Is Becoming an Insurance Agent in 2025 Worth It

As the industry for PNC starts to grow we’ve got to ask the question is is it a good time or should you start an insurance agency coming into 2025 going into 2026 let’s go over the pros and the cons the options that you have available and why there are some really good reasons you should look at doing this and ultimately there’s some really rough reasons why you may not want to be in this industry if you look at some of the Articles the trends for the industry is growing rapidly so from currently 2025 going into 2030 2031 they’re going to see a massive increase in growth in the personal lines Insurance overall the next 3 to four years we’re averaging about a 4 to 4 and a half% increase which in a large industry already is pretty massive so there’s a lot of business that is growing into the industry on top of there’s a lot of people exiting the industry so as you start to grow your agency you’ll have opportunities to work with or even purchase other books that are starting to leave the industry or you get enough growth and you get enough reputation to where you don’t need to purchase it where customers are automatically going to you because people are leaving the industry the other piece is there is rising demand in home insurance the home insurance policies have grown rapidly that’s kind of a con as well because the reason it’s a bigger demand is because there’s also a lot of problems getting insured in the homes insurance doesn’t love homes right now a lot of them are 60 plus years old there’s a lot of roof issues there’s a lot of weather related claims happening and they’re trying to self-protect what they have built over the last 10 20 years going forward with some of these older homes so they’re a lot pickier with underwriting processes but that means that people are looking people are shopping more trying to find companies that are a good fit my personal policy has gone up over $1,000 from last year went up another $400 this year caused me to look at some options now I’m going to save $11,000 so even looking at my own policy that I’ve had for four or five years it makes sense to look at other options and there’s other companies that are more competitive with the same product or a better product going forward and if you have those carriers which we’ll talk about in a moment you’re going to have the winning strategy to move you forward and the biggest thing that everyone talks about is commercial which commercial is growing there’s a little bit of turmoil in there because there are a few issues with like the premiums and the rates and the industry itself has slowly grown it’s grown less than it has before so starting business is starting to happen more often there’s a lot of younger people getting in the industry as far as any industry your buildings you’ve got new CPAs you’ve got new jobs all these workman’s coms truck drivers all those things are the commercial industry and those are the bigger premium amounts you’re going to see those larger policies to where you’d write a home in Auto you might get a $5,000 account you write one guy that drives a truck that’s a $122,000 account so there is a big difference and there’s also you got got a factor in longevity all of those things but the industry is still growing even though it’s a little bit tighter as far as the commercial in general the biggest reason you would want to start an agency is stability this is an industry proof there’s no at least from what I’ve seen we went through covid nothing stopped us there we just went through a hard market and to be honest with you our agency grew so if you know the marketing plan and you know the customer you’re going for if you can plan those pieces out and budget accordingly you can still grow in a hard Market there is a lot of potential and you’re almost unbreakable depending on the weather related claims the way the econom is working it’s almost like you get a raise automatically when everything goes up now we don’t love that because it’s more work for us shopping doing all the things and customers upset those pieces aren’t really our goal but you get paid more so there is a little bit of a benefit at the end of the day to all of those issues that happen but you get to reap the benefits of doing the work compare that to any other job you work twice as hard and you maybe don’t get a raise that year because the economy was tough and that job didn’t pay correctly so it is a Recession Proof industry at least from everything I’ve ever seen the other positive is Insurance isn’t a luxury it’s required by everything you do everyone I know or at least most people have Home Loans Home Loans require you to have insurance if you have a car loan they require you to prove you have insurance if you own a car every state just about and it’s something that you have to have and then when it becomes a luxury and you have all your nicer expensive home nicer jewelry all those things you’re going to want to ensure that anyways so it actually gets better the more luxury it gets but in general it’s a necessity not a luxury now the negative is there’s High competition so if you don’t know what you’re doing going into this industry you’re going to struggle having growth that’s really just the honest truth of it there’s a lot of insure tech companies coming out all the lemonade wannabes all of the it guys that started uh it’s called insure Tech and they started up a company based around technology they’re scooping up business most of it’s kind of trash to be honest with you and if they don’t do it correctly or fix those things they just sell it that’s their whole goal they get it a certain size they sell it walk away and that’s how those insure Tech usually make their income but it affects you because they’re fighting for your customers they’re being more convenient for instead of you having to talk and do all those things which is a benefit because a lot of the customers that do lean towards that even know the whole world will eventually lean towards that because of the age of the drivers as they start to grow into their 20s and 30s and 40s those are the people that use apps those are the people that use technology that want the ease of use and a little bit of advice so that need for you is always going to be there but right now you’re fighting with that business with those type of companies and on top of it you’ve got some major companies which you could sell yourself they sometimes sell on the side against you so you kind of have a a little bit of a competition there with different companies and different