Deciding on what insurance to sell is a critical decision for an agency, but deciding can feel overwhelming and tricky. We tackle this issue by examining the best insurance your agency should sell below.
What To Consider When Choosing Insurance Types To Sell
Starting an insurance agency is an excellent opportunity for insurance specialists to step out independently and chart their own path. But one of the key things to know before opening an insurance agency is what insurance to specialize in and sell.
While there are benefits to selling diverse insurance types, there are also many advantages to being a niche agency that focuses on targeting a sect of customers and selling specialized insurance. Before deciding on a niche, you’ll have to consider the local industries around your agency, the market competition, and your own experience with the insurance type.
Profitable Insurance Types To Sell
While there are plenty of different types of insurance, the three specialties consistently ranked as the most profitable for insurance agents and agencies are life, commercial, and property insurance. If you’re looking for the best insurance your agency should sell, these three options are a great place to start.
Life insurance is consistently the most profitable type of insurance for agents to sell yearly. While other insurance products typically max out at 20 percent commission for the agent, life insurance agents can receive a commission of 100 percent for the products they sell.
This increase in commission is the main reason life insurance agents are consistently the most well-paid, but there are still challenges for the industry. For one, life insurance is a delicate subject for many people, so generating leads and closing on agreements is more difficult for life insurance agents than others.
Commercial insurance is another lucrative type of insurance for agents and is frequently the focus of many large, independent agencies. This is the biggest market on our list, with nearly half of all premiums written in the US being for commercial insurance. Therefore, there’s plenty of opportunity for young and new agencies to break in.
Commercial insurance, however, is perhaps the most complex product sold and requires a lot of education, skills, and experience to generate leads and close sales. But commercial insurance customers are known for their loyalty and consistency, so once you get your foot in the door, you have a solid foundation for the agency.
Property insurance is also a common form of insurance and presents a large pool of customers to target. After all, anyone who owns a house or property will need insurance. As long as property owners are in your area, you’ve got a solid market to compete in. Property insurance, however, has lower premiums compared with others and a small commission percentage, so this market is more about quantity than quality. But for agents and agencies just getting their feet wet, property insurance is a great place to start.