The last general meeting of Agéa was an opportunity for the national federation of general agent unions to present the first economic observatory of the profession. The latter notably establishes the typical profiles of the AGAs, their agencies or their market segments as well as their growth prospects. Above all, it makes it possible to make certain figures delivered by the principals lie.
“Campaign promise” by Pascal Chapelon, the president of Agéa, the national federation of general agent unions has just delivered the results of its first Economic Observatory of general agents. Based on existing figures (Cavamac / Praga / CGPA / Insee) and the declarations of 1,700 agents, Agéa has thus drawn up a precise map of the profession, whether it is the AGAs themselves, their agencies , their mode and places of exercise or even the sectors of activity and the customers they address on a daily basis. The Observatory has also looked into the outlook and levers for growth in the profession against the backdrop of the idea of being able to “master the economic elements of our agencies in order to be able to adjust our subjects, our work and our files in the face of our principal companies which sometimes put forward different figures”explains Pascal Chapelon.
In detail, this economic mapping of agents first reveals several characteristics on the typical profile of the 11,900 AGAs (including 2,000 specialized in life) in the territory. With an average age of 49, one agent in five is a woman. New agents, for their part, enter the profession at the age of 40 with a proportion of women which stands at 1/3 (against 1/6 in 2005). “When a young agent enters and only stays 6 to 7 years in the profession, the time to repay his bank loan, this has an impact on the sustainability of our pension funds and on the longevity of our reserves”warns the president of Agéa who observes that it now takes 10 years on average to renew an entire network.
The end of the EIRL
On the business side, the Observatory tells us that 2/3 of agents’ clients are private individuals for 54% of their commissions. Each agent now has 2.3 contracts per individual customer (for an average termination rate of 13.1%) and 3.2 contracts per professional customer (for a termination rate of 9.2%).
Agéa notes that property and casualty now accounts for 78% of agents’ commissions, compared to 17% for life insurance and 4.2% for brokerage. “Contrary to popular belief, you can see that we are far from being the ugly brokers who make companies miserable”jokes Pascal Chapelon.
Regarding the modes of exercise of the profession and the typology of agencies, the Observatory highlights that 65% of agents work individually, while only 11% of AGA work in 3 or more. We also learn that 60.2% of agencies operate under the legal status of sole proprietorship, against 22.4% in EIRL, 13.2% in SARL and 4.2% in EURL. “The disappearance of the EIRL has consequences that should not be overlooked, particularly on tax matters and the amortization of charges for young agents”then comments Pascal Chapelon.
A growing profession
With an average turnover of 505,000 euros per agency and an average total annual remuneration (before tax) of 112,000 euros, AGAs have an average of 3.8 employees (up 7.5% over the last 3 years). The Observatory also specifies that specialized life agents record an average turnover of 120,000 euros for an average total annual remuneration (before taxes) of 61,000 euros.
Above all, Agéa delivers agents’ 3-year outlook and growth levers. “AGAs are very mature in analyzing the evolution of their turnover”, insists the president of the federation. Thus, we learn that 40% of agencies expect strong, even very strong growth over the next three years. 25% also envisage growth in their income on the professional market (compared to 5% for the private market). Finally, they are 47% to want to recruit, 61% to want to train and 18% to want to acquire an additional portfolio, when 17% of agents indicate that they want to engage in an association project.