The case for insurance agents to adopt hybrid work

Over the last few years, digital has not only transformed the customer experience in insurance – it’s also transformed the employee experience. 

Digital tools save independent insurance agency employees time and energy. They simplify routine tasks and free up time for employees to focus on building relationships with clients. 

During COVID-19, digital also transformed where and how employees work. According to research by Liberty Mutual and Safeco Insurance, before COVID-19, just one-third of agencies had employees that worked remotely. When the pandemic hit, agencies that already had digital solutions in place were able to quickly transition to remote work without too much disruption in workflows. At the height of the pandemic, 78% of agencies said some or all of their employees were working remotely. 

Returning to in-person work
As employees got used to working from home, many found they preferred the flexibility of working remotely at least part of the time. Surveys of both the broad workforce and the insurance industry in particular have found that a majority of workers prefer hybrid working arrangements. 

However, as agencies chart a path forward, many agency leaders are eager to get their workers back into the office full-time. Liberty Mutual and Safeco’s 2022 Agency Growth Study surveyed more than 730 independent agents and found that 56% planned to be back in the office full-time in 2022. Less than one-third planned to be hybrid, with an average of two days per week of remote work. 

The research also found that most agencies are hesitant to hire outside their geographic area. In spite of having the capabilities to do so, 64% of agency principals and managers said they were not likely to hire remotely. 

When asked their reasons for wanting to hire locally, agency leaders said they want employees who have local knowledge and can engage in the community.

“I need to have people who can augment my reach in my own community,” an agency leader in Idaho wrote, “people who can meet physically with prospective clients when I cannot and be available to take a premium or help sign paperwork. I’m more likely to bring someone in who can do that locally.” 

A disconnect in attitudes about WFH 
After (in some cases) years of working remotely, employees have come to expect flexible work options. Accenture found that 83% of workers prefer hybrid work arrangements. And Bloomberg found that nearly half of millennial and Gen Z workers would consider quitting if their employers weren’t flexible about remote work. 

This suggests that pushing employees back into the office may hurt recruitment and retention. It also seems at odds with agents’ and agency leaders’ largely positive views of remote work. 

Liberty Mutual and Safeco Insurance’s survey found that more than half of respondents that worked remotely at least one day per week said their work-life balance and personal happiness were better at home than at the office. Agency staff were more likely than principals to see the benefits of working from home –  67% of agency staff said their work-life balance was better at home as opposed to 48% of agency principals, while 55% of staff said they were more productive at home and 41% of principals agreed. 

The only area that both agency principals and staff said was not better from home was collaboration with colleagues. However, 63% of staff and 53% of principals said collaboration was about the same as working from home or at the office. 

What the top agencies are doing 
Remote work and digital ways of doing business don’t have to be all or nothing. As insurance agencies find a way forward in the new era of work, they can blend pre-pandemic best practices with the insights gained from the digital acceleration prompted by COVID-19. 

The fastest-growing agencies are doing just that: rather than forcing employees back into the office full-time, top agencies are adopting flexible, hybrid working arrangements. 

Roughly one-third of the respondents in Liberty Mutual and Safeco’s 2022 Agency Growth Study said their agency is aiming for aggressive growth, such as doubling the agency size in five years. These growth-focused agencies are growing revenue at a rate of 22% year-over-year – more than double the growth rate of agencies that are planning for slow and steady growth. 

Growth-focused agencies are more likely to hire outside of their geographic area, with more than half of agency leaders saying they are likely to hire remotely, compared with just 28% of slow and steady agencies.  

“We are looking for talent,” wrote an agency leader in California. “It is tough to find. The pandemic taught us that we don’t all need to be under one roof.” 

When talking to potential employees about what makes their agency a great place to work, employees in growth-focused agencies are more likely to emphasize flexible work location and opportunities to work with current technology. They are also significantly more likely to embrace video, allowing them to stay connected with current and potential clients no matter where they are working from. 

The most effective remote work setups are not one-size-fits-all. Some employees prefer to be in the office, while others may want more flexibility. Agency leaders would do well to work with employees to build structures that benefit everyone. 

Agencies that are willing to evolve will see the benefits. As the research shows, embracing remote work makes employees happier, gives agencies access to a wider pool of talent and helps them more effectively attract and retain the next generation of agency leaders.