Employment of insurance sales agents is projected to grow 9 percent from 2014 to 2024, faster than the average for all occupations.
Because the profitability of insurance companies depends on a steady stream of new customers, the demand for insurance sales agents is expected to continue. Employment growth will likely be strongest for independent sales agents as insurance companies rely more on brokerages and less on captive agents as a way to control costs.
Many clients do their own Internet research and purchase insurance online. This practice somewhat reduces demand for insurance sales agents, because many purchases can then be made without their services. However, agents are still needed to interact with clients to help them understand their options and choose a policy that is right for them. Many people lack the time or expertise to study the different types of insurance to decide what they need. These clients will continue to rely on the advice from insurance sales agents.
Employment growth should be stronger for agents selling health and long-term care insurance. As the population ages over the next decade, demand will likely increase for packages that cover long-term care. The number of individuals who have access to health insurance will increase because of federal health insurance reform. Insurance companies will rely on sales agents to enroll people from this new customer base.
Job Prospects
College graduates who have sales ability, excellent customer-service skills, and expertise in a range of insurance and financial services products are likely to have the best prospects. Multilingual agents may have an advantage, because they can serve a wider customer base. In addition, insurance terminology is often technical, so agents who have a firm understanding of the relevant technical and legal terms also should be desirable to employers.
Many beginning agents fail to earn enough from commissions to meet their income goals. These agents eventually transfer to other careers. Many job openings are likely to result from the need to replace agents who leave the occupation or retire.
Agents may face some competition from traditional securities brokers and bankers who also sell insurance policies. Insurance sales agents will need to expand the products and services they offer as consolidation increases among insurance companies, banks, and brokerage firms and as demand increases from clients for more comprehensive financial planning.
Insurance Sales Agents
Percent change in employment, projected 2014-24
Insurance sales agents
9%
Sales representatives, services
7%
Total, all occupations
7%
Note: All Occupations includes all occupations in the U.S. Economy. Source: U.S. Bureau of Labor Statistics, Employment Projections program