Insurance Agents In 10 Years: Will Insurance Agents Become Obsolete?
Technological advances have always been a double-edged sword. On one hand, technology makes our lives easier, but on the other, it can render a lot of jobs and industries useless. If you’re an insurance agent, you’ve probably found yourself asking, “When will insurance agents become obsolete?”
If insurance agents become obsolete in 10 years, will your skills as an insurance agent become obsolete as well? Nowadays, with many goods and services going through some kind of digital channel, it isn’t hard to see why you might be concerned.
However, even with the rise in digital technology, will insurance agents become obsolete, or is there something about human contact in business that will keep this profession afloat? In this article, we hope to give you enough information to guide you toward understanding the state of the insurance industry and its outlook for the future.
What Is an Insurance Agent?
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An insurance agent is a professional whose job it is to persuade consumers or organizations to purchase various types of insurance. Though there is a $52,180 median wage that an insurance sales agent earns in the insurance business, how much they make depends on the kind of work they do and what their commission is.
A major role of insurance agents is working for an insurance company and selling whatever type of insurance your company offers. Most life insurance agents, for example, work for life insurance companies. Alternatively, you could be an independent agent working for multiple insurance carriers, offering a personal customer experience by presenting numerous insurance options to each client.
Will Insurance Agents Be Replaced by Future Technology?
Although new technological advances often lead to time, resources, and labor saved, they often leave many professions obsolete. More than likely, the question we should probably be asking isn’t “Will insurance agents become obsolete?” but “When will insurance agents become obsolete?”.
Fortunately, the answer to the latter question is “Not anytime soon.” Insurance organizations incorporate AI-enabled tools to reach a more extensive client base, which has proven to be a good return in online sales. Though this fact is daunting, and the takeover might seem inevitable, below are a few reasons why insurance agents will not become obsolete any time soon.
Human Touch
The main difference between artificial intelligence and human beings doing any job is what we might call the “human touch,” to which there is not yet a comparable alternative. Humans can much more intuitively and effectively use emotions and empathy to make a sale. This is often quite crucial in any client interactions, especially in the insurance industry. While computers can reach a larger client base, humans still do better with individual clients than a machine could.
Positive Job Outlook
While the risk of a technological overtake is scary, every sign points to that possibility not coming true anytime soon. The Bureau of Labor Statistics (BLS) expects the job growth outlook for insurance agents to be seven percent between 2020 and 2030.
Slow Integration of New Technology
Much of the technology that could make insurance agents obsolete already exists today, and if it doesn’t, it is already coming onto the scene. This, however, is not an imminent threat to the future of insurance agents because technology takes time to be integrated and fully utilized. For much of the foreseeable future, insurance providers will still need insurance agents.
Technologies and Trends That Could Make Insurance Agents Obsolete
While insurance agents’ job projection is rising, the invention of new technology is unlikely to halt. Although a future where technology makes insurance agents obsolete is far, many new technologies pose threats. Below are some of them.
Artificial intelligence
Digital tools, like artificial intelligence and machine learning, have many applications and are so helpful that they have become an essential part of many industries. Artificial intelligence via machine learning smooths the insurance claim cycle by accessing large data banks that a human couldn’t, making processing claims more efficient.
Blockchain
Blockchain is a novel technology that has shaped the way people see both currency and security. While it is known for helping to bring cryptocurrency into popularity, blockchain helps increase the efficiency and security of insurance agencies. It offers the best global guarantee as well as speeds up payment time and claims processing.
Chatbots
Chatbots act as digital personal assistants on websites or mobile apps, answering questions and helping both prospective clients and current clients find what they need. Customers can pose insurance questions, for which the chatbot will either answer or lead them to human experts. This process makes it easier for individual customers to purchase insurance policies that are right for them.
When Will Insurance Agents Become Obsolete?
As we have already established, there is a strong likelihood that the continual advancement of technology will one day make jobs like insurance agents obsolete. The available technology is bound to get to a point where it can achieve better results at a faster pace than a human being can. As a result, insurance organizations will more than likely replace human jobs with it.
It is scary to imagine programs and machines taking over our jobs, but that fear is merely theoretical. The truth is that what humans have to offer to the insurance industry isn’t something that machines can currently replicate, and won’t be able to for a long time.
As efficient as technology is at data collection and cyber security, there are other things that a computer cannot do just yet. Human creativity is still the one thing that machines cannot replicate, at least not for years to come. Ultimately, you may not see the day that insurance agents become obsolete.
