Starting a career in insurance: "The key is mentorship"

The importance of mentorship at the start of a career, the qualities needed to thrive in insurance, commission sharing, and the impacts of artificial intelligence (AI) on the industry – these were some of the critical topics discussed and debated during the opening session of the 27th Congrès de l’assurance de personnes, held on Nov. 13 at the Palais des congrès in Montreal. Moderator Serge Therrien, president and publisher of Insurance Journal Publishing Group, gave the floor to four young leaders in the industry, inviting them to share their perspectives and advice for navigating this sector, which is in a state of transformation. 

Alarming trends 

To kick off the discussion, Therrien highlighted some troubling statistics: between 2010 and 2023, 100,000 fewer insurance policies were sold in Canada. The penetration rate of insurance sales per 1,000 residents dropped from 21.7 in 2010 to 16.9 in 2023. 

Several factors are contributing to this decline. 
“There’s a lack of new recruits, a labour shortage, talent quality issues, challenges with entering the profession, as well as an aging salesforce,” Therrien explained. 

While the current situation may appear favourable for newcomers to the individual insurance industry, the reality is much more complex. Starting out can be grueling, and many give up after a few years, either leaving the sector altogether, or joining financial institutions. 

Qualities needed for success in individual insurance 

So, what qualities must a young professional possess or develop to succeed in the insurance industry? 

“It takes perseverance, passion, and consistency above all else,” says Jade Cantin, president of the Réseau des jeunes courtiers du Québec and an insurance representative at Cantin Cabinet Conseils. “If you give up after a year or two, it’s no surprise that things don’t work out.” 

“Most people entering this field have never worked in financial services and don’t know what they’re doing here,” believes Patrice Therriault, president, financial security advisor, and best practices specialist at Patrice Therriault Solutions. “They start out thinking, ‘I’ll give it a try and see where it takes me.’ It’s hard to persevere and push through barriers. But our job is precisely that – breaking through barriers. How can you stay resilient if you don’t know why you’re doing it, don’t have a vision, or don’t have a plan?” 

Therriault contends that success in the industry often comes down to good fortune at the start. 
“If you enter this field without a coach, colleagues, or friends to show you the ropes, you’re heading straight into a wall,” he says. “But if you’re lucky enough to start with a good manager or mentor, everything becomes much easier. Your progress is smoother right from the beginning.” 

Generating value above all else 

“Why do we get up in the morning? To make money? That’s not a good enough reason,” says Patrick-Olivier Duchesne Lachance, president of Oïkos Services Financiers. “ The day you hit a wall and lose your resilience, you’ll give up and leave the industry. Many advisors abandon ship and move to credit unions or banks for job security. To stay in our field, you need a vision: you’re here to help people improve their circumstances. Our work is incredibly important,” he adds. 

Cantin acknowledges that starting out can be challenging. 
“For newcomers, understanding how managing general agencies work, or the bonuses and commissions for each insurer, is so complex that it takes years to learn and absorb. You need to get lucky to land in the right place and receive the support you need,” she says. 

Mentorship: The key to success 

For Audrey Hébert, a talent acquisition advisor at Courtage CRH, mentorship is essential. 
“The key is mentorship – pairing an experienced advisor with a young recruit to transfer knowledge,” she says. 

“It’s also important to surround yourself with people who can compensate for your weaknesses and help you build expertise in areas where you’re less comfortable. Meanwhile, the junior can help the experienced advisor stay up to date on compliance matters. It’s a win-win to have an experienced advisor and a junior working together, and it often leads to better retention,” she adds. 

Finding the right coach 

But how do you find the right mentor? 
“When you’re starting in the industry, you can’t afford to pay for a coach,” notes Cantin. “Spending $3,000 or $4,000 on coaching is only feasible after five, six, or seven years in the business when you can afford it. At the start, you simply don’t have the means...As Audrey suggests, pairing people as soon as they finish their training would help integrate them into the profession. I think it’s the key to success.” 

Hébert shared her experience of being paired with her sales director, who worked hard to find compatible matches – like forming a couple. 
“It leads to better retention and is a great way to reassure young professionals,” she says. 

