How to become An Insurance Sales Agent

Not all heroes wear capes. Insurance Sales Agents stand up to help their clients stand back up. They act as intermediaries between their clients and insurance companies to ensure that their clients get the best deal...all the time...every time.

• Insurance Agent
• Insurance Broker

What do Insurance Sales Agents do?

An Insurance Sales Agent would typically need to:

• Design and implement effective marketing strategies to sell new insurance contracts or adjust existing ones
• Contact potential clients and create rapport through networking, cold calling, and valid referrals to sell policies of all kinds: health, home, car, property damage, and life insurance
• Appraise the wishes and demands of business or individual customers before recommending and selling the most appropriate protection plans
• Collect information from clients on their risk profiles to offer proper solutions on risk management and devise new ways to mitigate risks
• Customize insurance programs to suit individual clients; help them file and receive fair financial compensation for their loss
• Arrange specialized types of insurance cover in complex cases by preparing reports for insurance underwriters and surveyors and negotiating with insurers
• Analyze current insurance policies of clients and suggest additions or other changes; handle policy renewals; fulfill all company-established policy obligations
• Offer comprehensive financial planning services, such as retirement planning, estate planning, and help in setting up pension plans for businesses, especially to clients approaching retirement
• Check insurance claims to safeguard their reputation; solidify client trust by ensuring that they understand the terms and the extent of the cover provided in line with industry regulations
• Retain continuous awareness of transactions, sales, and terms; maintain relevant paper and electronic records
• Complete administrative tasks such as paperwork and correspondence
• Develop beneficent professional relationships with underwriters, surveyors, photographers, and structural engineers

Most Insurance Sales Agents work in offices, although some may spend time traveling to meet with clients. If you work for an international firm with business overseas, you may need to travel abroad.

Dress in a neat, clean, and professional manner and your prospects will take you seriously. Wear an ID badge and perhaps a dress shirt with your company logo.

Your typical work schedule will include the usual office hours, although you may need to work some evenings or Saturdays to meet with your clients. Some Insurance Sales Agents meet with clients during business hours and then spend evenings doing paperwork and preparing presentations to prospective clients. Most agents work full-time, but part-time work is also an option.

Finding a new job might seem challenging. Job opportunities are available throughout the country, mainly in cities and large towns. Career breaks are also possible, but you will need to keep up to date with changes in the industry. Insurance Sales Agents can boost their job search by asking their network for referrals, contacting companies directly, using job search platforms, going to job fairs, leveraging social media, and inquiring at staffing agencies.

Insurance Sales Agents are generally employed by:

• Multinational Insurance Broking Firms
• Financial Advice Companies
• Niche Insurance Broking Firms
• Insurance Companies
• Insurance Risk Management Departments of Non-Insurance Companies
• Reinsurance Companies

Professional associations and organizations, such as the International Association for Insurance Professionals (IAIP), are crucial for Insurance Sales Agents interested in pursuing professional development or connecting with like-minded professionals in their industry or occupation. Membership in one or more adds value to your resume while bolstering your credentials and qualifications.

• Interaction with extensive and diverse clientele
• Pressure of deadlines

Entry without a degree is possible in a junior or trainee broker role or as an insurance technician. You can progress to the position of Insurance Sales Agent after gaining experience and insurance industry qualifications. Although employers usually provide training in insurance-related legal issues, you will need to have a good understanding of the insurance industry. If you are interested in a particular company, visit one of their recruitment events to speak to employees and determine what they do and what the company seeks in prospective employees.

Work experience with a broking house or insurance company can improve your chances of employment. Many major insurance companies have work placement or summer internship programs, but the competition for places is intense. Smaller firms may offer work experience, but you may need to approach them directly to find out about opportunities. Work experience in sales or a customer services role in the financial services sector will come in handy.

A high school diploma is a typical requirement for Insurance Sales Agents. However, a bachelor’s degree in accounting, finance, business, management, economics, or mathematics can enhance your job prospects. Lessons in public-speaking can hone sales techniques.

Typically, Insurance Sales Agents must have a location- and coverage-specific license to practice their profession. For example, a forward-looking agent would seek licenses in life & health insurance as well as property & casualty insurance. Only those applicants who complete specified courses and pass government exams covering insurance fundamentals and government insurance laws are eligible to earn a license.

As the demand for financial-planning services increases, many agents also choose to get licensed and certified to sell mutual funds, securities, variable annuities, and other financial products. Licensing and certification require a substantial number of dedicated study hours to pass an additional exam.

Voluntary certification from an objective and reputed organization can help you gain professional credibility, encourage renewal, and become an independent consultant.

