New insurance agents find the job is harder than expected

In the United States, industry association LIMRA has teamed up with sales platform provider, Vymo, to identify factors that will bring Millennial and Gen Z employees to work in the insurance space.

They say traditional perks like job security and financial opportunities are still important to employees, but these have been overshadowed by a significant shift in aspirations – job security is still valued, but for younger generations, this is coupled today with a desire to be influencers in their field, the report states.

Purpose-driven work 

They add that technology will play an evolving role, simplifying seller activities. “The report provides a framework to reassess the sales tech stack to align with the needs of the modern workforce – not just as tools to improve efficiency, but also as a means for empowerment,” they write. “The new age sales tech stack equips agents to accomplish purpose-driven work, reinforcing their role as trusted advisors in their client’s lives.” 

Entitled The Bridge: A report on understanding & retaining the Millennial and Gen Z insurance workforce, the report primarily looks at the challenges associated with retaining insurance agents today, the obstacles ahead and technological developments and preferences. It also includes a number of agent profiles.

Lack of financial stability 

The reasons agents leave the insurance industry include a lack of financial stability: The primary reason for departure is often not earning enough money, the report states. Unmet expectations, in particular the loss of any sense of mission or purpose, or initial expectations that are not met, often leads to disappointment, they add. Finally, running out of prospects was identified as a barrier.

“Directly linked to lower retention rates. It leads to boredom and failure due to a lack of a steady stream of new prospects,” they state.

“Another reason is that the job turned out to be much harder than expected. Agents were perhaps oversold on the opportunity with too much emphasis on freedom and flexibility, and not enough on the hard work and dedication required. They come into the industry under certain pretenses which, when unmet, can lead to disappointment,” the report continues. “New agents typically have a pool of social contacts in the form of current clients, family and friends when they join the industry. But what happens when they exhaust those resources? This issue is closely tied to retention rates.” 

LIMRA says retaining agents remains a significant challenge for companies – the industry’s four-year survival rate for new agents is just 15 per cent, according to that associations’ research.

Team-based approach 

To solve this problem, among a number of key findings, the report recommends a team-based approach, calling it the model of the future. 

“Teaming is poised to become a cornerstone of our industry. Representatives will be grouped into cohesive units, with each member excelling in a specific role,” they report. “This model, integrating specialized roles within a team framework, supplemented by a robust digital presence and a client contact centre offering virtual assistance, represents the future of insurance sales.”