Breaking the culture of secrecy 

Therriault laments a pervasive culture in the insurance industry where people are reluctant to share their experience and insights with colleagues. 
“What I hate about this field,” he says, “is that no one talks to each other. Everyone does their own thing and keeps their secrets and strategies to themselves. So, we end up wasting 30 to 40 per cent of our energy. What bothers me is putting effort into developing a tool, only to discover years later that it already exists!” 

The importance of career networks 

Duchesne Lachance, who specializes as a broker for entrepreneurs in the construction industry, credits the career network program for helping him launch his brokerage career. 
“If I hadn’t gone through the career network, I don’t think I’d still be in insurance because starting out as an entrepreneur in brokerage is so complex. It’s vast, and it’s easy to get lost – to become a jack-of-all-trades but master of none,” he says. 

“Having worked with a good coach and sales director in a structured organization helped me better structure my own brokerage and career. Personally, I think the career network program is the best training ground for launching a career,” he adds. 

However, he points out a recurring issue with some mentors. 
“A mentor always has a hand in the contract. Emotionally, we’re attached to our clients, and it’s hard to hand them over to a junior. Some say, ‘I hired a junior, but they’re not selling.’ Well, have you given them clients? There’s a balance to be found.” 

Building a client base as a newcomer 

A member of the audience, a probationary intern for two months, shared how fortunate they felt to have two excellent mentors. However, they wanted advice on accelerating their sales. 

Hébert recounted purchasing her first book of business from a 65-year-old broker, whose clients were also over 65. She reached out to the beneficiaries of those life insurance policies, successfully expanding her clientele. 

Cantin, on the other hand, had no interest in buying a book of business or cold-calling. She preferred networking events to meet potential clients and build relationships. 
“What works,” she advised the newcomer, “is getting to know yourself – your strengths and passions – and building your target clientele accordingly. With 70 per cent of Canadian families not served by an advisor, there’s room.” 

“You’re an intern. You can’t move as fast as you’d like and won’t be signing major critical illness policies right away,” Therriault cautioned. “Start by learning your products. Be humble and recognize that you’re still learning. During my internship, I used the time to understand the industry and meet people. Once you’re licensed, you can call them back and say, ‘Can I meet with you and my manager? I’d like to see if I can help.’ It’s a different approach, and business flows more easily.” 

The issue of commission sharing 

Therrien brought up the contentious issue of commission sharing. 

In Duchesne Lachance’s experience, while partnerships can look great on paper, they often don’t work out in practice. “It’s a great idea, but how do you make it work? Greed can be hard to manage,” he says. 

“What’s challenging in a partnership,” Therriault adds, “is creating a fair and logical agreement. What’s the split? Who keeps the file? Who owns the client? Some deals make no sense – like keeping 70 per cent of the commission just for providing a lead. We see horror stories in our industry. It’s tough to make fair agreements, track commissions, and find a formula that works.” 

At Hébert’s brokerage, a different system was developed. Instead of splitting commissions, they offer comfortable bonuses to both parties. 
“This way, I don’t have to worry about it later, and it allows for great relationships,” she says. Having experienced both systems, she prefers the bonus-sharing model, as it minimizes conflicts. 

AI and ChatGPT 

AI is making its way into the insurance sector, if it hasn’t already. For Duchesne Lachance, this represents a major opportunity. He believes much of the administrative burden will be automated in the next three to five years. 
“Finding skilled employees is becoming harder. Technology may dehumanize certain tasks, but it will greatly improve our operations. Do we need to pay someone $40,000, $50,000, or $60,000 to enter data into an Excel file or respond to premium inquiries by email, when automation could handle this? It’s a valid question.” 

“ChatGPT poses a threat. You can talk to the app, describe your needs, and it will suggest an insurance product,” he adds. 

“As advisors, we need to reinvent ourselves and add value,” he says. “What can I do differently from others? Personally, I’ve turned to reading. Over the past two years, I’ve read 40 books on personal development, finance, and entrepreneurship. When I meet with a client, I have the knowledge and vocabulary. It’s up to me to train myself and lead the way in this industry,” he adds. 

Cantin shares a similar perspective. “It’s up to us to stand out with a human approach while learning to work with AI as a tool to enhance how we operate,” she says. “We need to start adapting now, taking training and learning how to use AI so we don’t get left behind,” she concludes.