Increasing Agent Retention: A Leadership-Driven Approach

Written by: Jim Kee , master trainer for LIMRA and LOMA

February 2025

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The life insurance industry’s four-year retention rate is a critical statistic. However, whenever I ask my course participants about this rate, I only see blank faces.

Here’s the industry’s four-year retention rate from my experience working with agency leaders across Asia, covering Singapore, China, Malaysia, Thailand, Vietnam, Indonesia and the Philippines:

• Year One — 70%
• Year Two — 30%
• Year Three — 60%
• Year Four — 70%

Assuming a company recruited 100 agents four years ago, 70 remain after one year. Thirty percent of the 70, or 21 agents, are still there at the end of the second year. Sixty percent of the 21 agents, about 13, remain at the end of the third year. Finally, by the end of the fourth year, 70 percent of the 13 agents, about 9, are still in force. Thus, the four-year retention rate is 9 percent in this example.

These rates may vary in different markets and organizations, as well as in their districts and agencies. The differences all boil down to one thing: leadership.

Let’s look closely at factors influencing retention rates in each year:

Year One — Absence of a Quality Recruitment System

From my personal observation, approximately 80 percent of managers today are “producer managers.” These are producers who became managers after gaining some early sales success. Many lack the necessary skills to recruit effectively, adding team members without considering qualifications.

Year Two — Lack of a Quality Training System, Specifically Prospecting and Market Development

Most new agents initially sell to their natural markets: close friends and relatives. Once they reach out to them, they often ...

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