Burnout Is Driving Insurance Agency Owners to Sell — But It Doesn’t Have to

While retirement, financial gain, and life-changing events like divorce, disability, or death are common reasons independent agency owners choose to sell, there’s another growing factor that often goes unnoticed: stress and burnout. In fact, 90% of agency owners under 55 who sell their agencies cite burnout as one of their main reasons.

Practical Solutions for Agency Owners Facing Burnout

The pandemic played a major role in this shift. Like many professionals, insurance agency owners had time to reflect on their long-term goals and reassess their priorities. The pressures of navigating an agency through COVID-19 — combined with the hardest insurance market in four decades — created a perfect storm. Drastic rate hikes, reduced market availability, and tightening underwriting guidelines added to the stress, leaving many owners questioning their future in the industry.

For many, it’s not the work of serving clients that’s exhausting — it’s the day-to-day of running a business. Tasks like hiring, managing operations, and dealing with finances often overshadow the rewarding parts of the job. But selling the agency isn’t the only way forward.

Here are five practical solutions for agency owners facing burnout:

1. Hire an operations manager: If business management is your biggest stressor, bringing in a strong operations leader can be a game-changer. You can focus on sales and client relationships while your partner handles internal processes.
   
   
2. Develop a strategic plan: Without a clear growth strategy, running a business can feel overwhelming. A well-defined plan can provide direction, reduce stress, and help you manage carrier expectations.
   
   
3. Bring on a partner: Solo ownership can feel isolating. A partner can share leadership responsibilities, help manage risk, and provide motivation to grow the business together.
   
   
4. Consider a merger: Before selling outright, explore a merger with an agency whose strengths complement your own. A partner who thrives on operations could take those tasks off your plate, while you continue doing what you love.
   
   
5. Build a peer network: Sometimes, just talking to someone who understands can make a big difference. Connect with other independent agents facing similar challenges for support, ideas, and encouragement.
   
   

At AAI, we provide the resources and support you need to regain control, reduce stress, and continue growing. Contact us today to learn how we can help you build a thriving independent agency without burning out.