Is there a demand for insurance agents?
Asked by: Isobel Green | Last update: June 26, 2025Score: 4.3/5 (49 votes)
Is there a shortage of insurance agents?
The shortage of experienced insurance professionals creates operational gaps that inhibit growth and increase policyholder risk. And while technology and automation can mitigate capacity constraints, true competitive advantage comes from deep insurance knowledge.
Are insurance agents in high demand?
Job security
The Bureau of Labor Statistics (BLS) predicts that employment of insurance agents will increase about 8% in the next decade, opening an estimated 42,500 jobs each year.
How profitable is an insurance agent?
Typically, a life insurance agent receives anywhere from 30% to 90% of the amount paid for a policy (also known as the premium) by the client in the first year. In later years, the agent may receive anywhere from 3% to 10% of each year's premium, also known as "renewals" or "trailing commissions."
Why do most life insurance agents quit?
Research shows (opens in a new window) that 80% of finance and insurance agents feel they aren't valued at work; they feel they are “only evaluated on what went wrong or could have been done better.” This is a major issue for finding and retaining top talent, which is more important than ever (opens in a new window).
I Asked 166 Life Insurance Agent How Much Money They ACTUALLY Make Per Month
Why is it so hard to be an insurance agent?
Being an insurance agent can be quite stressful due to the high-pressure environment of sales jobs and the need to meet quotas. The uncertainty of income and the hard work required to build and maintain client relationships add to the stress levels.
What is the failure rate for insurance agents?
A more accurate statement is that 93% of agents choose to leave within three years.
What kind of insurance agent gets paid the most?
- Reinsurance Accountant. ...
- Health Insurance Specialist. ...
- Insurance Broker. ...
- Liability Claims Representative. ...
- Insurance Adjuster. ...
- Insurance Manager. ...
- Final Expense Agent. Salary range: $62,500-$98,500 per year. ...
- Life Insurance Actuary. Salary range: $79,500-$98,500 per year.
What is the most profitable type of insurance to sell?
Life insurance is the most profitable—and the hardest—type of insurance to sell. With the highest premiums and the longest-running contract, it brings in cash over a long period of time. In the first year, agents make the largest annual sum on a policy, bringing in anywhere from 40–120% of the policy premium.
How much money do you need to start an insurance agency?
Depending on the size and structure of the business, industry experts estimate startup capital of between $50,000 and $500,000, possibly even more.
What are the cons of being an insurance agent?
Cons of working in insurance sales
For some people, the thought of earning commissions is appealing. For others, it can cause stress and worry about their future financial situation. New insurance agents often work long hours to build and strengthen relationships and get their names out in the industry.
Which state pays insurance agents the most?
Best-Paying States for Insurance Sales Agents
The states and districts that pay Insurance Sales Agents the highest mean salary are New York ($108,960), New Jersey ($106,910), Illinois ($105,150), Minnesota ($100,750), and Massachusetts ($100,590).
Will insurance agents become obsolete?
Independent insurance agencies are not going away. The human touch will remain crucial, especially when dealing with complex insurance products that require nuanced understanding and personal advice.
What is the hardest part of being an insurance agent?
Agents and brokers who listen carefully to what their clients and prospects say will be able to earn their trust, which is the hardest part of their job.
How many insurance agents fail in the first year?
In fact, many agents new to insurance are fearful, knowing they face a high risk of failure. How many agents quit selling insurance? There isn't an exact number. But we figure somewhere between 90% and 95% of agents quit in their first 12 months of receiving their license.
What is the turnover rate for insurance agents?
The industry is finding ways to replenish its ranks because of a high agent turnover rate. Nearly 90% of agents across various lines of insurance, including life, quit within three years, according to life insurance agency management system provider AgencyBloc.
Can I become a millionaire selling insurance?
Some agents, advisors, and multi-line agents made a million dollars in the first year they worked with us selling life insurance! While most of the others it took 2, 3, or more years to make a million dollars per year selling life insurance.
Why do people who sell insurance make so much money?
In essence, insurance brokers provide invaluable expertise to clients, ensuring they have the coverage they need. Their compensation, through commissions and fees, reflects the vital services they offer within the industry.
What line of insurance makes the most money?
Life insurance stands out as one of the most profitable types of insurance due to its steady demand, attractive commissions, high premiums, and long-term policy tenure.
How many policies does an insurance agent sell per month?
How many policies does an insurance agent sell? According to the financial reports, the Official Number is 2.5 policies per month. However, many people just do it part-time.
Is it hard to make money as an insurance agent?
You can make a good living selling life insurance, especially if you continue to earn commissions on policies you have already sold. However, it is not an easy career, as it requires constantly working to find leads, build relationships, and make sales.
What is the best insurance company to work for as an agent?
Farmers Insurance
Farmers Insurance Group is another American insurance company that sales agents and employees find best to work for. It offers a comprehensive range of insurance products and financial services, including auto, home, renters, life, and business insurance among others.
What is the disadvantages of being an insurance agent?
Insurance agents often face pressure to achieve their goals while simultaneously providing exceptional customer service, meeting sales quotas, and staying abreast of industry regulations. This, combined with the responsibility of safeguarding clients' financial well-being, can make for a stressful work environment.
What do insurance companies fear the most?
It's simple: Insurance companies' legal teams hate having to go before juries. Naturally, it's up to juries to apply the law in a fair and even-handed manner. However, it never helps insurance companies to be seen as the villains who are trying to get one over on people in genuine need.
What is the biggest insurance company to fail?
Executive Life Insurance Company is regarded to be the biggest bankruptcy of an insurance company in the United States in the course of recent years. Based in California, the life company had to file for bankruptcy in 1991 following disastrous investments in junk bonds.