Insurance Brokerage Marketing Analysis – Worst States For Marketing Insurance

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This commentary focuses on the 19 states that are least likely to be marketed as insurance brokers. Insider fact revealed: This analysis shows that 17 of these 19 states rank among the top 25 in highest income. Learn why.

According to logic, the wealthiest states should have the highest money-making brokerage opportunities. This is not the case. This is due to the large number of career-based life insurance agencies that push new agents into financial planning. What number of agent trainees could be considered competent financial advisors? Few agents last long in their insurance careers. To make insurance brokerage marketing profitable, it is necessary to have enough independent agents and brokers.

DELAWARE, Rating =32

A very small number of agents are available, with approximately 3,000 life and health producers. The number of brokers interested in placing business can be further refined to around 1,100. It is often overlooked due to its small number of producers. You might be able to find a few good brokers if you get rid of the 2,000 people who are not worth your time.

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MASSACHUSETTS Rating =33

Massachusetts is a better choice than Virginia, New Jersey and Maryland when it comes to ranking. It is not a poor state. In fact, Massachusetts’ median income is $16,000 higher than Montana’s. It is also less likely to have a high turnover rate than in neighboring states. This means that more agents are able to reach the ideal 4-1/2-to 12-year age range. Many of the top annuity, life and health brokers come from this group. To increase your marketing success, stay out of the Boston metropolitan area. This state, as well as most New England states, is often not warmly received. Agents tend to shun brokerage marketing operations that are not located in the northeast or New England states. At 3.1 per 1,000, the ratio of agents to Mass residents has been very high. It is an excellent state for planning financial/estate and annuities. The household income is $8,000 higher than the national average. Outside marketers face a major problem with loyalty.

SOUTH DAKOTA Rating = 34

Here, there are a lot of life and health agents. Nearly half of the population resides in the Sioux Falls region. The outlying areas are home to multi-line one and two-man life, property and casualty shops, and a large number of them. This isn’t a lot of wealth, as the household income is $7,000 lower than the national average. Small life policies are the norm, and annuities are not widely promoted. The market for health insurance products is stronger.

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NEW HAMPSHIRE, Rating = 35

New Hampshire, a small Northeastern State, is surprisingly a strong financial state. The median family income in New Hampshire is more than $14,000 higher than the national average. This makes it attractive to recruit agents for financial products. Unfortunately, this is not enough to attract enough agents to hold a seminar. Agents may only broker with one or two companies in New Hampshire, but they are extremely conservative. The average broker will represent three or more carriers across the country. The New Hampshire brokers, who are currently brokering, will likely sign with only one carrier over the next twelve months. To ensure you are the carrier, it is important to choose the right list of agents that have proven themselves, offer the best opportunity, and mail at the right time. He is not sitting on the fence at the “right time”. Either the agent must add your product right now or he has had a carrier fail him.

CONNECTICUT Rating = 36

Are there more Connecticut lawyers? According to our data and census data, Connecticut has 40% more agents for every thousand residents than any other top brokerage state. Connecticut has a high wealth factor with many well-off communities. Many of the experienced agents have earned CLU, LUTCF and CLU credentials. The qualifications for your financial products must pass a list as large as a grocery store. They have to be qualified by “over-educated” agents who insist on reviewing and then cross-examining every product they are considering selling. It’s almost like an insurance lawyer reviewing the coverage. The prime middle ground, which is typically a producer with between 4 and 12 years of experience, is what is missing. This creates a negative situation. A small percentage of agents are not willing to be independent brokers or general agents. Agents in CT receive far fewer insurance recruitment calls or mailings that those in MA, MD or VA. This is the best factor for recruiting.

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VIRGINIA Ratings = 37

The life agents, another state with high income, are more likely to have started their career development process through a life career subsidy program. Although it would be nice to distinguish the professionals of 4-12 years from the novices in Virginia, this is difficult. You already know that sending the wrong agents will result in zero results. It is not a good idea to list thousands or even millions of unknown agents. Concentrate on the producer who might be able to benefit from your offer.

MARYLAND, Rating =38

There are many Washington D.C. agent opportunities. However, most successful producers reside in Virginia and Maryland. They are especially vulnerable to insurance solicitations from local associations. They also have the same loyalty factor to their careers as Massachusetts agents. There is great potential to market insurance brokerage products by introducing variable and annuity products.

WASHINGTON, Rating =39

Washington is ranked higher in state ratings than Washington, but only for one reason. What agents are available in the area of expertise you seek? This information will not be provided by the Washington Department of Insurance. They feel it is confidential. Agent data is kept secret. Our firm was not allowed to use a laptop computer by the insurance department in order to view records. Do not try to obtain a list of Washington agents from the yellow-page. This will only give you a large number of highly-captive Nationwide, S.F. and Farm Bureau agents. You can only find a reliable, refined, multi-source compiled listing from a respected firm.