types of business that you’re trying to go after leave this to say essentially it’s a little bit oversaturated in some areas that’s why we’re licensed in 10 plus States we’re not saturated in the areas where people are shopping so we’re going where the customers are looking where we can be the best benefit if we can connect all the carriers in certain areas where the customers sh shopping where the need is the most you can provide value for them and help them understand educate and Ure insure them so you have those options as an independent agent to where you can have that available that’s where you’re going to overcome a lot of those insur Tex and the other marketing channels to where you’re more available than other options are now the positive to that is you can project the growth you really can get your numbers down to on average I’m this good of a salesperson I know I need to make this many phone calls to make this many sales I get this many sales per household and I get this much premium per household and I have an average retention of this they stay with me for 5 years and if you’re good at communicating and you’re friendly and you’re likable then customers will really trust that you’re going to take care of them and in those incidents is you’re going to hold customers longer if you’re not that person you just know you have to get more customers to grow to a certain level so planning the business isn’t difficult you’re able to scale at the level that you need to scale maybe it’s hiring other people there’s other pieces that we’ll talk about here in just a moment that is a benefit where you can easily predict what your next steps and levels are the other pro and con that we have to look at is what is your earning potential Mark I get you’re talking oh I can grow I can do all this stuff but how much will I actually make in this industry I can tell you for sure if you’ve done any type of research in this industry you know that this insurance industry whether you’re even in health and life whether you’re in Medicare in PNC personal L and property casualty all of those that’s a long-term play you will have a lot more long-term opportunity and growth with this industry more than you will almost any other industry remember this is all about renewals you’re getting income for things you’ve done previously now there’s a little bit of work that comes with that if customer wants red car to change to blue car and the different questions I’m billing and things like that so there’s a service aspect to it but in general the average sales agent will earn anywhere from 55,000 per year According to some of the research they said 89,000 is the average I don’t know if it’s that high but it’s always been close to that 55,000 for the average your top agents are earn over 200,000 per year so you have income ranging anywhere from 50 to 200,000 it just depends on ay how good at you how well can you learn can you grow in this industry if you can doesn’t matter you just keep doing it the longer you do it the better you get at it the better you get at it the more income you’re going to earn it’s really just tied to how many people’s lives you can impact and help them with insurance then in that case you’re going to get paid accordingly to that if you help a lot of people and you grow a book and an agency and all of those things you’re going to earn over over that 200,000 some are even in the half million to a million dollar per year so there are options available where you can grow into something extremely large now that’s also the negative is if you’re not good at it at first but you have the commitment and you’re like this is my industry this is what I’m going into 100% agree I’m going to get a loan I’m going to do this I’m going to grow and you don’t have the direction that’s where you really need the most help is the direction then you’re going to struggle succeeding and by that I mean you’re not going to have any income you’re going to lose customers you’re going to realize that people don’t say the truth half the time and a lot of people won’t buy it from you if you don’t follow up a certain way there’s all of these processes that you need to have in place that get you to those levels and that’s one of the cons is you almost have to be self-sufficient to where you know how to grow and Market to get your business if you don’t have a lot of income or money that you can throw at it which is another option buy leads work Le but even then that’s there’s a learning curve to that those pieces are the cons is if you don’t have have the availability or you don’t have someone that you can work with that will teach you that you’re going to have a lot lower of a success rate than most people will in this industry if you are looking to work with someone in the industry I’ve got a link in the description below we started a weit list to where we’re offering to work with people it’s something we’re testing out so we’re offering a few things 1099s more of a franchise model if you want to work under our agency or if you’re just looking to work with a cluster which is what we joined is a group of people that have appointments and all those things you can work directly with the company that we work with with and just bypass us it’s really just to help you guys learn whatever your next steps are we’re there to help you with now they say 8% is the people that stay from my experience it’s usually closer to 60% leave so there’s about a 40% retention of employees that are in the industry most of the reason people join the industry which is the biggest positive is for flexibility I believe 78 or 80% is the average of people that join the industry because it is a lot more flexible once you’ve built something if you’re going in as employee a little bit less flexible although there is a lot of flexibility Even in our agency we do a lot of everything we do based on appointments which means if you’re not having to work on a quote you’re not out prospecting you’re not doing all those things and maybe you do need a longer lunch or you do need some relaxed time have some coffee or whatever the case is you have more available time to get up you can walk around you can take some available time and then sometimes you got to take a week off or take a couple days away and that’s available in most of the industry in general especially if you’re going to start it yourself now the other piece that you have to think about is what is the technology cuz really AI is starting to take over everything is this something that we’re going to be replaced by I possibly a little bit I’d say about 30