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The 10 best states for insurance agents in 2021
06 Oct 2021 at 11:06hrs | Views
- The US insurance industry remains robust during the Covid-19 pandemic
- However, the quantity and quality of employment opportunities in the sector differ considerably from state to state
- Key variables influencing employment opportunities in different states include average incomes, number of jobs, local quotient, as well as the ease or difficulty of obtaining an insurance agent license
Despite the challenges and unpredictability of the Covid-19 pandemic, #Employment In Insurance, 2011-2020">the US insurance industry remains robust, with nearly 6000 companies underwriting $1.28 trillion in net premiums in 2020, and providing employment for roughly 3 million people. Indeed, the industry recorded a 7.1% annual increase in the second quarter for net premiums, which grew from $327,670 million in 2020 to $350,903 million in 2021.
Nevertheless, insurance agents continue to face an uncertain business environment, and their prospects for developing a viable and successful career in the insurance industry depend on a variety of factors, including the state they choose to work in. Opportunities differ considerably from state to state, so it is crucial that insurance agents make well-informed, strategic decisions about where the most promising and financially beneficial work opportunities are located. This is especially important for those entering the industry, whose attention might be more focused on more immediate objectives such as passing their insurance agent exam.
While it can be difficult to make direct comparisons, some states clearly have a more conducive environment for building a successful career in the insurance industry than other states.
Below is a compilation of ten of the best states for insurance agents, based on May 2020 data from the Bureau of Labour Statistics:
1. Texas
Industry employment numbers: 34 260 insurance agents
Average incomes :$68 220p/a
Local Quotient: 0.96
2. California
Industry employment numbers: 39 680 insurance agents
Average incomes: $75 520p/a
Local Quotient: 0.82
3. Florida
Industry employment numbers: 33 360 insurance agents
Average incomes: $61 570p/a
Local Quotient: 1.34
4. New York
Industry employment numbers: 22 630 insurance agents
Average incomes: $93 220p/a
Local Quotient: 0.88
Industry employment numbers: 15 540 insurance agents
Average incomes: $ 68 200p/a
Local Quotient: 0.94
6. Ohio
Industry employment numbers: 15 080 insurance agents
Average incomes: $68 140p/a
Local Quotient: 1
7. Washington
Industry employment numbers: 10 500 insurance agents
Average incomes: $69 770p/a
Local Quotient: 1.12
8. Pennsylvania
Industry employment numbers: 15 490 insurance agents
Average incomes: $66 430p/a
Local Quotient: 1.08
9. Michigan
Industry employment numbers: 11 220 insurance agents
Average incomes: $68 560p/a
Local Quotient: 0.97
10. North Carolina
Industry employment numbers: 13 680 insurance agents
Average incomes: $62 450p/a
Local Quotient: 1.08
Licensing: A key factor to consider when assessing which states work an insurance agent
It might appear that California and New York should be ranked above Texas in this list, based on the latter having a lower average income. However, Texas could arguably be considered as a more favorable state to pursue a career in the insurance industry, considering the anticipated growth of the insurance industry, and the increasing number of people expected to be entering the sector over the next decade. This is because Texas has a higher local quotient than California and New York, and the process of obtaining an insurance agent license is simpler and quicker in Texas than it is in California and New York.
In California, candidate insurance agents must complete between 32 and 52 hours of training (including 12 hours of ethics training) and are required to pass an examination before obtaining a license to practice as an insurance agent. Similarly in New York, candidate agents must complete between 20 and 90 hours of training, as well as pass an examination before obtaining their license (though exemptions are permitted for individuals with relevant experience recorded in employer statements). In contrast, it is much easier to obtain a Texas insurance license because the state does not require any training to be completed by candidate insurance agents and only requires that they pass the relevant exam.
Final Thought
The ease of obtaining an insurance agent license in Texas, together with the favorable incomes and plentiful job opportunities available in the local insurance sector, makes this state among the best places in the US to be an insurance agent in 2021.
Source - Byo24News