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Why I Quit being a Financial Advisor in Singapore

As of 2022, there were 26,388 insurance agents registered with the Monetary Authority of Singapore (MAS). This number has been declining in recent years, as more and more agents are quitting the profession.

Insurance agents play an important role in the insurance industry, helping individuals and businesses to obtain the necessary coverage to protect against financial losses. However, being an insurance agent is not an easy job, and many individuals who pursue this career path eventually decide to quit. There are a variety of reasons why people quit being an insurance agent, ranging from job-related stress to dissatisfaction with compensation and job security.

Let’s start by exploring the insightful findings from a study conducted by the Association of Financial Advisers Singapore (AFAS). The study reveals the top five reasons why insurance agents decide to leave the profession, shedding light on the challenges they face in their careers. By understanding these reasons, we can gain valuable insights into the industry and potentially find ways to address these concerns. So, without further ado, let’s delve into the top five reasons why insurance agents choose to quit their roles.

Top five reasons why insurance agents choose to quit

Low income

Insurance agents are paid on commission, so their income can be unpredictable. This can be a major reason why agents quit, especially if they are not able to generate enough sales.

High stress

Insurance agents are often under a lot of pressure to meet sales targets. This can lead to stress and burnout, which can make it difficult to continue in the profession.

Lack of support

Insurance agents often feel like they are not getting the support they need from their employers. This can include things like training, marketing materials, and access to leads.

Unethical practices

Some insurance agents engage in unethical practices, such as misleading clients or making false promises. This can damage the reputation of the industry and make it difficult for honest agents to succeed.

Change in career goals

Some insurance agents quit because they want to pursue a different career path. This could be due to a change in personal circumstances, such as starting a family or changing interests.

One of the main reasons why people quit being an insurance agent is job-related stress. Insurance agents have to deal with a wide range of clients, each with unique needs and preferences. They must also keep up with the latest insurance products and regulations, which can be a challenge. Additionally, insurance agents are often required to work long hours, including weekends and evenings, to accommodate the schedules of their clients. This can take a toll on their mental health and lead to burnout.

Another reason why people quit being an insurance agent is dissatisfaction with the compensation and job security. While some insurance agents can earn a decent income, others may struggle to make ends meet. Commission-based pay structures can be unpredictable, and agents may not know how much they will earn from month to month. Additionally, insurance companies may decide to downsize or restructure, which can lead to job insecurity and uncertainty for agents.

Furthermore, the insurance industry is highly competitive, and agents must work hard to differentiate themselves. This can be a daunting task, especially for new agents who are just starting out. Building a client base takes time and effort, and some agents may not be willing to put in the necessary work to succeed.

Finally, some insurance agents may simply lose interest in the job. Over time, the daily routine of selling insurance policies can become monotonous, and agents may feel unfulfilled in their work. Additionally, some agents may realize that they are not passionate about the insurance industry and may decide to pursue other career opportunities.

The reasons for the decline in the number of insurance agents are complex and multifaceted. However, some of the factors that are contributing to this decline include:

Decline in Insurance Agents

The rise of digital platforms

More and more people are now buying insurance online, which is reducing the need for insurance agents.

The increasing competition

The insurance industry is becoming increasingly competitive, which is making it difficult for agents to generate sales.

The changing regulatory landscape

The MAS has introduced several new regulations in recent years, which has made it more difficult for insurance agents to operate.

How to not suffer burnout as a financial advisor

Despite the challenges, there are still many opportunities for insurance agents in Singapore. The industry is still growing, and there is a demand for quality insurance advice. If you are considering an insurance career, it is important to do your research and choose a reputable company. You should also be prepared to work hard and build relationships with clients.

However, it can also be a stressful and demanding job that leads to burnout. Burnout is a state of emotional, physical, and mental exhaustion caused by prolonged stress. When insurance agent experiences burnout, they may lose interest in their job, feel overwhelmed, and have a negative attitude toward their clients. Insurance agents can take several steps to stop burnout and prosper in the industry.

