Insurance Broker - Job Description, Salary, Education and Career Guide for Becoming an Insurance Broker

Jobs in the insurance industry have excellent income potentials. In a changing economic climate, insurance products can provide protection against financial losses resulting from various causes. A good insurance broker will be sales-driven and client-focused. Knowing how to match the right insurance products with a client’s needs is the key to success.

Job Description

The main focus of an insurance broker is selling a product to protect a party from loss. The party buying insurance, the insured, pays a small price, referred to as the premium,) to protect against a large loss.
 
Depending on the type of insurance they sell, insurance brokers may work independently, through a bank or through a securities firm. The nature of an insurance broker's job varies greatly depending on the type of insurance they sell. Some insurance brokers sell a combination of the following types of insurance:
  • auto
  • business
  • disability
  • health
  • home
  • life.
 
Insurance sales agents work for one insurance agency, whereas insurance brokers sell products and policies through many different agencies. Some of the day-to-day tasks of your job as an insurance broker may include:
  • acquiring new clients
  • advising clients when they need to make a claim
  • assessing clients’ insurance needs
  • collecting and processing insurance premiums
  • keeping detailed records and preparing reports
  • keeping up with changes in the insurance industry
  • maintaining relationships with clients
  • negotiating policies with underwriters.
 

Salary Guide

According to the United States Bureau of Labor Statistics, the median salary for an insurance broker is $43,870.
 
Depending on what types of insurance products you sell, and where you work, your expected salary as an insurance broker varies greatly. If you become an independent insurance broker, you will probably be paid a commission on the products you sell. If you are an employee of an agency, you may be paid a salary, a salary and a commission or a salary with a bonus structure based on earnings.
 
Insurance carriers often pay for their agent’s automobile transportation expenses and also offer attractive benefits packages. You may also be offered yearly bonuses, retirement plans, your own insurance and paid time off.

Education and Training

Insurance brokers selling any type of insurance product must be licensed, which usually requires completing education requirements and passing an exam. For information on licensing information, visit your state’s insurance department Web site.
 
Companies and agencies prefer to hire college graduates, although a college degree is not usually required. A college education, especially in business or economics, helps brokers understand the many technical aspects of the insurance industry. In the absence of a college education, a person with a high school diploma may be hired if they can demonstrate proven sales experience and excellent communication skills. Knowledge of computers is also important, as the insurance industry today relies heavily on technology and the Internet.
 
If you are currently enrolled at a college or university, you may be eligible to take part in an internship opportunity at an insurance company or agency. Ask your career services advisor if opportunities are available.

Prior Work Experience

Prior experience in the insurance industry or in sales will be valuable for new insurance brokers and sales agents. Insurance brokers should have excellent communication skills and be comfortable explaining the technical and financial aspects of insurance products.

Career Advancement

Successful insurance brokers may advance to managerial positions or field sales within an insurance company. Depending on the type of insurance broker you become and the company you work for, your advancement opportunities will vary. You may also be eligible for insurance underwriter or actuary positions. If you work for a national company, relocation may be required for some career advancement positions.
 
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