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Better pay decisions start with better data
Compensation has changed. Pay is more transparent, employees are comparing offers more closely, and agency leaders are under more pressure to explain how compensation decisions are made. That is exactly why Agency Compensation 360 matters. Built specifically for independent insurance agencies, the study gives owners and principals credible benchmarks on compensation, benefits, staffing, and outsourcing so they can make smarter decisions with more confidence.
What the Q1 results are telling us
The Q1 national results provide a strong early snapshot of today’s agency workforce. The report includes 1,322 respondents from agencies across a wide range of sizes, structures, and markets, creating a broad benchmark for the independent agency channel. Personal lines accounts for the largest share of revenue among participants, followed by commercial lines.
One message comes through clearly: the talent market is still tight. Nationally, agencies reported an average of 14.2 full-time W-2 employees, 1.4 1099 employees, and average annual payroll of $1,361,301. Nearly half expect staffing to remain mostly unchanged over the next year, while many others still expect growth. Payroll expense came in at 43.4% of revenue, which the report notes is healthy, but tight, for a service business.
That is an important signal for agency leaders. Even if your headcount is holding steady, the pressure to attract and retain the right people is not going away.
Benefits still play a major role
The Q1 data also reinforces a point many agency owners already feel: salary is only part of the compensation conversation. Nationally, 63.7% of agencies offer group health insurance, 49.9% offer dental, 43.4% offer vision, and 51.8% offer a 401(k). Paid family leave is offered by 42.1% of participating agencies.
In a competitive hiring environment, benefits still matter. They help agencies stand out, strengthen retention, and tell a broader story about how the agency invests in its people.
One trend agency owners should not ignore
Some of the most valuable insight in the report comes from the role-based compensation data. For producers, national median commission rates came in at 50% for new personal lines business and 45% for new commercial business. For account managers and CSRs, median pay rises with experience, but the report highlights a more important issue beneath the surface: newer hires are often coming in at higher salaries, while long-tenured employees may be lagging behind market rates.
That creates potential internal equity problems and retention risk. For agency principals, this is where benchmarking becomes especially valuable. It is not just about knowing what the market pays. It is about spotting pay compression and compensation gaps before they become bigger problems.
Agencies are outsourcing with intention
The Q1 results also show that agencies are being strategic about outsourcing. The most commonly outsourced functions are customer service or policyholder servicing, marketing and communications, and accounting or bookkeeping. The report’s takeaway is especially useful: agencies are using outsourcing to offload back-office and specialized support, not to replace client-facing talent.
That points to a practical strategy many agencies are adopting right now—protect the customer experience while finding smarter ways to manage overhead and capacity.
Texas stands out for size, stability, and discipline
For Texas agencies, the state workforce snapshot adds even more context.
Texas respondents reported an average of 31.9 full-time W-2 employees, 1.5 1099 employees, and average annual payroll of $3,376,187. Average payroll expense came in at 42.5% of total agency revenue. Half of Texas agencies expect staffing to remain mostly unchanged in the year ahead, while 47% expect some level of growth. Texas agencies also lean slightly toward a tiered customer service model, with 52% using that approach.
Taken together, those numbers suggest that Texas agencies tend to operate with larger teams, measured growth expectations, and a disciplined approach to payroll. For agency owners in Texas, that makes the state-level data especially useful. It gives you a more relevant benchmark than national averages alone.
Why Agency Compensation 360 matters
The real value of Agency Compensation 360 is not that it tells agencies to copy one another. It is that it gives leaders a stronger foundation for decision-making. The report makes that point well: this is a benchmark, not a blueprint. Used the right way, the data helps agencies validate direction, stay current on market trends, and make thoughtful compensation decisions before issues surface.
Explore More Q1 Insights on Catalyit and Download the Report
The Q1 results are only the beginning. Visit Catalyit’s Q1 National Insights page to explore more highlights from the Agency Compensation 360 study and download the full report.
Already completed the survey? Log in to the results dashboard to dig deeper into the data by role, agency size, state, and more.
NOTE: you must be an agency owner or principal to have access to the survey and dashboard.
Need assistance? Email comp360@catalyit.com