  1. The first step to stop burnout is to set realistic goals. Insurance agents should set achievable targets for their sales and other performance metrics. When goals are unattainable or unrealistic, agents may feel overwhelmed and stressed. By setting realistic goals, agents can focus on their work and feel a sense of accomplishment when they achieve their targets.
  2. The second step is to maintain a healthy work-life balance. Insurance agents should set clear boundaries between their work and personal life. This means creating a schedule allowing time off to recharge and pursue hobbies and other interests. Taking time off work can help insurance agents to reduce stress and avoid burnout.
  3. The third step is to prioritize self-care. Insurance agents should take care of their physical, emotional, and mental health. This includes eating a balanced diet, getting enough sleep, exercising regularly, and seeking support from family, friends, or a therapist. When insurance agents prioritize their well-being, they can better manage stress and reduce the risk of burnout.
  4. The fourth step is to stay motivated and engaged in the job. Insurance agents can find motivation by setting challenging but achievable goals, seeking feedback from clients and colleagues, and focusing on the positive aspects of the job. Additionally, insurance agents should continue to learn and grow in the industry by attending conferences, seminars, and training programs.
  5. The fifth step is to build strong relationships with clients. Insurance agents who have a positive relationship with their clients are more likely to feel motivated and engaged in their work. Agents can build relationships by providing excellent customer service, listening to their client’s needs and concerns, and offering customized solutions to meet their client’s unique needs.

Ultimately, the decision should be based on your personal goals, preferences, and circumstances whether to quit or change the agency you work for. It’s not uncommon for insurance agents to change agencies or companies during their careers, as they seek better opportunities, higher compensation, improved work culture, or other reasons.

The insurance industry is highly competitive, and many agents are constantly looking for ways to improve their performance and grow their business. Changing agencies can be one way to achieve these goals.  That being said, here are some things you might consider when making this decision:

Why you should Switch Insurance Agencies

Assess your current job satisfaction

Are you happy with your current job? Do you feel fulfilled by the work you do? If not, what aspects of your job are causing you to feel unhappy or unfulfilled?

Evaluate the financial advisory

If you are thinking about changing to another agency, evaluate the new agency carefully. What is the culture like? Do they offer better benefits or compensation? Do they offer more opportunities for growth and advancement? Is the workload manageable?

Consider your financial situation

If you are thinking about quitting your job as an insurance agent, you need to consider your financial situation. Do you have enough savings to support yourself while you look for another job? Can you afford to be unemployed for a period of time?

Reflect on your long-term goals

What are your long-term career goals? Does being an insurance agent align with those goals? If not, what career path would be a better fit for your goals?

Seek advice

Talk to friends, family members, or a career counselor to get an outside perspective on your situation.

Before you quit, there are several potential perks to changing insurance agencies as an insurance agent, including:

More competitive compensation

Depending on the agency, you may be able to negotiate a higher salary or commission structure, which can increase your earning potential.

More opportunities for advancement

If you feel like you’ve hit a ceiling at your current agency, a new agency may offer more opportunities for growth and advancement.

Access to different types of insurance products

Some agencies specialize in certain types of insurance products or serve a specific niche market. By changing agencies, especially from a traditionally tied agency to an independent financial advisory, you may be able to expand your knowledge and expertise in new areas.

Improved work culture

The work culture and management style can vary significantly between insurance agencies. If you are unhappy with the work culture at your current agency, a new agency may offer a more positive and supportive environment.

Better technology and tools: Some agencies may invest in better technology and tools, lead generation methodologies which can make your job easier and more efficient.

It’s important to note that not all insurance agencies will offer these perks and that switching agencies can also come with its own challenges, such as building new relationships with clients and adjusting to new company culture. It’s important to carefully evaluate your options before making a decision.

Ultimately, the decision to quit being an insurance agent or change to another agency should be based on a careful evaluation of your personal circumstances, goals, and preferences.

Being an insurance agent is a challenging but rewarding career path. However, many individuals who pursue this profession eventually decide to quit. Job-related stress, dissatisfaction with compensation and job security, competition, and loss of interest are some of the main reasons why people quit being insurance agents. Addressing these issues can help to improve retention rates and ensure that the insurance industry continues to attract top talent. Being an insurance agent is a challenging job that can lead to burnout. However, by taking proactive steps to manage stress and prioritize self-care, insurance agents can stop burnout and prosper in the industry. Setting realistic goals, maintaining a healthy work-life balance, prioritizing self-care, staying motivated, and building strong relationships with clients can help insurance agents to enjoy a fulfilling and rewarding career in the insurance industry.

If you’re considering a change from your current role as an insurance agent or seeking a new agency that can support your success in the industry, including a consistent generation of qualified leads, a clear pathway to managerial positions, and assistance in achieving your first Million Dollar Round Table (MDRT) qualification, we invite you to reach out for a no-obligation conversation.

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