Insurance Brokerage Industry Continues to Compete Aggressively for Talent Despite Stabilizing Labor Market Conditions

Woodmere, OH – MarshBerry, a global leader in investment banking and consulting, is pleased to announce the release of its 2026 Insurance Agency & Brokerage Compensation Study, revealing that competition for skilled talent within the insurance distribution industry remains intense.

Drawing on data from nearly 300 U.S. insurance agencies and brokerages, the study highlights persistent hiring challenges, evolving compensation strategies, and the increasing importance of flexibility and benefits in attracting and retaining top performers.

While broader labor market conditions began to stabilize in 2025, insurance brokerages continue to face a highly competitive environment for experienced talent—particularly in production and client-facing roles. More than one-third of firms report that hiring has become more difficult over the past year, underscoring ongoing pressure to attract and retain skilled professionals.

At the same time, workforce trends point to a more balanced—but still constrained—labor market. Employee turnover declined to 15.1%, reflecting improved retention, while hiring activity remains elevated, with new employees representing 19.3% of total staff. Together, these dynamics reinforce that demand for talent continues to outpace supply.

“Competition for experienced talent is still firmly in place,” said John Wepler, MarshBerry Chief Executive Officer. “Firm leaders must remain deliberate in how they attract, retain, and incentivize their workforce.”

Firms continue to rely heavily on compensation as a primary lever, though increases are moderating after several years of accelerated growth. Salary gains were observed across all roles in 2025—led by service staff at 5.0%, followed by executives at 4.6%, support staff at 4.0%, and producers at 2.2%. However, expectations for 2026 point to slower, more sustainable increases as firms balance cost pressures with competitive positioning.

Despite labor and cost pressures, the insurance brokerage industry remains financially resilient. Firms reported 7.5% organic growth in 2025 and improved profitability, with margins rising to 20%. This strong performance continues to support ongoing investment in people, positioning talent as a critical driver of sustained growth and long-term value creation.

Study participants receive a complimentary report. The report can be purchased for $3,500 and includes a data supplement that summarizes the information from the PDF report into easy-to-read tables. No specific company information is published or identified in the report or the supplement.

If you have questions about how MarshBerry helps firms create their path forward, in the U.S. or across Europe, please contact us today.

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MarshBerry is a global leader in investment banking and strategic consulting for the financial services industry. With over 40 years of experience, MarshBerry empowers firms in insurance brokerage & distribution, wealth advisory & retirement planning and accounting & tax practices to achieve long-term growth, maximize value, and navigate every stage of ownership. Core offerings include Investment Banking services such as Merger & Acquisition Advisory and Capital Raising, as well as Financial Consulting in Strategic Planning, Valuations, and Perpetuation Planning. MarshBerry also provides specialized support in Organic Growth Consulting, Executive Peer Exchange, Agency Network and Market Intelligence & Performance Benchmarking. For more information, visit www.MarshBerry.com.

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