It’s amazing to see how few life insurance sales agents dominate the life insurance marketing market share. Half of all life insurance agents control the market and make a minimum $100,000 in income. Here are my findings about which life-selling marketing pros are in this income group.
There are three main categories of life insurance agents. They compete to capture as much life insurance market share together as possible. Learn how one group is able to dominate life insurance sales.
GROUP ONE This is the largest group of life insurance agents. They are represented by over 900,000. They can be divided into two categories. This is the first category, which includes agents who are newer and have been licensed for less than 4 years. The second category includes all levels of experience. These agents are overly specialized and sell multiple products. These are the same agents that you know from Allstate, Nationwide and S.F. Nationwide.
GROUP TWO This is the smallest group of licensed life agents. Their total base would be around 120,000. The wirehouse stockbrokers would make up the largest percentage. The financial institutions and home office sales teams follow.
GROUP THREE This group consists of nearly 480,000 professional agents. Although they are able to write an enormous amount of health and annuities, we will only be focusing on the life insurance market share. This group is slightly smaller than the rest of the licensed life agents. Formally, they are known as semi-independent agents or independent brokers.
WHAT IS THE MARKET SHARE CHANGING? Despite the rapid advancements in financial planning and new products, one group’s market share has been declining. This happens yearly, even though the agent base has been growing annually. Group One agents now account for less than 24% of all sales. Group Two agents are still relatively consistent with their 8% share. The third group holds the 68% lion’s share. Each year, sales increase among them. It’s amazing that 32% of total agents can write 68%.
UNDER THE NUMBERS MICROSCOPE I was intrigued to learn more about the relational meaning of the numbers by mathematically calculating them. To equal the performance of one experienced Group Three pro, how many agents would need to be recruited from Group One agents? I was able to answer the question using the figures of 1.875×2.833. The answer was 5.3 agents. This means that 5 agents from the first group were equivalent to 1 agent from the second group. Group 2 agents weren’t considered because they shouldn’t be.
FURTHER NUMBER CRUNCING Let’s take a closer look at semi-independent brokers and agents. You can subdivide this group. This group is called the “responders”. They respond faster to life insurance product contracting opportunities and have more experience. This group comprises 40% of the total for group three. It was found that 40% of the group three life cases were written by producers.
SALES AGENTS ARE ABLE TO EARN $100,000 INCOME Additional calculations reveal that an average producer from this elite group can be worth 8.48 salespeople compared to the group one agents. It is clear that more than half of all life insurance marketing shares are produced by 10% of the agents. Nearly all of these producers earn a yearly income in excess of $100,000.
WHAT CAN YOU GET FROM THIS ARTICLE? You can if you’re an insurance broker to licensed agents, or a company recruiter. It’s very easy. No matter what agent you mail, postage and printing costs are the same. It is worth spending the money to obtain a list with the top “responder” agents. You want agents who control the life insurance market. To dominate the life insurance market, you need to know what agents are selling it.