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NEW JERSEY, Rating = 40

Surprisingly, this is the richest state. At least in certain areas. It has $13,000 more than the national average. The largest life agencies in major cities can have up to 300 agents. High turnover is a result of high numbers and high levels of career agents. This includes about 85% for the first 18 months. This state has the highest percentage of multi-line agents both independent and captive. Multi-line insurers have a lower turnover rate. There are many good general agents and brokers in the state, but it is important to know who they are.

NEW YORK, Rating = 41

This is a big state. New York is a state with its own regulations and rules. It’s not worth it for many companies to get licensed there. If they do, it often ends up in New York life insurance company. There are however some well-known life insurance companies that have career-oriented agencies. New York regulators believe that agents licensed in New York are not subject to the freedom of information act. A large team of lawyers is available to fight any idea you may have about invading their state to obtain information about agents. An estimate would put the number of licensed agents in life and health at 58,000. The problem here, like Washington’s, is obtaining a qualified broker list. Here’s a tip for smart marketers: New York insurance agents get less solicitation than their competitors in any large state, or state with half of the population.

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INDIANA Rating = 42

It is one of the most prolific states for agent turnover in the country. The agent per 1,000 residents is slightly higher than the norm. In fact, 8 years ago, the agent per 1000 people was nearly double. Life career agencies also shrank in New Mexico because they realized the potential for profit was low. There are many agents who have the experience but have not yet taken a significant step towards independence. You might find it relaxing to spend unlimited time, money, and patience “teaching an older dog a new trick”. Instead, focus your insurance brokerage marketing efforts on more lucrative areas.

ALASKA, Rating =43

Too few agents to support a decent population. There are far too many occupations that make more than the agents in the state. Only three states have a higher median household income. Most recruiters who have the state within their territory are based in Washington or California. A 1,000-piece mailing is impossible because there are not enough qualified brokers. Avoid sending out 1,000-piece mailings unless you absolutely need to.

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WYOMING Rating = 44

How do you market your products in a state with so many agents? Direct mail is the most common way to promote your products in a state with limited number of agents. It is best to not ignore Wyoming in your marketing. Instead, tie it in with Montana and Idaho and mail the best.

VERMONT, Rating =45

Vermont is the smallest state in the Union, making it difficult to assess. There is very little insurance brokerage marketing demand. It is difficult to rank Vermont in the overall rankings due to little information about the state. It was possible to draw comparisons between Vermont and other Northeast states after analysis. It lacks the brokerage mentality found in New Hampshire and Maine. The agents aren’t very open to the possibility of product selling. The life agency agencies have had enough success to keep the agents loyal to their old school thinking.

RHODE ISLAND Rating = 46

It is difficult to find Rhode Island agents who write which products. Because of this, it is difficult to find qualified agents in Rhode Island.

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COLORADO Rating = 47

Insurance banks take away the usual base of independent agents flow. So do aggressive mutli-line agencies like Nationwide, S.F., Allstate, etc. A bank can offer an agent something that a career agency cannot. This feature provides an unlimited supply of potential client leads with complete information about their assets. This is the same “lead” that a life agency often gives to an agent. This is a policy owner who has $1,000 to $25,000 in insurance. Five previous agents either failed to solicit the owner or took away the policy owner’s cash value to purchase a new policy. A majority of “wirehouse” securities agents have a life insurance license. In Arizona and Colorado, however, this number is closer to 90%. This is all topped by a lot of competition for recruiters. You can either get the right agent or you’ll be left out in the cold.

ARIZONA Rating = 48

It is too hot to handle but it is not because of the heat. This is a state that Insurance Brokerage Marketing companies consider easy. They send offers to all the agents in the state, not just a few. It is easy to waste money trying attract 12,000 state agents who will not do any good for you. There are thousands of Allstate and Liberty Mutual agents. And there is an unusually large number of rookie agents. It has the same problems as Colorado: too many untrained, starving rookies and too many old-timers stuck in the mud. Marketers who think Arizona is full of retirement havens need to think again. Its senior population is in line with the average state.

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NEVADA Rating = 49

You can bet 10 to 1 that professional gamblers make a decent living, more than the insurance agents who earn likewise. Every other insurance company with this state has a similar desire to gamble on hot producers and roll out large sums of money. There are few hot producers and there is little competition for agents. In a matter of minutes, the marketing competition could fill a dumpster with their ads. Five words: No agents, tons and tons of competition.

HAWAII, Rating =50

This is a state you can’t comment on. There are no other states that border Hawaii. Hawaii is also split with its many islands. It is a state that requires fewer brokers than the rest and it is better served by an insurance brokerage marketing company located in Hawaii.

Here are the top 31 states ranked in order. These are Florida, Texas, Georgia, Wisconsin and Minnesota. Next up are New Mexico and West Virginia, North Dakota. Montana, Maine. Louisiana. Pennsylvania. Montana. Iowa, Idaho.