Insurance Agent Trends and Statistics for 2024 (2024)

FAQs

What percentage of insurance agents are successful? ›

An insurance agent can find success when they set reasonable expectations, develop a robust support system, and focus on putting their customers' needs above their own. It is estimated that new insurance agents experience a 30% to 50% success rate, with this figure gradually dropping over time.

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.

Failure to work hard is one of the top reasons people in this industry want to call it quits. While it's true that this job isn't easy, it's also true that it can be very rewarding when you allow it to be. As an insurance agent, you have daily opportunities to change your clients' lives for the better.

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.

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.

The Key To New Agent Insurance Sales Success! Dear Friends, Around 80% of new insurance agents hired by independent marketing organizations fail and quit within their first 12 months of getting their license. And then within 5 years, 80% of the remaining new insurance agents will struggle and quit!

Highlights: Key Facts About Insurance Agents in 2024

On average, 57.9% of first-time insurance exam takers pass the test. Insurance agents make on average $51,936 per year. The average age of an Employed insurance agent is 45.9 years old. In the next 10 years, the number of insurance agents is expected to grow by 8%.

While AI undeniably enhances efficiency and optimizes processes within the insurance sector, the essence of the insurance agent's role is, and will remain, inherently human.

Agents Are Here to Stay

Agents remain relevant to both insurance companies and to consumers. They make a huge difference for both sides: Agents help clients choose the plans that fit their needs. Agents are aware of more products than consumers are.

First, let's look at the most common reasons new agents fail in the first year: Inadequate training - Many IMOs will give a new agent a crash course in selling insurance. They do not work to understand the agent as an individual in order to know the strengths and weaknesses of the agent.

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.

The state has been particularly battered by the dual forces of nature and economics — wildfires fueled by drought and, more recently, flooding have led to significant losses for insurers, prompting many to exit the market or drastically adjust their offerings. For Harper, the job's emotional toll is palpable.

Each insurance licensing exam presents its own challenge. Between Life and Health, students say that the Health insurance exam is the more difficult. Health insurance policies are simply more complicated than life insurance policies. The Property insurance exam is easier than the Casualty insurance exam.

If you have a great work ethic and are willing to place yourself out there to establish relationships with clients, you will get more opportunities to earn a higher income. Selling insurance may even make you a millionaire.

Misrepresenting what's in your policy: Agents should be well-versed in the policies they sell. An agent makes a material misrepresentation when they lead you to believe you're covered for something not included in the policy.

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.

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.

Annual income for a life insurance agent can vary from as little as $28,000 per year to as much as $125,000 per year. How much money you can make selling life insurance will depend on a variety of factors, including your own ability to convert leads to customers, as well as the area in which you live.

Insurance Agents are often expected to be available around the clock to meet client demands, which can lead to unpredictable work hours. The pressure to be constantly accessible for client inquiries, claims, and emergencies can encroach upon personal time, making it challenging to disconnect and recharge.