Being an insurance agent can be a gratifying career. Not only can you earn a solid living, but you can also help protect your clients in several different ways.
If you’re new to selling insurance, it can be challenging to get started. A great place to begin is to determine what type of insurance you want to sell. There are many different markets, and each provides pros and cons. Below, we’ve listed five of the best niche insurance markets to help you explore your options!
1. Life
Life insurance may not be the first type of policy you consider when entering the industry, but it’s perhaps the best niche to focus on if you want to make the most money. That’s because the commissions on life insurance policies are often much higher than other types of insurance.
The most significant benefit to selling life insurance is that most companies will pay you anywhere from 100% to 115% of the first year’s premiums as an upfront commission for new policies. While the residual commission you’ll receive every year after that will be much lower than other insurance policies, many agents prefer this larger upfront payment.
You’ll also continue to collect residual commissions as long as the client holds the policy. This time could be 20 or 30 years for term life policies, which could be significantly longer than a typical auto insurance policy.
The flip side is that life insurance isn’t as easy to sell. One of the main reasons is that people don’t need to have life insurance. It’s certainly something that would benefit most people, but there is no law requiring them to carry this type of policy, unlike auto insurance.
2. Property and Casualty
Property and casualty insurance is an excellent niche for one main reason – just about every person who owns a property will need this insurance. In fact, almost all homeowners who carry a mortgage on their property are required by their lender to maintain the policy.
Unlike life insurance, your sales pitch for property and casualty insurance will focus more on the benefits of your policies and the advantages of working with you rather than convincing someone they need this type of insurance.
Upfront commissions won’t be nearly as high with property and casualty as with life, but the residual commission should be higher, at least in terms of percentage. Again, this is a great niche to consider if you’re looking to make a lot of sales, which could serve as your “in” to upsell clients in the future.
3. Health
Everyone needs health insurance, so selling in this niche will provide you with a vast pool of prospective clients. In addition, the health insurance landscape has changed considerably over the last few years, giving independent agents more opportunities for sales in this niche.
An increasing number of people search for health insurance independently, outside their private employer. This is an excellent opportunity for you as an agent to make your mark in the industry.
Aside from primary health insurance policies, you can also offer Medicare insurance, which expands your potential reach even further. However, one potential downside to this niche is it can be hard to understand and, as a result, require a lot of upfront education and research.
4. Auto
Auto insurance is one of the most common types of insurance. It’s also one of the least expensive in terms of annual premiums. Just like property insurance, every driver must carry auto insurance, which provides a large potential client base.
This niche is a volume game, though. You’ll need to sell a lot of auto policies to make a considerable amount of money. However, many agents will bundle auto insurance with other types of insurance to simultaneously increase their revenue and client base.
Doing this could make more money for yourself and potentially save your clients money.
5. Commercial
Just like individuals, businesses have insurance needs, too. One of the best parts about selling commercial insurance is that there are many types – vehicle, building, general liability, workers’ compensation, etc. The market for commercial insurance is also relatively large, as potential clients could be any business in your area.
However, the downside to commercial insurance is the same as its upside. Since so many types of insurance fit into this niche, it can be challenging to learn them all and become an expert in them. In addition, selling this type of insurance requires a lot of know-how, so it may not be for everyone.
Discover the Good Life
We hope you enjoyed this guide on five of the best niche insurance markets! As you can see, the path to success can be full of challenges, but the potential payback makes it all worth it.
At Good Life Insurance Associates, our experienced sales associates are here to provide support and training for both new and seasoned agents. To learn more about careers with GLIA, explore our business support services. Or, speak with a team member today about your journey to becoming an independent agent. Again, thanks for visiting our blog; we hope to help you soon!
Want to learn more about what it takes to succeed in insurance sales? Read our blog on effective lead-generation strategies for insurance agents.