Life Insurance Agents and Brokers

The U.S. Department of Labor predicts that employment for insurance agents and brokers will grow faster than the average for all careers through 2033. The percentage of citizens older than 65 is growing at a much faster rate than that of the general population. Agents will be needed to meet the special needs of this group, converting some insurance policies from a death benefit to retirement income. Also, the 25-to-54 age group is growing. This is the age group that has the greatest need for insurance, and agents will be needed to provide them with services. In addition, more women in the workplace will increase insurance sales. Finally, employment opportunities for life insurance agents will be aided by the general increase in the nation's population, the heavy turnover among new agents, and the openings created by agents retiring or leaving the field. Employment growth should be best for independent sales agents because insurance companies are hiring more contract employees in order to reduce costs.

The most successful agents are those who speak a foreign language, those who have strong sales and customer-service skills, those who use the Internet (including social media) to market their services, and those who pursue continuing and advanced education.

A number of factors may limit job growth in this field. For example, some life insurance business has been taken over by multiline insurance agents who handle every type of insurance, thus reducing the need for those specializing in selling life insurance. Department stores and other businesses outside the traditional insurance industry have begun to offer insurance. Also, customer service representatives are increasingly assuming some sales functions, such as expanding accounts and occasionally generating new accounts. Many companies are diversifying their marketing efforts to include some direct mail and telephone sales. Increased use of computers will lessen the workload of agents by creating a database for tailor-made policies. Rising productivity among existing agents also will hold down new job openings. In addition, the life insurance industry has come under increasing competition from financial institutions that offer retirement investment plans such as mutual funds.