The burnout rate within the insurance industry has now reached a critical level.
Everywhere you turn, it seems like brokers are complaining about the long hours, huge workloads, and the lack of predictability.
However, while the state of the market and its many challenges are often listed as a primary reason for this burnout, another culprit may be the internal culture at many brokerages.
Toxic environments are a well-known but barely discussed problem in the industry.
The pressure to work long hours, an emphasis on performance over wellbeing, and an overly competitive mindset can all make even the highest performers look for other places—or even other industries—to work.
But is this something that can be solved? Even better, is it possible to create a new reality in insurance where humans are valued over results?
The Pervasiveness of Toxicity in Brokerages
All you have to do is take a quick look at online insurance forums to find direct evidence: broker burnout is a real thing.
And there’s research that bears this out. Although not focused on wholesale insurance, a new study from Liberty Mutual highlights the issues affecting the insurance industry in general.
It found that over half (51%) of frontline workers say they feel burned out.
Burnout is a direct consequence of a negative work environment.
Unfortunately, toxic workplaces can be found in every industry—not just insurance. According to the American Psychological Association, nearly 1 in 5 workers describe their current workplaces as toxic.
But this only hints at the scope of the problem. When asked to describe if they have ever worked in a toxic workplace, 75% of employees answered yes.
But what do we mean by toxic, exactly?
A work environment becomes toxic when unhealthy behaviors create a culture of persistent negativity at a workplace. This can include leadership that uses fear and intimidation on its employees, rampant gossiping or rumors, discrimination, and a pressure to perform at any cost.
Within the insurance industry, it can be common for workplaces to give more leeway to high earners just because they are pulling in more clients and revenue. This can lead to these individuals treating other staff poorly, which can make an entire workplace feel unhealthy.
The effects of toxic work cultures are well documented.
These environments can result in a range of mental health issues, such as stress and anxiety, depression, and insomnia.
In turn, they are one of the main drivers for workplace attrition. One MIT study found that toxic workplaces are 10 times more likely than poor compensation to lead to high turnover.
This problem in particular is common within the insurance broker business model, where workplace bullying, harassment, and other signs of unhealthy culture have led to over 80% of workers to consider leaving at one point.
How Toxic Work Cultures Make Insurance Worse
Toxic work environments aren’t just bad for the people who work in them. They also hurt the entire business.
To understand how, let’s compare how a healthy insurance brokerage and a toxic insurance brokerage function.
| Toxic Brokerage | Healthy Brokerage | |
| Communication | A lack of trust and unhealthy competition can mean brokers have to wait for days to get internal approvals or to access siloed data. | A willingness to collaborate and work together helps ensure information flows freely between brokers. |
| Stability | A high sense of competition and unsustainable levels of stress creates a high rate of turnover. This level of instability will make the brokerage less attractive to work with. | A team that supports each other and looks out for each person’s wellbeing will be more likely to retain good workers. That will mean stable, long-term relationships. |
| Competitiveness | When individual brokers see each other as threats, they’ll be less willing to share insights and niche expertise. That will make the brokerage as a whole less competitive. | When individual brokers see each other as part of a team, they’ll be more open to supporting each other. This will sharpen everyone’s edge and help the brokerage compete in the wider market. |
| Accuracy | The combination of high stress and low support can make manual errors more common. This is especially true when an unhealthy culture means people are afraid to admit mistakes. | The ability to ask for help when you need it is a hallmark of a healthy workplace. That can help reduce errors and ensure accuracy throughout the organization. |
Red Flags of a Broken Brokerage Culture
One of the worst aspects of toxic work cultures is that, despite their many negative effects, they can sometimes be difficult to identify.
That’s because they don’t happen all at once. Instead, toxic workplaces often come on gradually as the result of poor oversight, persistent negativity, and dysfunction.
But this doesn’t mean you can’t escape one. If you can learn to identify some of the telltale red flags below, you can keep your workplace from inflicting damage on your career.
The Information Black Hole
What happens when you’re looking for insights into a specific market?
If your fellow brokers keep information under guard or otherwise seem reluctant to tell you anything useful, that can be a sure sign of a toxic environment. The same goes for trying to collect carrier feedback.
In contrast, employees at a healthy workplace will share and trade this kind of information openly for the greater benefit of the brokerage.
Technical Debt
What kind of tools does your job give you to complete your tasks?
If they refuse to invest in modern technology and instead expect you to manually enter in data and complete other repetitive tasks by hand, then this is a sign the firm does not value your time. They’d rather save money than help you live up to your potential.
Healthy brokerages won’t have this problem. Instead, they’ll want to do whatever it takes to make sure employees remain as productive and accurate as possible.
Seniority Over Merit
Are the results you produce for the brokerage recognized and rewarded?
If you’re continually passed over for promotions or bonuses simply because you haven’t worked there as long as others, then the environment is likely toxic. This will be especially true if there is no designated path for career advancement at all.
While seniority may certainly matter at a high-functioning brokerage, the work you do matters just as much. As long as you’re producing results, you should be able to climb the career ladder as fast as more experienced brokers.
Reactive Management
What are the circumstances under which you talk with your managers?
If they only interact with you when there’s a problem, then your work culture is probably negative. Likewise, if they try to micromanage and control everything you do, then there’s probably a lack of trust. In either case, they aren’t showing much interest in helping advance your career.
A healthier work culture will have managers who lead proactively instead. This means they take active steps to invest in your professional development skills, such as offering training, holding workshops, and giving you the chance to learn new skills.
Build Your Future Outside the Brokerage Toxic Cycle
Although toxic workplaces may be common within the insurance industry, it doesn’t mean that they are inevitable.
As long as you know what to look for, you can escape an unhealthy culture and start working at a brokerage that allows you to build your career.
Here are some steps you can take to break out of the toxic work cycle:
Perform a Culture Audit
Begin by taking a close look at your current firm.
How many of its traits match the toxic signs we’ve identified above? If you recognize more than one or two of them, it may be time to consider making a move to a healthier workplace.
Turn Specialization Into a Strength
Healthy brokerages care about workers as individuals, which means they’ll see your unique knowledge as a benefit.
Start your search by looking for firms that want specialists instead of just another worker to run the rat race.
Pair Their Values With Your Ambition
The insurance marketplace needs more brokers, which means there’s no reason for you to put aside what you care about to get a job.
Instead, search out firms that show they value their employees’ health and careers as much as they care about profit.
Consider the Power of Technology
We have entered the age of AI. This means that any firm still trying to do tasks the old way is putting their employees at a disadvantage.
Look for brokerages that prioritize their employees’ time by using cutting-edge technology.
Elevate the Human Element
Insurance is and always will be a relationship-driven business.
As advanced as technology gets, this will never change. Make sure whatever firm you choose remembers that humans are the most important aspect of the industry.
The QuoteWell Difference: Our Human+ Approach
Getting rid of workplace toxicity starts with employees standing up and demanding more.
No matter how competitive the marketplace may get, there simply isn’t any reason for brokers to get treated poorly. Recognize this, alongside your own value, and you’ll be able to build the kind of career you deserve.
At least, that’s what we believe at QuoteWell.
Through a combination of AI-powered technology, relationship-driven expertise, and our Human+ approach, we’re creating the kind of workplace that will allow you to fulfill your true potential and achieve wholesale insurance broker success.Let’s see what’s possible—together. Find out how we can grow together.
