Like any working American, insurance agents often worry about the future of their job and their industry. Economic upheavals, rapidly developing technology, and other factors often make it hard to predict what the future will look like. As far as the insurance industry is concerned, however, there’s no reason for most insurance agents to start regretting spending all that time taking exams studying to become an insurance agent. According to projected economic data, the demand for insurance agents will not only stay steady, through 2022, it will grow.
Projected Growth through 2022
To get right to the point, the job outlook for people working in the insurance industry is good. According to the Bureau of Labor Statistics, the insurance industry is projected to grow 10% by 2022 from where it was in 2012. Breaking the numbers down further:
- Total insurance sales agent jobs are projected to grow by 11%
- Total jobs for related occupations are projected to grow by 7%
While these numbers are dependent on the projected growth of the economy as a whole, the BLS report also makes sure to note that demand for insurance is due to rise, which will inevitably lead to higher demand for more insurance agents. In particular, it notes that the number of independent insurance agent jobs is likely to grow the most, as companies turn to brokerages, and to allowing customers to search for and purchase insurance online as a cost-controlling measure.
On the subject of online insurance sales, which many insurance agents feel could lead to them being pushed out of the industry, the BLS report also notes that while the number of online sales through larger insurance companies is likely to increase, this will not lead to insurance agents becoming obsolete. Insurance agents will still be needed to interact with customers and provide a human face after the purchase of insurance has been made, which means that while some insurance agents might find themselves less involved with the initial sales process, the demands of the industry will lead to their jobs being modified rather than eliminated entirely.
The amount of money that insurance agents earn on a yearly basis can differ greatly from agent to agent, depending on the amount of commissions they earn and other factors. According to the BLS:
- The median annual salary for an insurance agent was $48,210 in 2013
- That same year, the best-paid 10% of insurance agents earned more than $117,830
- The lowest-paid 10% earned less than $26,030
Taking the discrepancy in earnings into account, the BLS also states that while the overall number of insurance agents is likely to grow, there will also likely be a high turnover rate as bottom-paid insurance agents who are unable to earn enough commissions leave their positions in favor of other jobs. In addition to the overall growth creating more job openings for insurance agents, this high turnover rate will also result in many job opportunities being available.
What Skills Will Be Most in Demand?
According to the BLS, the following skills will be in particularly high demand in the insurance industry for applicants:
- A college degree
- Sales ability
- Bilingual or multi-lingual capabilities
- Experience in industrial and financial services
- A prior understanding of insurance industry terminology and regulations
or anyone who wants to take advantage of the continued health of the insurance industry and find a lucrative career as an insurance agent, learning the terminology and becoming licensed is the first step. Contact America’s Professor today at 800-870-3130 to sign up for our online pre-licensing courses today.
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