The Portrait of Insurance Producers in the US
Insurance producers in the US earn an average yearly income of $120,000, according to this infographic on subrisk.com. This article is based on the infographic about the portrait of insurance producers in the US. Here are a few facts that the infographic points out.
Independent vs. captive agents
The data shows that most of the insurance producers in the US are independent. 72% of agents are independent while only 17% are captive and 11% con-captive career agents. This could be attributed to the huge change in the market of insurance when laws and regulations changed. Due to this change, many independent agencies and aggregators started to pop up to take advantage of the situation. Independent agents get a lot of autonomy and freedom in the way they sell insurance.
Work, work, work
43% of insurance producers claimed they work a standard 40 hours a week. This is about 6 hours more than the average. According to the balance careers, Americans work an average of 34.4 hours per week. Insurance producers usually are workaholics in nature. This may be because most insurance producers have ownership in their firm for which they dedicate more hours than the average.
Regarding the ownership insurance producers in the US have in the firms they work in, 47% have exclusive ownership. This means that they own their own agency. While 40% have majority ownership in their firm. Setting up an agency for a producer is easy as long as they have ties to insurance companies to quote with. Insurance agents who own their own agency usually work on their own, single-handedly. The survey also found that 41% of agents have a brick & mortar office that they don’t share with other producers, and 35% stated the work from their residential office.
The data shows that 49% of insurance producers have a license to sell insurance. On the other hand, 51% of insurance producers have a dual license in insurance and investments. Insurance producers quite often fulfill the responsibility of financial advisor as well with the use of a dual license. Insurance clients often require financial advice and planning for themselves, so a dual license serves a great purpose for insurance producers in the US.
Most producers (46%) primarily serve the middle market which includes clients with less than $1 million in investable assets. However, the other producers target the mass affluent market (41%). 7% of producers target clients with a high net worth or low income. No matter who your target is, the insurance market is vast. Most producers pick a niche when selling insurance to ease their work and maximize profits.
If you’re an insurance producer, how much of this data applies to you? Do you also fall under the majority? Leave us a comment.