Insurance sales agents | Data USA (2024)

FAQs

How many insurance sales agents are in the US? ›

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.

Dear Friends, Somewhere 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! That is a 90% failure rate for new agents.

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.

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.

#1 Low Motivation

To be a thriving insurance agent, you have to want to succeed. 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.

Insurance agents succeed when they prioritize their customers' needs over their own profits. 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.

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.

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.

How long does it take to be successful in insurance sales? ›

Most businesses don't make any profit in their first year of operating. It could take anywhere from 18 to 24 months for your insurance sales to actually provide profit. Don't feel discouraged. Every small business owner has to clear this hurdle.

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.

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.

1,236 crore to agents in FY 2021. Max Life and LIC are the highest commission paying life insurers in India as their commission outgo is in excess of 5.5% of their total premium income, shows LIC's draft IPO prospectus. Max Life pays the highest commission to agents.

In 2022, there were a total of 727 life insurance companies in the United States, down from 737 in the previous year. The number of life insurers peaked in 1990, with well over 2,100 life insurance companies in the United States that year.

Number of employees in the insurance industry in the U.S. 1960-2022. In 2022, there were approximately 2.9 million people employees in the insurance sector in the United States.

Insurance market size in the U.S. 2009-2022

In 2022, insurance premiums written in the United States amounted to 1.48 trillion U.S. dollars, which includes property/casualty premiums in addition to life/annuity premiums.

How many policies does an insurance agent sell? According to the financial reports, the Official Number is 2.5 policies per month.