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Written By
Heather Sloan
Grow Your Insurance Agency / September 20, 2022

How to Grow Your Insurance Agency in a Competitive Landscape

Written By
Heather Sloan
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How to Grow Your Insurance Agency in a Competitive Landscape

How to Grow Your Insurance Agency in a Competitive Landscape

The insurance industry is booming. This means there’s ample opportunity for insurance agencies, but there’s also a large amount of competition. To succeed, you’ll need more than motivation and a willingness to work: you’ll also need the right lead-generation strategy.

Growth in the Insurance Industry

Since there will always be risk, there will always be a need for insurance. Whether you’re selling health insurance, life insurance, property insurance, or something else, you should never have to worry about dwindling demand.

According to Deloitte’s 2022 Insurance Industry Outlook, global demand for insurance is expected to keep rising. In 2022, global premiums could increase 3.9 percent worldwide.

Certain sectors could see even faster growth. For example, HHS says that approximately 10,000 people turn 65 each day in the U.S. This is important because people age into Medicare when they turn 65. As the population ages, the number of Medicare enrollees grows, and many of these seniors need help enrolling in private Medicare Advantage, Medicare Part D, or Medicare Supplement Insurance plans.

Life insurance sales have also seen impressive growth. According to LIMRA, total life insurance new annualized premiums grew a whopping 20 percent in 2021 – the highest annual growth since 1983. On the property and casualty side, J.D. Power says that auto insurance shopping has increased again in response to rising rates.

But Competition Is Fierce

There will always be people who need insurance, but this doesn’t necessarily mean that selling insurance will always be easy. That’s because you’re not the only one selling – there’s a lot of competition out there.

IBISWorld says there are 415,446 insurance brokers and agencies businesses in the U.S. as of 2022. That’s nearly half a million other agencies, many of which are vying for the same prospects as you. Plus, the number of agencies is growing. Between 2017 and 2022, the number of businesses grew by an average of 0.3 percent per year.

Although that growth rate might seem modest, it means the amount of competition is steadily increasing. Keep in mind, too, that although large agencies are purchasing many of the smaller ones, the total number of agencies is still growing.

The number of individual insurance sales agents is also growing. The U.S. Bureau of Labor Statistics says that there were 507,200 insurance sales agents in the U.S. in 2020. Between 2020 and 2030, the number of agents is expected to increase by 7 percent, resulting in 35,500 additional insurance sales agents by 2030.

Your Agency Needs a Competitive Edge

Many new insurance agents fail. According to Insurance Journal, estimates vary, but the failure rate might be around 50 percent or even 70 to 80 percent.

The failure rates can be scary, but it’s important to remember that demand for insurance is great, meaning success is absolutely possible. The problem is you can’t simply gain a license, put up a sign, and expect the customers to flood in. You have to find customers – and that’s where many insurance sales professionals fail.

Your agency needs a competitive edge – and no, that doesn’t mean you need a gimmick or anything like that. It just means you need a lead-generation strategy that actually produces sales.

Many Agencies Are Sabotaging Their Own Success

Agencies want to succeed, but sometimes they end up shooting themselves in the foot with strategies that don’t work.

Buying bad leads is a great example.

Since agencies need leads, they look for ones they can buy. As they’re also trying to get by on a limited budget, they often search for cheap leads. Unfortunately, the fact that something is cheap doesn’t always mean it’s a good deal. If the leads aren’t qualified and exclusive, agents can end up wasting hours chasing after bad leads that will never go anywhere. The result is wasted money and (even worse) a lot of wasted time.

When you think about this kind of scenario, it’s not hard to see why as many as 80 percent of new agents fail.

You Need a Better Lead-Generation Partner

Insurance sales keep increasing. There are prospects who are ready to buy – you just need a lead-generation partner who can help you connect with those prospects.

High-quality, pay-per-call leads are the solution. As you only pay for the calls you receive, you don’t need to worry about wasting time or money on bad leads. Even better, since the prospect is ready to talk, conversion rates are phenomenal.

Are you ready to see how the right lead generation partner can help you grow your insurance agency? Let’s chat.

 

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