What This Means for Businesses
When technology gets to a point where the job of an insurance agent might be under threat, both insurance businesses and every independent insurance agent will be affected. While the day is not yet near, here are how companies will be affected when that day finally comes.
Downsizing
Major businesses will always take the opportunity to reduce costs when they can. The day will come when a particular technology becomes more profitable to insurance businesses than paying humans to do the same work. When that day comes, many people will be forced out of their jobs.
Loss of Human Touch
Though employers may not appreciate it, it’s difficult for machines to replace the warmth humans bring to their jobs. If technology takes over the industry, there will be a loss of human touch when dealing with existing clients and potential customers. This skill is vital when trying to sell life and health insurance, which life insurance agents utilize well.
Streamlined Processes
When industries replace human labor with intelligent machines, it will replace many traditional processes and human protocols. The streamlining of any business will involve removing intermediaries and certain slow and costly steps. Though many jobs will become obsolete in the process, the industry is likely to improve in several ways.
Insurance Agents Job Outlook
Hopefully, the points we have made have not scared you away from the career or made you worry about its future. As we’ve stated, a technological takeover of the field is nothing but a plausible theory and, despite these theories, the growth projections for insurance agents in the next 10 years are promising.
The BLS states that the employment of insurance agents is to grow by seven percent between the years 2020 and 2030. This means 50,400 jobs will be available for insurance agents each year over the next decade. If nothing else, this should assure you that insurance jobs are safe.
How Much Money Will Insurance Agents Earn in the Future?
Money is an integral part of any career, and understanding what you stand to earn is crucial. Ziprecruiter details that the average salary of insurance agents is $51,254, but some make as high as $87,500. This suggests that, depending on your skill level, experience, and location, you could earn that much in the coming future.
What Are the Best States for Insurance Agents Jobs?
If you are going to be in the insurance business, you might as well position yourself in the most profitable place possible. Though a median wage for insurance sales agents exists, certain states are best suited to your career. According to Zippia, the best state to work in as an insurance agent is Vermont, with an average annual salary of $60,504.
How to Avoid Becoming Obsolete: The Key to Future-Proofing Your Career as an Insurance Agent
Though there is no immediate cause for concern regarding the outlook of insurance agent careers, it doesn’t hurt to position yourself favorably to avoid it affecting you. Here, we’ve highlighted some tips that can help you stand out above the rest in the event of obsolescence.
Explore Independence
If the insurance industry no longer values insurance agents, the agents who work for these companies will lose their jobs. However, independent insurance agents won’t have to worry about being fired because they aren’t employed by an insurance company. As long as you can maintain a strong relationship with your clients, your career should be fine.
Work from Home
With many careers moving away from the brick-and-mortar model and toward the Internet, it would only be wise to do the same yourself. Working from home via the Internet can be very profitable, as it gives you a versatility that will aid you in your career, whether there is a threat of obsoletion or not.
Additional Training
As the climate of your industry changes, new skills will be required, such as understanding the latest technology and being able to use it. The idea is to make yourself invaluable in your job by learning what new skills the industry will need. By doing this, you will remain an asset to your company and your clients.
Does Being an Insurance Agent Have a Future?
Insurance agents offer help to people who need it. There will always be people who need the support these professionals offer. As long as there is demand for a service, there is a future for those who offer those services.
If you are still in doubt, the projections for this career should put you at rest. With positive job projections over the next decade, the future for the profession seems to be bright and provides no reason it shouldn’t get even better. If you’ve already decided this career is right for you, then the next step is to start setting your career goals and getting the training you need.
Insurance Agents FAQ
Depending on your priorities, you could find work in just about any state. However, certain states are more financially viable, such as Vermont, Pennsylvania, and Nebraska, as they have the highest-paid agents.
The decision to go into any career should ultimately rest on you. However, an insurance agent should have certain qualities such as empathy, willingness to help people in need, and good people skills. If you think you would be a natural in this career, it would be wise to consider it.
It is safe to assume that an insurance agent’s services will be accessible through technology sometime in the future. However, there is no reason to think that this future is coming any time soon. There’s no use in worrying about obsoletion, as all signs point to agents’ jobs increasing in demand for the foreseeable future.
If you plan on becoming an agent, there is no better time than now. The career has a projection of becoming more available over the next ten years, and with increased demand, the average wage will follow suit. It’s a profitable career that can be rewarding in many ways. At the end of the day, you begin your desired career when it feels right.
