What are your thoughts on the insurance industry

[biggboy55]

I am new to this forum, and to the insurance industry.. I'm young half way through college and studying for my 2-20 exam. I like the idea of the insurance business mainly because everyone needs it and the income potential is there, and i love sales jobs but then again I know agents who dont make a dime, and then there is my aunt who make a cool million a year with state farm.
If you have industry experience then please give me your thoughts on the industry as a whole, and if you specialize in a particular field what are some great aspects of that field, and the bad.
I really want to take on this career if been thinking about it for a long time so opinions are truely needed.

[Big Dog]

If you're looking at working in the insurance industry - especially as an insurance agent/broker - with the sole goal JUST to make money - you're approaching it from the wrong angle. Insurance - be it personal lines or commercial lines - is complex. Approaching someone, or a business, just to "sell them insurance" without fully understanding what they really need - is a recipe for disaster.

My personal advice to anyone is. do something else if you possibily can. The insurance industry in and of itself, is not a healthy working environment. After spending some 20+ years on both the insurance agency/brokerage (as a commercial account manager) and on the company side (as a commercial underwriter), I took my skills/knowledge and now work on the "client side" in a risk managemebnt position.

[lonestar]

bigboy, my experience as a captive agent for over 10 years, and now as an independent agent for going on 2 years:
The days of the scratch start up State Farm agent making a million dollars per year are gone.(with very few exceptions.) Many reasons for this, but it boils down to much different company philosophy towards the agent today from the company view, versus the "Good Old Days" 20 or 30 years ago when it was the "Cat's Meow" to be a State Farm agent. I am sure your aunt started many years ago, and is on a contract with SF that has not been offered to agents in several years. State Farm has changed their agent contract 3 times since 1997, with each contract change being less and less agent friendly each time. Also, customers are much more savvy these days, and smarter. What does this mean to an insurance agent? No longer can you as an agent offer "one brand of detergent" and prosper, starting from the ground up. Again, very few exceptions to this statement. All captive agents, not just State Farm, are singing the blues these days. (Allstate and Farmers for sure) Since your aunt probably rode the wave to growth many years ago, she can sit back and enjoy her renewals as long as State Farm does not get greedy and terminate her contract, which they can do since they own the policies. Allstate and Farmers can do the same thing. (Farmers is incented to "steal agencies" from their agents, because they can assign them to new agents and pay the new agents 4% commission on auto instead of the original agent's commission of 10%.) On the independent side, the agent actually "owns" the policies. If you really want to get into the business to learn it for a career, I would suggest contacting a local independent agent(IA) who is looking to bring on a producer, and work out a business arrangement that is to your liking. With several companies to represent as an IA, your closing ratio for every 10 policies you quote will be in the 60-70% range, versus 10-20% on the captive side.

[LadyBroker]

why not go to work with your Aunt for a while and learn the business. If you like it, when you graduate college, then make it your career.

[d's insurance store]

The key question for anyone thinking that the road to riches is paved with personal lines insurance policies is to ask 'what can I do differently than anyone else selling the same thing?'

The days of getting a license, renting an office, obtaining a few key appointments and taking out a half page ad in the Yellow Pages touting 'SAFE-STRONG-SECURE-LOW RATES-FRIENDLY SERVICE' are long dead. Jeepers, you can now buy personal lines coverage with a smart phone in bed at 3am!

If your aunt is really netting a 'cool million' with State Farm, I'd be pulling all the family strings I could to work with her and figure out how she's doing that. Unlock that secret and you'll be set for life.

[neilamcotts]

Policy holders buy insurance to transfer the risk onto another entity - so, you pay a flat fee that is roughly the average of what everyone's losses amount to, and in return your risk is absorbed and, if you obtain a loss, it is covered by the insurer. The insurers have risk, too - like large natural disasters, or some other unforeseeable amount of loss.

[johnsharp]

Before you go captive or IA you need to know what niche area you want to be in.

Going Captive you'll learn more than IA. But, Captive you'll have less of an niche to work with. IA's have a variety of specific markets to reach to become an expert in that line and grow an impressive agency. Getting appointments as an IA with no background in the industry will be a little tougher than Captive.

You can visit my website (http://agencyupdates.com) to learn a little about marketing an insurance agency and creating a niche brand.

[rijbadgett]

I have tried being an insurance agent before and I really liked it. If you just know how to talk to people then you don't have anything to worry about.

[stuartkarim]

Being an Insurance agent is really hard. Goodluck.

[jackwehoca]

To rijbadgett
Hopefully you were just trying to inject some humor into the discussion. You tried it and you liked it? All you have to do is know how to talk to people?
I would think that knowing the type of insurance that is appropriate and the perils the prospect might be facing are a little bit more important than knowing how to talk. You say you tried and liked it-are you still in the industry? Are you making any money or just liking it?
This is a profession that is responsible for the economic well being of millions of Americans and you say all you have to do is know how to talk to people? Agents have majored in this career field while at college, have attended seminars and higher learning programs, have gotten certified to be able to offer various products, etc. and you think the gift of gab will see you through? I pity the people who have purchased insurance of any kind through your efforts.
As I said, hopefully you were just injecting humor-you certainly caught my attention! If you were serious, I am very concerned as to how this reflects on my selected profession.

[GerryZ]

When compared to many other industries, Insurance can be very rewarding, stable, interesting, and important.
Having spent my post college years in the insurance field (40 yrs.) I can say that today is one of the best times for young people to enter the insurance field. Yes, it's difficult (if done professionally) but would you want a career any other way?
If you are outgoing, studius, concerned for the welfare of others, and energetic this might just be your perfect field.
As for sales, you can get by or you can be tremendously rewarded as a "motivated self starter". It's up to you!
I believe for the educated insurance professional (and studying never stops in insurance) one who cares about others, insurance sales is simply making friends. I prefer the "independent agent" route as it gives more individual freedom and product choices. Being an IA also means more time invested in learning about multiple companies and their products.
I am currently working on a "recruiting piece" to sell to Independent Agents and Associations that should attract the attention of young people who have never considered insurance as a career. Unfortunately, our industry has done a bad job of promoting the virtues of insurance careers. With a multitude of interesting positions, important work where no two days are alike, job stability despite local and national economic ups and downs, great upward mobility, professionalism and the respect that comes from helping others in times of need - Insurance can be a great career!.