An insurance broker is an intermediary who sells, requests, or negotiates insurance on behalf of a client to obtain compensation. Insurance is something that provides financial protection and coverage in the event of an adverse event. Many people need insurance coverage and depend on their policies for a variety of reasons, including for their medical needs and to protect their assets and possessions. Selling insurance to customers is a potential career path that many people are interested in pursuing. People who sell insurance are often referred to as insurance agents or brokers.
Many focus on individual policies and needs, although some offer insurance products to business customers. A commercial agent could sell liability and property damage policies, as well as executive and employee coverage. Insurance agents can also work with companies to provide coverage to employees. Many insurance agents work for independent firms and brokerage agencies, selling the products of several insurance companies and providers. A smaller part of the agents are self-employed, while the rest work to get individual insurance companies to sell their products.
Some agents earn a salary, but most work on a commission basis. A commission-based sales position requires an agent to spend their time developing relationships and looking for leads. Many insurance agents set their work schedules, which provides flexibility. If you don't want to work traditional business hours or have other responsibilities that dictate your need for a more flexible working schedule, the idea of setting your schedule is probably quite appealing. Insurance agents can also work from home for at least part of the time, though they often meet with clients and prospects in person.
Those in-person meetings will generally take place in an office environment. Since many insurance sales agents earn commission-based income, the revenue potential is considerable. Your earning potential depends on your work ethic and your willingness to move forward to build relationships and sell insurance products to customers. In addition, insurance agents can maintain a passive income stream from policy renewals. Insurance is something that everyone needs and can provide protection in the event of an adverse situation, such as the premature death of a person or a natural disaster that causes significant damage to property. By selling insurance to individuals, agents have the opportunity to provide great benefit to their customers.
Health insurance can provide a cushion for health expenses and medical treatments, while auto and home insurance protects these valuable and necessary possessions. Life insurance is also beneficial because it can provide funds to a person's family members after their death. Insurance vendors must pass a state licensing exam, but there are few other barriers to entry. This position does not require a college degree, although some companies may prefer it. Prior experience is not a requirement, as most agents learn while on the job and through training. Many insurance agents are independent contractors, which means they don't qualify for base salaries.
Even those who earn a base salary must supplement their income with commissions, which are paid based on sales and the achievement of certain quotas and goals. For some people, the idea of earning commissions is attractive. For others, it can cause stress and worry about their future financial situation. New insurance agents often work long hours to build and strengthen relationships and get their names out in the industry. Even those who do qualify for a base salary may be subject to a strict sales quota.
Before starting a career in insurance sales, make sure you understand the compensation structure and what to expect. Like many sales-focused career opportunities, selling insurance is a fast-paced career that requires focus and determination. Many potential customers will say no or lose interest in the products you sell, and they can choose another agent's offers instead of what you can offer. As an insurance sales agent, you need certain skills to succeed, including perseverance, the ability to be told no, and a positive attitude. Because many insurance sales agents are independent contractors, they don't always have all the benefits.
One of the downsides of working in insurance sales is limited paid time off. This is especially the case if you own your own business. Taking time off takes time away from your ability to build relationships and look for leads, so it can be difficult to do so, especially when you're starting your career. An insurance agent must interact with people from different locations and backgrounds. Some people are friendly and easy to interact with, while others are more challenging, especially in a sales environment. You may encounter people who are not willing to recognize their mortality or the risks associated with human life.
They may not have an interest in insurance coverage. Some of the people you interact with may treat you with disrespect or disdain. People's strong skills and an impermeable nature are essential in this race. Strong customer service skills are important to agent success. If you have customer service experience, you may be ahead of those who haven't directly interacted with customers.
You can also take educational courses to learn more about customer service and what customers expect from you. Even when you're working on your own as a business owner or independent contractor, you need a team to support you. Look for people with whom you can network and build relationships, such as those in the industry or educators who work with new and aspiring insurance sales agents. When you don't go to the office every day, it can be tempting to dress casually and comfortably. However, when meeting with clients, it's important to dress professionally to make a good first impression when you can relate to them. The Job Outlook tab describes the factors that affect the growth or decline of employment in the occupation and, in some cases, describes the relationship between the number of job seekers and the number of job offers when it comes to becoming an insurance agent.
Selling insurance involves selling several types of policies including home life health auto etc., so it's important for aspiring agents understand what they're getting into before starting this career path. The potential revenue from this profession is considerable since many agents earn commission-based income depending on their work ethic; however there are some downsides such as limited paid time off if one owns their own business or works as an independent contractor. In order for an agent to succeed they must possess certain skills such as perseverance being able to handle rejection having strong customer service skills networking abilities etc. It's also important for them dress professionally when meeting with clients so they make good first impressions. Overall becoming an insurance agent has its pros cons but if one has what it takes then this could be an excellent career path for them.