Many insurance professionals choose to become agents because they find helping individuals protect their well-being to be very fulfilling. They also enjoy the flexibility that the job offers as you can choose where and how often you work. The first step to determine if becoming an insurance agent is a good option for you is to learn about the steps to get there. Agents are responsible for developing strategies to promote different insurance types to assess each client’s unique coverage needs. With such a wide scope of risk, consider the importance of CA E&O Insurance, so you are properly protected. Typically, agents will specialize in a specific kind of insurance, such as health, property, disability, casualty, or long-term care. It is also common for agents to set up investment or pension plans for their clients.
Types of Insurance Agents
The two types of insurance agents:
Captive agents
- Sells to a specific company
- Strong brand recognition to the public
- Back-office advantages
- Streamlined processes
- In-depth underwriting knowledge
- Can be challenging if the company does not have competitive rates
Independent agents
- Sells to multiple companies
- Looks at different rates at different companies to compare options
- Often referred to as a broker
- Represents the client, not the carrier
- Normally a small business owner with limited resources
The salary for insurance agents varies depending on what industry the agent is working in as well as the geographic location. Those working for direct health and medical insurance carriers typically make more than their counterpatrs.
The Requirements and Steps to Become an Agent
The minimum requirement to become an agent is a high school diploma or GED and an insurance license from your state. Licensing requirements vary from each state. However, you are typically required to take a course and pass the state’s licensing exam. Each type of insurance sold will require a specific license. Therefore if you sell multiple kinds of insurance, you must hold multiple licenses. For example, selling health and life insurance calls for two different licenses.
The following are the basic steps to become an insurance agent:
Earn a bachelor’s degree
Although it is not technically a requirement, you will be able to sell to companies much easier if you have a college degree. With a degree in business, economics, or finance, you will likely be more effective in selling insurance products. Studying marketing or psychology can also be beneficial in promoting and selling products.
You may even be able to find insurance or risk management courses to learn about insurance theory, security analysis, and the basic principles of risk management. This knowledge would be especially helpful if you want to become an underwriter.
Complete Licensing Requirements
Not only will you have to obtain a license for each category in which you plan to sell policies, but you are also likely required to complete class training or conduct a self-study for a set number of hours. Be prepared to give fingerprints and submit background check information.
Obtaining licensure
You will be required to pass a licensing exam to verify your knowledge of state insurance laws and insurance concepts specific to the insurance category you’ll sell. Depending on the type, a securities registration may be mandated.
Pursue a job
Independent agents working in an office with other agents may receive on-the-job training and be able to learn from more experienced agents before looking for their own clients. Captive agents should consider pursuing a position with a specific insurance company.
Employment for insurance agents is projected to grow and significantly faster than the average for other occupations.
About IPRO Agency Insurance Services
IPRO Agency Insurance Services is a specialty insurance brokerage with the expertise to protect your firm, assets and to help you retain clients. Our services offer all types of professionals the protection they need so they can stay committed to their work with ease. We are connected with leading insurers to bring you the best coverage for your unique needs and areas of risk. Get in touch with us at 888- 673-8039 so we can begin to safeguard your success.
