This post is part of a series sponsored by AgentSync.
New to insurance? Here are three reasons why you should stay the course
Ask any insurance industry veteran and they̵7;ll tell you it’s a career worth having. Whether they own an independent agency, work as a producer for a major brokerage firm, manage and service accounts, process claims, or any of the dozens of career paths in the insurance industry, most agree that this tight field is a good professional “home” for them that lands in it.
Of course, like any field, there will be ups and downs. It can be discouraging at first to feel like a small fish in a big pond not getting its fair share of algae flakes. Let’s just assume for a minute that you actually want algae flakes. You are a fish – just go with it.
Despite its excellent reputation with long-term employees, the insurance industry is notorious for having a high turnover rate. As many as 30 percent of new producers quit within a few months, and a whopping 83 percent of producers quit within three years, according to a 2019 Property Casualty 360 article. And those stats are from pre-pandemic times! We can only imagine how high the turnover will be in 2021 with the “Great Departure” in full swing.
Why does insurance have such a high turnover?
If it is such a good industry to work in, why is the turnover so high? The primary documented causes include:
- Inadequate onboarding
- Lack of diversity in the workforce
- Slow technology adoption
Together, they boil down to a less than stellar staff experience, especially for young, new or inexperienced producers.
If you are in fact a young, new or inexperienced producer, don’t run to hand in your resignation just yet! Each of these factors can be addressed by an insurance agency if they really make fixing them a priority. The good news is that many agencies are doing just that!
What makes insurance a good career?
People with lifelong careers in insurance rave about it while new agents and producers quickly flee. So where is the disconnect? Much of the answer comes with time and experience, but it’s time and experience that the next generation of insurance industry professionals rarely see.
New producers can be lured into the industry with promises of flexible hours and unlimited earning potential, but soon realize that there is a steep learning curve to becoming a licensed agent and many rejections along the way to a successful book of business.
Realistically then, why should you stay the course and invest in a long-term insurance career? Here are the top three reasons why we think it’s worth the effort.
Insurance is really about helping people
Insurance is an industry that most people love to hate. Most of us have had at least one experience where we didn’t get a claim paid out exactly as we would have liked, or as quickly as we would have liked.
While it is true that there is a great potential for error, the fact is that the industry is highly regulated to protect consumers. There are over a dozen reasons why a producer can lose their insurance license and basically be shut out of the business. And most of them involve unethical acts such as lying, distorting or omitting facts during the sale of insurance.
Thanks to the strict regulations and high demands placed on many producers who act in trust for their clients, most insurance professionals are truly helping people and have something to feel good about at the end of the day. After all, what could feel better than knowing that your client will be okay if disaster strikes because you sold them a solid policy? Or be there with your client in their worst times with the ability to help them recover?
The insurance is recession-proof
There are only a few things that are certain in this world. Death, taxes and, as it turns out, insurance! The modern world runs on insurance and no person or company can get along in society without at least a couple of insurances.
That’s why you’ll often hear the insurance industry referred to as “recession proof.” It’s not that it never has its own ups and downs, for example, hardening and softening insurance markets can make it easier or harder for those in the industry as well as for consumers. But all in all, while luxury cars may go out of style during deep economic downturns, and cruises may suffer enormously during a global pandemic, the insurance industry is so integrated into the world’s day-to-day operations that it just can’t stop screwing up.
The industry’s stability makes it an attractive option, and one of the key points industry vets point to when recommending it as a career. Still, it can be difficult for new and/or young people entering the field to appreciate the long-term perspective when there are still challenges in their everyday lives.
Which brings us to…
The insurance industry is catching up with modern technology
The age of insurance technology, or insurtech, is upon us. In recent years, the growth of software and technology specifically built to serve the insurance industry has seen astronomical growth with no signs of slowing down. By 2021, investment in, and growth in, insurance technology has hit an all-time high of $2.55 billion in the first quarter alone.
The rate of growth is furious, but much needed. For decades, the insurance industry lagged behind others in terms of technological advancements and automation. This is great news for a younger generation of insurance professionals who are digital natives and expect to work in technological environments.
Finally, insurance companies and agencies alike are addressing their talent crisis by modernizing the employee experience. With millennials fully infiltrating the workforce (remember, the youngest are already 25 years old!) the industry has unprecedented demand from its potential workforce to step up its technology game.
And a modern experience is important. Not only for the new producers to learn how to sell, but equally – or perhaps even more so – during the process of recruiting and onboarding the next generation of talent.
If you’re an agency owner or in a leadership role, we hope you’re noticing a trend. The insurance industry has been an exceptional place to call home for generations, but there is much work to be done to keep that legacy alive.
And if you’re a young professional just starting out in the industry, or even just considering it, we hope you see the promise and potential for it to serve you well in your future career, even if you still feel like the little fish in a very large pond. The agencies of the future are actively working to create an exceptional experience, offer onboarding and training opportunities to help you succeed, and invest in technology that makes your job easier.
You may still be a small fish, but we know you’ll get that algae if you just keep swimming! Learn how AgentSync can help you scale your team.