Ho Ho Ho, It’s Bonus Season! Are You Getting a Lump of Gold or Coal?
P&C Specialist
While 2025 isn’t expected to be that disappointing, it could be rather ho-hum, with bonuses, on average, expected to rise 2.5% to 5%, according to consulting firm Johnson Associates. Last year, insurance workers were expecting increases of about 5% to 10%, on average.
At property and casualty insurers, bonuses are expected to be 3% to 5% higher, based on the report. The insurance industry has seen a rebound in profits after a series of rate increases and a rare year when a single hurricane didn’t make landfall in the United States. But the size of the bonus could vary a lot from company to company. For life insurance and annuity issuers, Johnson Associates predicts bonuses to be 2% to 4% more than in 2024.
The good news is that even in a challenging year, bonuses within insurance are not typically as volatile as other areas of financial services, where they can drop 20% to 40% in a given year, Johnson said.
Going into next year, increases in base salaries for insurance workers will be in the 3% to 3.5% range, said Alan Johnson, managing director of Johnson Associates. That’s down from the 6% to 8% salary bumps they received during the Covid-19 outbreak.
P&C Specialist / December 9, 2025
