It’s something we’ve known all along: a career in insurance is especially engaging and fulfilling. Now, new research from Indeed confirms it. In its report titled ‘Best Jobs for 2019,’ two insurance roles—Insurance Broker and Insurance Advisor—were listed among the top five “hottest” jobs.
The rankings by Indeed included many factors, including job areas that are experiencing the fastest growth and those offering the highest relative pay. So what are some of the other elements that make a career in insurance and financial services so attractive?
As with any burgeoning employment sector, the insurance industry is positioned to attract, and has plenty of room for, young talent; both GenX and Millennials.
According to the U.S. Bureau of Labor Statistics (BLS), job opportunities for insurance agents, including financial advisors, are projected to grow 10 percent through the year 2026, adding approximately 49,800 new positions during that time. This projected growth is faster than the average for all other occupations across the country.
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In a recent interview with National Public Radio (NPR), Pat Borowski of the National Association of Professional Insurance Agents reaffirmed the profession as a top destination for aspiring talent.
“The industry has a lot of open positions, and both agencies and companies are looking for people. We insure everybody for everything, all of the time, everywhere. That's a lot of business.”
A study by McKinsey & Company says up to “a quarter of current workers in the insurance industry are set to retire in the next few years.” This represents an opportunity for entering candidates, mid-career changers, and young professionals already in the industry to shape the future of the profession.
Of course, there are many other advantages beyond the sheer number of available job opportunities that make insurance and financial advisory a top career choice.
The Qualifications are Clear and Attainable
The basic requirements to enter the insurance field are both well defined and attainable. They involve studying for, and passing, certain state and professional licensing exams. Most employers provide study assistance to new hires. A college degree is preferred, especially in a relevant field, but is not necessary.
The Work is Varied and Interesting
The insurance business involves constantly meeting new people, learning their stories and needs, and helping them achieve their financial goals. Every situation is different. The field of insurance is also highly entrepreneurial. Advisors build their own business, market themselves, develop their personal and professional network, are active on social media, stay ahead of the industry’s latest trends and more.
Exceptional Earnings Potential
The insurance field offers great earnings potential for those in sales. Advisors essentially run their own business. Establishing a book of clients and building on that success through referrals can lead to high-level financial success.
- Higher commissions with life insurance sales
It’s valuable to know that sales of life insurance traditionally offer the largest commissions. The website Investopedia notes the typical first-year commission for an auto insurance policy is roughly 10% to 15% of the premium. For health insurance, it can be 1% to 7%. Life insurance, on the other hand, pays sales advisors multiples times the percentage of those two other types of insurance.
- Automatic earnings through policy renewals
Financial advisors who provide life insurance and wealth planning earn more than a one-time commission on the products they sell. The commission reoccurs every year as long as the client renews and pays on the policy. This is passive income that is ‘automatic’ for the advisor.
You’re Not Office Bound
Insurance is not a transaction business. It’s about developing client relationships. That means you’ll spend a fair share of your time outside the office. In addition to sales, recordkeeping, and learning, you will meet with clients at various times in their homes, businesses, and other places. You will network, attend events, and more.
Successful insurance professionals and
financial advisors are:
Self-motivated…problem-solvers…honest and ethical…and work with a sense of achievement and urgency. They are also resilient…passionate…love meeting people… and enjoy learning.
You’ll Be Helping People
Some think being an insurance and financial advisor is about numbers and contracts. While that is part of it, it’s far from what defines the profession. Insurance and wealth advisory is about helping people and families prepare for the future, plan for retirement, sustain charitable giving, protect multi-generational businesses, prepare for illness or injury, handle catastrophic events and beyond. Life is surprising and uncertain. Being a financial advisor helps others live their best lives.
Choosing a career as an insurance financial advisor offers challenge, variety, professional independence, personal satisfaction, and financial reward — all in an industry that is defined by consistent and exciting growth.
There are many paths to success in the insurance industry.
Magnet training and development can help you get where you want to be.
Learn more about the M Financial Group Magnet Program.
Sources: Indeed, Bureau of Labor Statistics, Investopedia, Kaplan Financial Education, McKinsey & Company