What Are the Responsibilities of an Insurance Broker?
Finding the right insurance company and coverage can be a daunting undertaking for many people. Continue reading to learn about the ways you could assist customers as an insurance broker.
Job Duties of an Insurance Broker
As an insurance broker, you'll work on behalf of multiple insurance companies, usually in an independent capacity. You'll connect clients with the insurance company that meets their needs and offers them the best value. Depending on the customers' specifications, you could help them find the cheapest insurance or the insurance that provides the best coverage.
To determine your clients' needs, you'll gather necessary information, such as the type of insurance they need, their desired coverage and their requested deductible rates. You might also collect credit reports, as well as medical and insurance coverage histories, to ensure they qualify for a particular policy or company. You'll then obtain quotes from potential insurance companies and process applications for the clients. You'll could also make recommendations to help clients lower their insurance costs and manage policies by assisting with changes, renewals and cancellations.
As an insurance broker, you could work with both individuals and businesses. You might also represent companies selling various kinds of insurance, such as auto, life or health. Some brokers specialize in just one type of insurance.
Important Facts About Insurance Brokers
|Median Salary (2021)||$66,000|
|Key Skills||Customer focused, social nuance, critical thinking, problem solving, close listening, clear written and spoken communication, good negotiation|
|Work Environment||Predominately in-office, but field work may be required|
|Similar Occupations||Account managers, customer service agents, customer service supervisors, front office managers, insurance agents, insurance sales agents|
|Job Outlook (2019-2029)||5% growth (for all insurance sales agents)|
Sources: PayScale.com, U.S. Bureau of Labor Statistics
The type of insurance product you sell can vary greatly, from property to business to health insurance. Because selling these types of insurance can entail different sets of knowledge, you'll likely need to be trained in your specialty. For example, when selling auto insurance, you'll need to be aware of state minimum requirements and the amount of coverage needed to pay for car repairs and medical expenses in the case of an accident. Alternatively, when selling health insurance, you'll need to be familiar with various kinds of providers. Medical providers, like HMOs and PPOs, offer different types of coverage and have different coverage rules.
You can prepare for a career in insurance brokering by earning an undergraduate degree in insurance, business, economics or finance. While some employers prefer to hire college graduates, sales experience is an asset that could qualify you for a job in this field without a degree. After getting hired, you'll typically learn to sell insurance through a company training program. Company training usually involves working alongside another agent and learning on the job. Additionally, some companies encourage or require you to complete continuing education in insurance-related topics.
In all states, you must obtain a license to sell insurance. You might need more than one license if you sell multiple types of insurance products. Some states require you to complete a minimum number of training hours to be eligible for licensure. You could also need a separate broker's license in some states, particularly if you manage other brokers or agents. After obtaining a license, you might be required to renew it regularly by fulfilling continuing education requirements.