It’s common knowledge in the insurance world that there is aserious demographic issue among producers. Theaverage age of an agent or broker, according to industrystatistics, is pushing 60 years old. A recent LIMRA surveypegged the average life & health producer at 56 years old,while a white paper from McKinsey & Co. puts the average ofinsurance agents at 59 years old.

What’s more, this demographic problem is only growing worse. Atthe present rate by which the distribution system is aging, andgiven how many producers are likely to retire or otherwise leavethe industry over the next 10 years, the industry needs to bring in60,000 new agents and brokers every single year just to maintainthe current size of the distribution system. Given that industryrecruiting is nowhere near those numbers, and given theextraordinarily high washout rate of new producers (as low as 10%make it through their first five years, regardless of age), it doesnot take an advanced degree in statistics to see that the insurancebusiness is facing a significant change in manpower in thenot-too-distant future unless things change drastically, andimmediately.

Related: Halting the brain drain: Can insurance protect itsintellectual legacy?