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What Independent Agencies Need to Know About Pay, Profitability, and the Path Forward


How you pay your people has never mattered more, and the data proves it.

During IIAT’s Joe Vincent Management Seminar on January 26, 2026, IIAT President & Executive Director Marit Peters presented “Agency Compensation 360: Insights and Trends Shaping the Future of Independent Agencies,” a session sponsored by Insurors Group. Drawing on real-world agency data, the session examined how compensation strategies directly impact recruitment, retention, productivity, and long-term profitability.

Why Compensation Is a Strategic Issue

Independent agencies are competing for talent in a tight labor market while managing rising costs and increasing complexity. As Peters emphasized, compensation is no longer just an HR function – it’s a business strategy. Agencies that fail to evaluate how they pay producers and staff risk falling behind peers who are using data to make smarter, more sustainable decisions.

Key Insights from Agency Compensation 360

The session highlighted several important trends affecting independent agencies today:

  • Wide pay variation across agencies: Compensation structures, incentive plans, and revenue sharing differ significantly, even among similar-sized agencies.

  • Misalignment between pay and performance: In many agencies, compensation does not consistently reward growth, retention, or profitability.

  • Producers and staff are paid differently – and should be: High-performing agencies tailor compensation by role rather than using one-size-fits-all models.

  • Benchmarking matters: Agencies that compare themselves to peers are better positioned to identify gaps, control expenses, and plan for growth.

Perhaps most importantly, Peters stressed that compensation decisions should be grounded in data, not assumptions. What “feels competitive” may not be competitive at all.

From Insight to Action

Agency Compensation 360 was built to give IIAT members clear visibility into how their agency compares to others across key compensation metrics. By completing the confidential survey, members unlock access to a customized compensation dashboard that provides actionable benchmarks by agency size and structure.

If you haven’t already, now is the time to participate. Complete the Agency Compensation 360 survey to gain access to the compensation dashboard and use real data to strengthen your agency’s pay strategy, improve retention, and support long-term profitability. If you've already completed the survey, you can explore the dashboard now.

Need assistance? Email comp360@catalyit.com

See Also

Want to dive deeper?

Thanks to our Lead Underwriters, you can watch and listen to the session recording starting Tuesday, February 10th.

Coming Soon!