On this particuliar day, we had a young couple join the group. I say young, because the rest of us are pushing the big 5-0 or sliding right on by it! Anyway, we listened to the young folks talk enthusiastically about growing their business. We all smiled.
The topic of conversation then turned to, "If you were a young person today, would you launch a career as an independent insurance agent?" The crowd had mixed emotions.
It's hard to start an agency from scratch. If you do not have experience, it is hard to get insurance companies to let you write business. If you live in certain regions of Kentucky, many companies will not do business with you PERIOD. Startup costs, including investments in technology, can be cost prohibitive.
On the other hand, a young person starting out might go to work for a larger agency or conglomerate. Looking at our group, several were alumni of life insurance companies here in Kentucky. They agreed, their life insurance sales on a debit, certainly better prepared them for life as an independent insurance agent. (We did not have any captive agents in our group)
Many reflected on the nature of our industry. Like many industries, insurance goes in cycles. Sometimes the market is "soft," with premiums priced so low cash flow gets stymied. Sometimes it is a "hard" market, where agents with the right products at the right price point can make a good living. Being a successful insurance agent means working hard and working smart....no matter what the market conditions are.
We "old-timers" lamented about the diminished personal contacts and relationships that used to exist between agents and the companies they represent. Insurance carriers continue to scale back on service reps, who once upon a time served as mentors and the "go-to" folks, when there were questions or challenging cases. Today, more often than not agents are refered to a website or directed to some phone clone who you never met, and who cannot understand those of us with a Kentucky drawl. (How y'all doin?)
So the question remains, if we had it to do all over again, would we become insurance agents today? While we all agreed we had endured some lean times, all but one said they would do it again. While some doors of opportunity have closed, other doors have opened. New cluster groups like Smart Choice Agents program can give "newbies" a leg up, as they begin their insurance careers. New products like long-term care are providing new revenue streams. In the future, tech savvy agents might find all kinds of new sales venues online and through video conferencing. It's a brave new world.
So, there is alot to think about. But, as for the folks in our agency, the answer is a resounding "YES!" It's not always an easy road, but being an independent insurance agent is a satisfying and rewarding career. If you treat your clients right and do a good job of underwriting the risk, in the big scheme of things you will find success.
To learn about the licensing process for Kentucky Insurance Agents refer to the Kentucky Office of Insurance site.
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