An insurance agent is a professional usually employed by an insurance company to sell insurance policies to new clients and upsell to existing clients. He/she assists clients in choosing the right insurance policies that meet the client’s coverage needs, risk tolerances, and budget. The type of insurance can vary from auto, home, umbrella, RV, to boat for personal and commercial insurance (for businesses). Insurance applies to health, disability, life, long-term care, etc. Though all of these fall under insurance, typically, these are considered specializations.
Education and Qualifications
There are no specific educational qualifications to become an insurance agent. But most have a bachelor’s degree; though a specific major is not required, business, finance, or economics-related majors will help.
Licensing requirements vary by state, but most states have a course/exam before one can apply for the license. And there are continuing education and license renewals as well.
Responsibilities and a Day in the Life
Most insurance agents work a regular schedule of 8 hours a day and five days a week. But like any other profession, the actual hours may vary depending on the team size and customer base; some customers may only be available after office hours or on weekends. Some agents are flexible to meet these customer schedules to win their business and improve customer satisfaction.
Though daily responsibilities vary based on many factors; some of the common ones are include the following:
- Developing and implementing marketing strategies to get new customers.
- Compiling a list of potential customers and cold-calling them.
- Listening to customers to understand their needs, risk tolerance, etc.
- Educating customers on various insurance options available and recommending suitable policies.
- Building and maintaining relationships with current customers and suggesting changes to win more business.
- Providing continuing service by reassessing client needs and processing changes requested by them.
- Maintaining insurance documents and other customer-related details in a secure system.
- Maintaining proper bookkeeping
- Monitoring insurance claims submitted by the clients and ensuring mutual satisfaction.
- Communicating with insurance adjusters.
- Fulfilling policy requirements and completing required paperwork promptly.
- Constantly learning about new products and services, competition, etc.
- Maintaining personal and professional networks; participating in seminars, conferences, and professional organizations.
Other Necessary Skills
- Listening skills
- Excellent interpersonal and sales skills
- Superior written and verbal communication skills
- Strong computer knowledge and statistical analysis
- Organizational skills
- Attention to detail
Salary
- Salary can vary based on company, experience, location, etc. According to BLS, the median salary for an insurance agent is about $50K. Traditionally, an insurance agency is considered a local business; compensation for these businesses can vary based on the number of years in service, number of clients, etc.
Job Growth
According to the U.S. Bureau of Labor Statistics, there were about…
- 523K agents in 2021
- The job outlook from 2021 to 2031 is 6% which is on par with the average job growth.
- Employment change 33K (2021 to 31)
Summary
If you are someone who finds the following characteristics appealing or facile, you can consider being an insurance agent as your future career:
- Cold-calling for new customers
- Working with people and building long-term relationships with customers
- Listening to others and especially their complaints, specifically when dealing with claims.
