance-based incentives. 

A well-structured and competitive compensation package not only attracts skilled professionals but also reinforces the value the company places on its employees, contributing to higher retention rates.

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For example, Aflac is a prominent example of a company excelling in this strategy. Aflac is known for its competitive compensation packages that include not only competitive base salaries but also comprehensive benefits.

The company offers health and dental insurance, retirement plans, and various performance-based incentives. Aflac's commitment to providing a total rewards package helps in attracting and retaining skilled professionals in the highly competitive insurance industry.

4. Flexible work arrangements

Embracing flexible work arrangements is an increasingly effective strategy for retaining employees in the insurance sector. This involves providing options such as remote work, flexible hours, or compressed workweeks to enhance work-life balance and accommodate diverse employee needs.

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The Hartford is a leading insurance company that has successfully implemented flexible work arrangements. The company offers telecommuting options and flexible scheduling, allowing employees to balance their professional and personal responsibilities effectively.

By promoting a flexible work culture, The Hartford not only supports employee retention but also enhances job satisfaction and work engagement.

5. Enhanced employee perks and benefits programs

Offering meaningful perks and benefits has become a cornerstone of employee retention strategies in the insurance sector. Today’s workforce expects more than just traditional compensation — they seek financial wellness support, exclusive discounts, health benefits, and flexibility that improve their everyday lives.

Platforms like Empuls empower insurance companies to offer a wide range of perks that employees truly value.

Empuls employee perks and benefits programs

Through Empuls, organizations can provide access to:

  • Tax-free fringe benefits that help employees save more from their earnings.
  • Early wage access, allowing employees to tap into their earned salaries before payday, offering crucial financial flexibility.
  • Comprehensive employee discounts across popular brands, travel, wellness, and entertainment categories.
  • Customizable employee perks programs that boost job satisfaction and strengthen loyalty.

By offering these financial and lifestyle benefits, insurers can address the real needs of their workforce, reduce financial stress, and create a supportive work environment that employees are less likely to leave.

6. Employee recognition and rewards programs

Implementing employee recognition and rewards programs is a strategy that focuses on acknowledging and celebrating the contributions of insurance professionals. This can include performance bonuses, employee of the month awards, or other recognition initiatives to boost morale and job satisfaction.

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Allstate Insurance Company is known for its effective employee recognition programs. Allstate places a strong emphasis on acknowledging and rewarding employees for their achievements.

The company's "Circle of Champions" program, for instance, recognizes and rewards top-performing agents for their exceptional contributions.

By celebrating successes and fostering a culture of recognition, Allstate enhances employee motivation and loyalty.

7. Real-time employee feedback and pulse surveys

Continuous feedback plays a pivotal role in identifying workplace issues before they escalate into reasons for employee exit. Instead of relying solely on annual reviews, insurance companies can gather frequent feedback through quick pulse surveys, engagement polls, and one-on-one check-ins.

Empuls makes this easy by offering built-in pulse surveys and feedback tools that help insurers measure employee sentiment in real-time. Acting on timely feedback strengthens trust, boosts satisfaction, and improves retention.

empuls surveys

8. Structured onboarding and mentoring programs

Implementing structured onboarding and mentoring programs is a retention strategy focused on helping new hires integrate seamlessly into the company culture and providing ongoing support throughout their careers.

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Chubb Limited is an insurance company known for its robust onboarding and mentoring programs. Chubb's onboarding process is designed to acclimate new employees to the company's values, goals, and work culture. 

Additionally, the company has a mentorship program that pairs new hires with experienced professionals to facilitate knowledge transfer and career guidance. Through these initiatives, Chubb fosters a sense of belonging and support, contributing to higher employee retention.

9. Personalized recognition experiences

Generic recognition loses its charm quickly. Insurance professionals, especially those in specialized roles, expect personalized acknowledgment that reflects their unique contributions. Personalized rewards, milestone celebrations, and customized thank-you notes can make employees feel truly valued.

