What is the future outlook for insurance agents?
Asked by: Leanne Nicolas | Last update: August 7, 2025Score: 4.2/5 (11 votes)
Will insurance agents be replaced?
Will it replace agents? No. Agents simply need to focus on more upmarket and complex insureds. There will also be a semblance of the AI targeted population that prefers to work with an agent directly.
What is the future of insurance industry?
To become true digital leaders, insurers must explore ways to automate and digitize their core value proposition, embedding risk prevention and engineering services directly into the structure of protection products and within routine interactions (e.g., renewing policies, submitting claims).
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.
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).
The Future of Insurance is Not What You Think
What is the failure rate for insurance agents?
A more accurate statement is that 93% of agents choose to leave within three years.
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 type of insurance agent makes the most money?
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
What is the average age of insurance agents?
Insurance agents make on average $51,936 per year. The average age of an Employed insurance agent is 45.9 years old.
What is the hardest part of being an insurance agent?
What is the hardest part of being an insurance agent? The hardest part of being an insurance agent often revolves around the constant need for lead generation and sales. Many agents struggle with the cold calling aspect, where rejection is frequent, and maintaining a steady stream of new clients can be challenging.
What is the biggest threat to the insurance industry?
Cybersecurity threats
75% of US companies are vulnerable to cyberattacks – and, given they hold sensitive client data, insurance firms are some of the most lucrative targets. This doesn't just pose a threat to the data itself; a breach can erode client trust and create long-term reputation damage.
Is the insurance industry a stable career?
Insurance is widely considered an “evergreen career,” one which typically offers excellent job security. Bureau of Labor Statistics research predicts that positions for insurance professionals will likely grow by 6% from 2021 to 2031, with approximately 32,900 new jobs per year.
Will insurance go down in 2025?
Auto insurers will raise premiums by an average of 7.5% in 2025 - with the biggest rate hikes expected from American Family, All State and Liberty Mutual. Drivers in New Jersey, Washington and California will see their auto insurance premiums rise by over 15% in 2025 - the biggest jump in the country.
Is Allstate getting rid of agents?
What does the Allstate Layoff Mean for Allstate Agents? Allstate is not giving up its captive model; they are just making it extremely difficult for their captive agents to grow. Allstate agencies will now be competing directly with Allstate, making them their biggest competitor.
Should you become an insurance agent?
Selling insurance can be a lucrative proposition, with relatively high-paying commissions and a high degree of autonomy with flexible work hours. However, it is not an easy job. You can expect a high rate of customer rejection, stress, and attrition rate.
Do insurance agents get commission every month?
ACA commissions are paid on a monthly basis and carriers typically pay out early in the month, though it can vary. Commissions earned in the last month are distributed as long as the member has paid their premium and the payment has been posted to their account.
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.
Do insurance agents make 6 figures?
A life insurance agent's income potential is uncapped. Some of the highest earners make well over six figures each year, while others choose to work as part-time insurance agents to earn some extra cash.
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.
What is the hardest insurance to sell?
Life insurance is the most profitable—and the hardest—type of insurance to sell.
Why are insurance agents so rich?
One of the primary reasons insurance agents can accumulate wealth is their commission-based income structure. Unlike salaried employees, agents earn a percentage of the premiums they sell to clients. As they build a client base and generate more sales, their income potential increases.
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).
Why do most life insurance agents fail?
The most commonly cited reason insurance agents fail is that they fail to listen to their customers and take the time to find the best product to suit their needs. Agents who bring the right solutions to customers build trust, and that helps them build a book of loyal customers.
Is there a demand for insurance agents?
Job Outlook
Employment of insurance sales agents is projected to grow 6 percent from 2023 to 2033, faster than the average for all occupations.
Why is selling insurance so hard?
There are many challenges facing new life insurance agents. The pay is usually straight commission. Finding qualified customers yourself is notoriously difficult, and the few leads that your company may give you have usually been contacted by dozens of agents already.