How many types of insurance agents are there?
There are two main types of insurance agents: captive agents and independent agents.
There are 927,600 licensed agencies and brokers working in the US. 2023 totals show 902,500 life and health insurance agents and 686,300 property/casualty insurance agents. On average, 57.9% of first-time insurance exam takers pass the test. Insurance agents make on average $51,936 per year.
An insurance agent represents one or more insurance companies and sells their policies for a commission. They can either work full-time at insurance sales for an agency, or as independent contractors.
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.
Captive agents sell insurance for one specific company. The one and only insurance company that they represent is typically a “name brand” company. You might even see their commercials during the Super Bowl. Independent agents, on the other hand, sell insurance for several different companies.
That is a 90% failure rate for new agents.
Most independent marketing organizations will train insurance agents on all the products they want them to sell. Then the independent marketing organization will train the insurance agent to ask a few questions and learn a sales presentation that just sells a product.
Based on 2023 brokerage revenues from U.S. clients, the largest insurance broker in the United States is Marsh & McLennan Cos Inc.
One of the biggest reasons that insurance agents quit is the fact that they have unrealistic expectations. The insurance industry is huge, which leads many people to think they can easily make a large income by selling insurance.
- Types of insurance. Auto. Home. Life. Long-term care. Annuities. Business. Boat/marine. Credit insurance. Crop. Dental. Natural disasters. Pet insurance. Sharing economy. Surplus line insurance. Travel. Extended warranties & service contracts.
- Guidance on Change Healthcare cyberattack.
- Podcast: OIC Answers.
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.
Which insurance job is best?
- Actuary: An insurance actuary evaluates financial risks to establish the proper premium for insurance policies. ...
- Salary: The annual salary of an actuary can go up to INR 12.4 LPA.
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.
An agent who is only out to earn a commission, regardless of the needs of the client, is not likely to last long in the business. 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.
Although there are many insurance policy types, some of the most common are life, health, homeowners, and auto. The right type of insurance for you will depend on your goals and financial situation. Consumer Financial Protection Bureau.
What is an agent code? An agent code is a unique identifier that allows agents to conduct business and sell insurance products on behalf of an insurance company.
What Does General Agent Mean? General agents are insurance agents who sell insurance products to other insurance agents or brokers. The other insurance agents and brokers then sell these products to the people or companies who will be using the insurance.
Most professionals who sell insurance are paid largely on a commission basis. In fact, most agents aren't even employees of the carrier. More often than not, they're independent contractors who are compensated based on how much they sell, with higher commissions for certain types of products.
It is not easy to make a living in insurance, but it is not as hard as you might think. As with any type of sales, becoming an insurance agent can be one of the best paying hard jobs or a terrible paying easy job. Dedicated agents will become successful at insurance sales, just like at any other job.
The burnout rate for life insurance sales agents is high. More than 90% of new agents quit the business within the first year. The rate increases to greater than 95% when extended to five years.
How much do the top insurance agents make?
| Annual Salary | Monthly Pay | |
|---|---|---|
| Top Earners | $98,197 | $8,183 |
| 75th Percentile | $76,000 | $6,333 |
| Average | $59,733 | $4,977 |
| 25th Percentile | $43,900 | $3,658 |
Most insurance sales agents work in offices, although some may spend much of their time traveling to meet with clients. Most insurance sales agents work in office settings, although they may spend time traveling to meet with clients.
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.
Unpredictable Income
While the insurance industry is stable and the income is lucrative, it can sometimes be hard to plan ahead and know where your next paycheck will come from, since your income may be solely based on sales made. To succeed in this field, you must be a go-getter.
Working with the right carrier is key to an insurance agent's road to success. An established insurance company will allow the agent to sell a variety of products, earn commissions and provide options for personal and career growth.