With Empuls, companies can personalize recognition at scale — offering customized messages, tailored rewards, and personalized experiences based on each employee’s achievements and preferences, making every recognition moment more meaningful.

Send experience rewards via empuls

10. Employee incentive programs

Implementing employee incentive programs involves offering additional rewards and recognition for achieving specific goals or milestones. This strategy motivates employees by linking their performance to tangible rewards, fostering a sense of accomplishment and job satisfaction.

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State Farm Insurance is known for its successful implementation of employee incentive programs. The company recognizes and rewards high-performing agents and teams through incentive trips, bonuses, and other performance-based benefits.

By aligning incentives with individual and team achievements, State Farm not only boosts employee morale but also encourages a culture of continuous improvement and dedication.

11. Building social connections at work

Strong workplace relationships are key to employee happiness and retention. Insurance companies can create community-building initiatives like virtual coffee chats, interest-based groups, gamified team challenges, and informal meetups to foster internal bonds.

Empuls helps organizations nurture these connections through features like social intranets, employee communities, and peer-to-peer recognition spaces, creating a more connected and supportive workplace where employees feel like they belong.

Empuls social intranet

12. Diversity, equity, and inclusion initiatives

Prioritizing diversity, equity, and inclusion (DEI) initiatives is a strategy that focuses on creating an inclusive workplace culture where employees from diverse backgrounds feel valued and supported. This strategy contributes to a sense of belonging, which is crucial for long-term employee retention.

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AIG (American International Group) is actively engaged in promoting diversity and inclusion within its workforce. AIG's DEI initiatives include mentorship programs, employee resource groups, and training on unconscious bias. By fostering an inclusive environment, AIG not only attracts diverse talent but also retains employees who appreciate and thrive in a workplace that values and celebrates differences.

Increase employee retention in the insurance industry with Empuls!

Employee retention challenges in the insurance sector demand a modern and comprehensive approach — and that's exactly where Empuls steps in. Built to create more connected, engaged, and appreciated workplaces, Empuls provides insurance companies with everything they need to retain their top talent in a highly competitive market.

Increase employee retention in the insurance industry with Empuls!

Here’s how Empuls strengthens employee retention for insurers:

  • Continuous recognition and rewards: Empuls makes it easy to celebrate employee achievements instantly, ensuring timely recognition for high performance, customer service excellence, and major milestones — key drivers of loyalty in the insurance industry.
  • Dedicated employee engagement platform: Through social intranet tools, Empuls builds strong bonds among teams, creating virtual communities, interest groups, and peer-to-peer connections that improve workplace satisfaction and reduce voluntary turnover.
  • Actionable surveys and feedback loops: Empuls empowers insurance companies to listen actively through regular pulse surveys, engagement polls, and feedback channels, ensuring that employee concerns are heard and addressed before they turn into attrition risks.
  • Built-in well-being programs: Wellness is no longer optional — it’s essential. Empuls supports mental health and physical wellness through platform-based challenges, activities, and resources that align perfectly with the rising well-being expectations of insurance professionals.
  • Flexible rewards marketplace: Insurance employees value choice. With Empuls, they can pick from thousands of gift cards, experiences, and wellness rewards across 75+ countries — making recognition more personalized, meaningful, and memorable.
  • Budget-friendly engagement strategies: Empuls helps insurers manage reward budgets efficiently without compromising the impact. Companies can set flexible budgets, track spending, and measure the ROI of their recognition programs easily through detailed analytics.

In a sector where skilled professionals expect more from their employers — not just in compensation but in meaningful workplace experiences — Empuls helps insurance companies build cultures that employees want to stay part of.

Conclusion

The insurance sector's commitment to effective employee retention strategies is paramount for sustained success. Through initiatives such as professional development, competitive compensation, flexible work arrangements, recognition programs, well-being initiatives, structured onboarding, employee incentives, and diversity and inclusion efforts, insurance companies can foster a positive and supportive workplace culture. 

These strategies not only attract top talent but also contribute significantly to employee satisfaction, engagement, and long-term retention, ultimately strengthening the industry's competitive edge.

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