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Insurance agents are sales agents who sell a variety of types of insurance to clients. The insurance agent may work for a large company, selling its products, or as an independent broker. There are several steps you must take to begin working as an insurance agent or broker. Read on to learn how to become an insurance agent.
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Tips on Becoming an Insurance Agent
- Consider obtaining a bachelor's degree in an insurance-related field, like general business or finance
- Insurance-specific courses are offered at some colleges
- Find out the specific license requirements for the state where you wish to work
- Obtain the necessary licenses
- Decide if you want to work for an insurance agency or strike out on your own as an independent insurance broker
- Send out resumes; include your licensing certification and any insurance-related experience you may have
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Managed Since: 06/02/2009
Views: 900
Money Earned: M$29.67
Page revenue is subject to change as we obtain data from our partners
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Introduction
- To become an insurance agent, you must either have a bachelor's degree or previous experience in the insurance field and be licensed as an agent. Recommended courses and licensing procedures for insurance agents are outlined below.
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What Do Insurance Agents Do?
- Insurance agents sell insurance policies to individuals and businesses. Agents can sell many types of insurance policies, from life and health insurance to automobile or property insurance. An insurance agent typically works for an insurance company, selling that particular company's products. Insurance agents who work independently are called insurance brokers; they may represent more than one company. In addition to selling policies, insurance agents may also settle claims and prepare reports on clients.
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What Will You Earn?
- Salaries for insurance agents vary from state to state. They also depend greatly on the type of insurance you are selling and your own abilities.
- According to the U.S. Bureau of Labor Statistics, salaries for insurance agents ranged from $25,230 to $113,190 as of May 2007.Bureau of Labor Statistics: ...Employment and Wages...
- According to CNN Money's salary wizard, as of March 2009 the average annual pay for an insurance agent ranged from $35,824 to $53,439.Salary Wizard: Insurance Agent
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Step 1: Education
- While many insurance agencies prefer that you have a bachelor's degree, a formal education is not always required to become an insurance agent.Bureau of Labor Statistics: Training, Other Qualifications and Advancement Prospective insurance agents who wish to obtain a four-year degree should take courses that will help them understand the fundamentals of the insurance industry, including:
- General business
- Economics
- Finance
- Accounting
- Business law
- Marketing
- Some schools offer specific courses in insurance, including:
- Risk management
- Life insurance
- Property and casualty insurance
- Personal insurance planningThe Belk College of Business: Risk Management & Insurance Curriculum
- Some companies will hire you without a bachelor's degree if you have previous experience in the insurance field, or if you have a strong sales or managerial background.
Step 2: Licensing
- All U.S. states require insurance agents to be licensed, though specific requirements to obtain a license vary between states. There are no uniform licensing standards for the insurance industry; you will need to check with the individual states to find out their licensing requirements. The National Association of Insurance Commissioners (NAIC) offers an online map with links to all state insurance departments. Specific licenses are issued based on the type of insurance an agent will sell, including:
- Health insurance
- Life insurance
- Property and casualty insurance
- Automobile insurance
- Liability insurance
Selling Securities
- Some insurance agents choose to pursue selling securities. Rigorous exams are necessary to obtain licensing to sell securities. Such exams are administered by the Financial Industry Regulator Authority (FINRA).
- The Series 6 is the Investment Company Products/Variable Contracts Representative licensing exam. It is given to those insurance agents who wish to sell:
- The Series 7 is the General Securities Representative Examination. The exam qualifies insurance agents as general securities sales representatives.FINRA: What is the difference between the Series 7 and Series 62 Examinations?
Step 3: Find a Job
- Once you have completed your education and obtained the necessary certification exams to become a licensed insurance agent, it is time to find a job! According to the U.S. Bureau of Labor Statistics, the job outlook for insurance agents is favorable—employment of insurance agents is expected to increase by 13% through 2016.Bureau of Labor Statistics: Job Outlook
- Decide where you want to work. Insurance agents:
- Can work for major insurance companies or smaller, local agencies
- Can work independently, as insurance brokers
- For information about the best insurance companies, consult insurance company ratings sites, including:
- Standard & Poor's
- A.M. Best
- Moody's
- Once you have selected insurance companies you may want to work for, prepare a resume and include:
- Information about your education
- Did you obtain a bachelor's degree?
- Did you take any related courses in college to gain knowledge about the insurance industry?
- All licenses you have obtained and all exams and coursework you completed to obtain those licenses
- Any previous sales experience you may have
- Check out Mahalo's How to Write a Resume page for great tips on how to make your resume first-rate.
- Once you have your resume in-hand, it is time to send it out. Not sure where to start? Many insurance companies offer job listings directly on their websites. You may also want to search other Internet job websites like Monster.com and Careerbuilder.com.
Step 4: Build Your Career
- Insurance agents are salespeople, and as such need strong communications skills to build and support a client base. Good ways to do this include:
- Networking, with other insurance agents and potential clients
- Handing out business cards at social and business functions
- Joining the local Chamber of Commerce
- Patience is a key here; if you offer great services, you'll earn a great reputation and your client list will grow.
Continuing Education
- Most licensed insurance agents are required to complete continuing education courses to renew their licenses. These courses help agents stay updated on current issues and learn about emerging trends in the insurance industry. Many continuing education courses are offered through professional organizations:
- The Independent Insurance Agents & Brokers of America offers extensive continuing education courses.Independent Insurance Agents & Brokers of America: Supplement Your Designation Expertise
- The National Association of Insurance Commissioners also offers continuing education courses and professional seminars.National Association of Insurance Commissioners: NAIC Education and Training Department
Conclusion
- Insurance agents are highly skilled sales people, first and foremost. They sell a variety of types of insurance, including life, health, automotive, property and casualty insurance. Do you have the ability to inspire customer confidence? Are you disciplined and willing to work hard to build a good client base? If so, you have many of the qualities needed to embark on a promising career as an insurance agent.
