The tidal wave of retirements during the next 10 years will leave many agencies without a pipeline of incoming leadership—and the issue is especially acute for small to mid-sized firms.
— PropertyCasualty360.com

HAVE YOU EVER CONSIDERED A CAREER AS AN INDEPENDENT INSURANCE AGENT?

If not, now is the time to do so. Few industries outside of the financial services industry offer the potential for relatively inexperienced professionals to make significant income within their first year of employment.

We see three major trends developing in the Insurance industry leads us to believe that now is the time for you to join a company like Novallus Insurance Brokers.

Trend #1 – Aging workforce.

The average agency principal is roughly 60 years old (Beauchamp, 2014).  The Bureau of Labor and Statistics sees a 10% growth in new insurance agents through 2022 and believes that number will be higher among agents who sell health and long-term care (U.S. Bureau of Labor Statistics, 2012). Industry experts agree with these findings and feel that the demand for insurance sales agents is estimated to increase from 436,000 to 492,000 by 2016, requiring 200,000 new hires assuming a 33 percent attrition rate. Attrition rates are actually much higher. According to the Life Insurance and Market Research Assn., the 4-year retention rate for agents was only 13 percent in 2004; more recently, only one in six agents remains with the average insurance company after 4 years, according to an October 2008 Deloitte study (Toops, 2014).

Novallus has developed a core of 6 value propositions that are important to this segment of the workforce and will allow us to out hire our competitors. See our Recruiting Plan for additional details.

Trend #2 – Ongoing Technological Breakthroughs

The digital era has transformed our society, and insurance is no exception. Consumers have access to 24/7, online quoting and purchasing tools. For straightforward products, such as basic auto insurance, internet-based services provide clients 

with an appreciated level of convenience. This falls short, however, when dealing with clients with more complex lives. Consider those who own an at-home business, rental properties, business owners, collectibles, and exposure to professional liability, etc. These clients need professional consultation that an online quoting system isn’t capable of delivering (Beauchamp, 2014). This is where we prove our worth. We have the knowledge, experience and resources needed to provide our clients with custom solutions that best fit their needs. 

Trend #3 – Major Demographic Shifts

Post-recession growth looks new and different: Minnesota populations continue to shift toward a more urban lifestyle. The 7 county metro area experienced growth rates of 15% - 25% from 2000 – 2010 (Brower, 2012). In addition to this new housing starts have reached pre-recession levels. This is an indication there will be extensive need for P&C insurance for these transplants and new homes. 

Population aging is beginning to affect MN. The number of older adults has increased drastically in the last 10 years and that is just the tip of the iceberg. According to the Minnesota State Demographic Center we will continue to see accelerating population aging through 2030. As a matter of fact, it is anticipated that we will have more individuals over 65 than school age by 2020. This will present a unique opportunity for the insurance industry. Consider a recent survey conducted by the MN Department of Human Services. The survey found that ~35% of Baby Boomers “don’t know” how they will cover the cost of long-term care. Another 25% said it would be self-funded! Life/Health and LTC will make-up the other 30% of our business.

Summary

An aging workforce, technological upheaval and significant demographic shifts make this an opportune time and market to start an insurance agency with the strategic focus and distinctive vision like Novallus. 

Why should you join Novallus Insurance Brokers?

We have focused on creating a client-centric process. 

  • We have a beautiful and consumer website that is fully responsive for mobile users. We even have integrated mobile quoting.
  • We meet with our clients (in person, videoconference or phone) every year - no matter what to ensure their insurance needs are met.
  • We will never work with only one insurance provider. We are an independent company for the benefit or our clients and their families.

We have focused on serving our agents. To do this we focus on 6 value propositions:

We know that when our agents succeed, we succeed.
— Tom Wertish, Agency Principal
  1. Long-term career development through a personal development plan
    • Clear and transparent career paths

    • Agent goals aligned with company goals

  2. Sense of purpose and meaning in work through our 5% "give back" plan
  3. Access to mentors and company champions through formal and informal mentoring opportunities
  4. Work/life flexibility through flexible work arrangements and participation in agency goal planning
  5. Tech-savvy work environment
    • A custom Infusionsoft CRM
    • An Automated Marketing platform with custom campaigns built to deepen client relationships
    • An Automated Sales process so much of the sales process is done for you allowing you to serve more client
    • Fully responsive websites so that clients can find them on any device
  6. Open social networks that embrace honest/candid communication
    • Organizational goals communicated clearly without corporate-speak
    • Open channels for team member feedback
    • Social infrastructure for idea-sharing

What should you do now?

If any of this resonates with you then, you may be a cultural fit for Novallus Insurance Brokers. Fill out the form below and our agency principal, Tom Wertish, will call you to connect. 

So, fill out the form below and make today the day you decided to do something amazing.

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References

Insurance Sales Agents. (2012, May 1). U.S. Bureau of Labor Statistics. Retrieved July 30, 2014, from 

http://www.bls.gov/ooh/sales/insurance-sales-agents.htm

Beauchamp, P. (2014, July 21). Top 3 trends changing the landscape of insurance. Insurance News and Analysis 

for Risk Managers, Agents, Brokers, P&C Insurance Pros. Retrieved July 30, 2014, from 

http://www.propertycasualty360.com/2014/07/21/top-3-trends-changing-the-landscape-of-insurance

Brower, S. (Director) (2014, January 1). Minnesota Changing Demographics. Lecture conducted from Admin 

Minnesota, Minneapolis, MN.

Liakopoulus, Andrew (2014, January 1) Recruiting Generation Y, Insurance News and Analysis for Risk 

Managers, Agents, Brokers, P&C Insurance Pros. Retrieved July 30, 2014, from 

http://www.propertycasualty360.com/2010/01/01/recruiting-generation-y

Toops, L. (2014, June 11). 5 Megatrends That Will Revolutionize Insurance. Insurance News and Analysis for 

Risk Managers, Agents, Brokers, P&C Insurance Pros. Retrieved July 30, 2014, 

from http://www.propertycasualty360.com/2014/06/11/5-megatrends-that-will-revolutionize-

insurance?page=4

Kayne, E. (2013, June 13). Census: White majority in U.S. gone by 2043.NBC News. Retrieved July 30, 2014, 

from http://usnews.nbcnews.com/_news/2013/06/13/18934111-census-white-majority-in-us-gone-by-

2043?lite

Small Business Profile. (2013, February 1). Retrieved August 7, 2014, from 

http://www.sba.gov/sites/default/files/mn12.pdf

Skene, B. (2013, November 21). Blog. Retrieved August 7, 2014, from 

http://www.benetrends.com/blog/everything-you-need-to-know-about-insurance/