It is amazing to see the life insurance selling marketing share dominated by so few sales agents. 10% of all life insurance sellers control half the market and earn a minimum $100,000 income. Here I share my findings on which life selling marketing pros is in this income and sales group.
Life insurance agents can be classified into three broad categories. Together they compete for as much of the life insurance market share as possible. Find out how a portion of one group dominates life sales.
GROUP ONE The largest group of agents possessing a life insurance license. They are represented by 900,000 salespeople strong. These are split into two sub categories. The first are the newer agents all licensed 4 years or less. The second category contains all levels of experience. These are the overly captive agents sell a multiple group of products. They are the familiar Allstate, Nationwide, S.F., Nationwide, Geico and similar agents.
GROUP TWO The smallest group of life licensed agents Their total base would amount to around 120,000. The largest portion would be wirehouse stockbrokers. Following this are home office sales departments plus the financial institutions.
GROUP THREE Nearly 480,000 professional agents and brokers compose this last group Although they write a tremendous amount of annuities and health policies, here we are only concerned with life insurance market share. Size wise this group amounts to slightly less than 1/3 of the total licensed life agents Formally they are better know as the semi-independent agents and independent brokers.
HOW MARKET SHARE IS CHANGING Despite all the new products and rapid advancement into financial planning one group’s market share is declining. This is happening yearly even though the agent base is annually increasing. The gigantic group of agents in Group One now accounts for under 24% of all life sales. The Group Two agents remain rather consistent with their 8% share. Commanding the lions share of 68% is the third group Each year among them there is an increase in percentage of sales. It is rather amazing how 32% of the total agents can write 68% of the business.
UNDER THE NUMBERS MICROSCOPE Working out the figures mathematically I was curious to find out more relational meaning. How many agents would have to be recruited from the Group One agents just to equal the average performance of just one Group Three experienced pro? The figures of 1.875 times 2.833 gave me the answer. The answer was 5.3 agents. That means that hiring 5 from the first group was the equivalent of one agent from the last group Group 2 agents were not considered as they should not be recruited.
FURTHER NUMBER CRUNCHING Let’s look closer at the semi-independent agents and the independent brokers. A subset of this group can be sectioned out. I call this group the “responders”. This means they respond more often to contracting opportunities for life insurance products, and have more experience under their belt. This subset makes up 40% of the total in group three. Doing some number crunching, it shows this 40% of producers, wrote 70% of group three life cases.
SALES AGENTS EARNING $100,000 INCOME Using these figures illustrates that one out of 7 agents write 47.6% of the total life insurance market share available. Further calculations show that one average producer from this elite group is worth 8.48 salespeople from the group one agents. From this, it is easy to determine than more than 50% of the total life insurance marketing share is produced by 10% of the sales agents. Almost every single on of these producers are earning a yearly income exceeding $100,000.
CAN YOU BENEFIT FROM THIS ARTICLE? If you are an insurance marketer to insurance agents or a company recruiter of licensed agents you sure can. It is very simple. It costs exactly the same for postage and printing no matter which agent you mail. Spend the necessary money to get a list of the very premier “responder” agents You want the agents that dominate the life insurance market share. If you selling life insurance, see what group of agents who need to model your career after to dominate the market share.