In today's economy many people are looking for flexible jobs that have the potential for a good income. It's no wonder that many job seekers are seriously considering careers in the insurance business.
Twenty-five years ago, most insurance agents were contracted directly by the insurance companies whose policies they sold. Agents were in-house representatives of firms such as Manulife or Sun Life and employers were responsible for keeping tabs on their sales forces. Recently a new business model has sprung up.
Managing general agents (MGA's) have dominated the industry. And in the span of a decade, these agencies have quietly grown into one of the most powerful forces in Canada’s life insurance industry.
The MGA model helps deal with a large roster of independent agents, while helping agents obtain access to various policies sold by insurers, in exchange for a cut of the action.
According to Investor Economics, a financial industry consultancy, the MGA channel is now responsible for at least 44 per cent of the new life insurance policies sold to individuals across the country.
What does this mean to you?
Today, most agents are independent, and can sell policies from multiple insurers. So, more than likely you may find yourself working for an MGA as an independent agent. In fact, the number of independent agents selling life insurance has soared to 76,300.
That means, the role of career agents has dwindled to the point that they represent less than one-third of the industry’s sales. The bulk of sales come from independent agents.
Only a handful of life insurers, including London Life Insurance Co. and Industrial Alliance Insurance and Financial Services Inc., are still recruiting and using career agents.
Sun Life has the biggest stable, with more than 3,500 people across Canada. Manulife Financial, the largest Canadian-based life insurer, conducts more business through MGAs than any other underwriter. But be careful. The life of an insurance agent is not always a path to riches. Especially
if you are a commissioned sales person.
Simply put, if you don't sell...you don't make a commission.
But in most cases if you can market yourself and get clients you stand
a good chance of making a decent income whether you work for an MGA
or choose to be a career agent.
To learn more about how to be an Insurance Agent in Ontario
visit the following link and you can download my FREE report that will show you how to
get a job as a life insurance agent