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MLEA Distribution Recruiting Dips, but Is the Sky Falling?

Author

Kathleen E. Krozel, LLIF, FLMI, ARP
Research Director, Distribution Research
LIMRA and LOMA
kkrozel@limra.com

August 2025

In the classic European folktale Chicken Little, a young chicken mistakenly concludes that the sky is falling after being struck by an acorn — an overreaction that mirrors some of the doom-laden narratives we hear in our industry. Concerns about the shrinking size of the sales force, a looming wave of retirements, and limited engagement from younger talent are often raised. But how grounded are these concerns in reality? To make informed strategic decisions, it’s essential that we examine the data from multiple perspectives to gain a clearer understanding of the trends.

The Acorn: A Recruiting Decline

Recruiting levels within multiple-line exclusive agent (MLEA) distribution channels have experienced a clear and sustained decline over the past decade. Among a constant group of 10 companies, the number of recruits decreased by 56 percent between 2014 and 2024, with the most pronounced decline occurring after 2021.

Figure 1. Industry Risk Rating

MLEA Recruiting Trend



While this downward trend may raise valid concerns, further analysis reveals several contextual factors to consider:

  • To what extent are a few large companies disproportionately influencing the overall trend?
  • How is the age profile of the field force evolving, and what does the age distribution of new recruits reveal?
  • Is there a strategic shift toward prioritizing quality over quantity in recruiting, and could improved agent retention mitigate the impact of lower recruiting levels?
  • Does the rising number of subagents represent an untapped opportunity for expanding the talent pipeline?

Let’s take a closer look at these questions.

First, are there several large companies influencing the trend? To a significant extent, yes. In 2024, the top four recruiting companies accounted for 78 percent of total MLEA recruits. Each of these companies reported lower recruiting levels in 2024 compared to 2014, with declines ranging from 13 percent to as much as 72 percent. This high concentration of recruiting activity among a small number of companies suggests that overall trends are heavily influenced by the strategic decisions and performance of a few key players.

Next, is the field force really aging? The average age of principal agents in 2024 was 48, only slightly higher than in 2013. Similarly, the proportion of agents aged 55 and older (29 percent) remained stable over that period. However, a notable shift occurred among younger agents: the percentage of those under age 35 has declined from 19 percent to 13 percent. Low recruiting rates in MLEA distribution, which have historically hovered around 10 percent of the base force and in recent years have dropped further to just 5 percent, limit the influx of younger talent. Additionally, new recruits span a wide age range. About a third of new hires are under 35, but another third are aged 45 and over, further contributing to the effect.

Figure 2. Distribution of Principal Agents by Age

Filter the data in this chart by clicking on a color bar in the chart legend.

Third, is quality being prioritized over quantity? The high cost of turnover has prompted many companies to adopt a more selective approach to recruiting. Between 2021 and 2023, a group of nine companies reduced their recruiting by 34 percent. However, this decline was accompanied by better retention: agent turnover rates dropped from 7.2 percent to 4.5 percent, and four-year retention increased from 51 percent to 55 percent. As a result, overall field force size remained stable despite the slowdown in new hires.

The shift toward quality is also reflected in evolving expectations around agent qualifications. For instance, one MLEA company revised its recruiting strategy to require agents to obtain securities licenses (Series 6, 63 or 65) either before or shortly after contracting. While this change narrowed the candidate pool, it aligned with a broader emphasis on holistic financial planning and elevated professional standards.

Finally, what effect has the rising number of subagents had?

MLEA companies reported 3,669 subagent recruits in 2024, double the number reported in 2016, when LIMRA first began tracking this data. While subagents serve in a variety of roles, including support or servicing functions, the position offers valuable exposure to the profession and may serve as a potential pathway to becoming a principal agent. Subagent recruiting has also contributed to increased diversity. In 2024, women accounted for 65 percent of subagent recruits, compared to just 32 percent among principal agent recruits.

Conclusion

While the sky may not be falling, persistent recruiting shortfalls — if left unaddressed — will inevitably lead to a contraction of the field force, even with improved retention. Sustained growth and long-term viability of the channel will depend on the ability to engage younger talent and build a robust pipeline of future sales professionals.

Expanding and formalizing alternative entry pathways, such as the subagent role, presents a strategic opportunity to attract a more diverse and next-generation sales force, including women and Gen Z candidates. At the same time, a continued emphasis on quality — through enhanced professional standards and a focus on holistic financial planning — will strengthen both the industry’s reputation and the value delivered to consumers.

Kendra Walz contributed to this article.

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