Agents often specialize in one area of insurance, such as risk management, assessment, marine, household, or motor insurance. They may work in specialist departments in large companies or for small specialist firms. There is an exact career route within the profession with opportunities to move into other areas of insurance.

Insurance Sales Agents usually undergo general training and gain considerable experience before moving into specialist or management roles.

Specialist roles include Insurance Account Executive, Technical Insurance Agent, Claims Insurance Agent, New Business Executive/Manager (to find and develop new business relationships for a firm), and Sales Manager (to allocate new business once the initial client interest has been generated).

These roles may be segregated in a large company and only reached through promotion; you may, thereby, specialize in a core area. In a smaller firm, you are more likely to handle most functions, including handling new business development and acting as a claims agent.

Progression into management would entail managing a team of agents or several branches of an insurance firm. Opportunities also exist to move into related areas of work, such as underwriting or loss adjusting.

College graduates who are multilingual and have sales abilities, excellent customer service skills, a firm understanding of the relevant technical and legal terms, and expertise in a range of insurance and financial services products are likely to have the best prospects. Many fresh recruits fail to earn enough from commissions to meet their income goals. These agents may eventually transfer to other careers and leave those jobs open to other aspirants.

Although a degree may not be an essential prerequisite to becoming an Insurance Sales Agent, it may prove useful. Most employers are usually more interested in how your skills and personal attributes contribute to the role.

Structured graduate training schemes at large firms include attachments to various departments in technical and client-facing roles over around eighteen months to two years. Training usually includes courses on the technical aspects of insurance sales, while senior colleagues provide support and mentoring.

Many employers have new agents shadowing an experienced agent for the first-hand experience of conducting the company’s business and understanding how the agency interacts with clients. Changes in tax laws & regulations and government benefits programs can affect clients’ insurance needs and how agents conduct business. Employers often expect agents to keep up to date on such matters through continuing professional education courses.

Agents can enhance their selling skills and broaden their knowledge of insurance and other financial services by taking classes at colleges and universities or attending conferences and seminars sponsored by insurance organizations.

Most government and accredited licensing authorities also require agents to take continuing education courses focusing on insurance laws, consumer protection, ethics, and the technical details of various insurance policies. Insurance Sales Agents hoping to advance to a managerial position need to have sound business knowledge.

A Trustworthy Intermediary

Insurance Sales Agents contact potential customers and sell one or more types of insurance. You will act as an intermediary between your clients, who can either be individuals or commercial businesses & organizations and insurance companies; you may offer products from more than one insurer to ensure that your clients get the best deal.

Different Approaches to a Common Goal

Captive agents are Insurance Sales Agents who work exclusively for one insurance company. They can only sell policies provided by the company that employs them. Independent insurance agents work for insurance brokerages, selling the policies of several companies. They match insurance policies for their clients with the company that offers the best rate and coverage. Retail Insurance Sales Agents usually arrange insurance policies for individuals or companies and deal directly with them. Policies for individuals include motor, house, travel, or pet cover, whereas the policies for companies are likely to cover damage to property and business disruption.

Find Your Niche

Property & casualty insurance agents sell policies that protect people and businesses from financial loss resulting from automobile accidents, fire, theft, and other events that can damage property. The policies also cover workers’ compensation claims, product liability claims, or medical malpractice claims. Life insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies and annuities that promise a retirement income.

Health & long-term care insurance agents sell policies that cover medical care costs and assisted-living services for senior citizens. They also may sell dental insurance and short-term and long-term disability insurance. Commercial Insurance Sales Agents deal with high-value and more complex insurance cover in marine, aviation, oil and gas, and financial risks.

Scoping Out Works Both Ways

Potential clients often use comparison shopping tools online to learn about different policies and get information from insurance companies. Clients can either purchase a policy directly from the company’s website or contact the company to speak with a sales agent.

Insurance agents also find new clients through referrals from current clients. Keeping clients happy is the key to success as an

Insurance Sales Agent. Potential Pros & Cons of Freelancing vs. Full-Time Employment

Being a freelance Insurance Sales Agent offers freedom regarding flexible schedules, working hours, and location. They have full ownership of the business and can afford selectivity in terms of the variety of projects and clients presented. While it has unlimited earning potential, freelancing comes with less stability and security, with inconsistent work and cash flow. There is more responsibility, effort, and risk involved. There are no paid holidays, and sick/maternity/paternity leaves are almost unaffordable. There is the added pressure of a self-employment tax and no eligibility for unemployment benefits.

A full-time Insurance Sales Agent has access to company-sponsored health benefits, insurance, and retirement plans. They have job security with a fixed, reliable source of income and guidance from their bosses. Even so, they are susceptible to potential boredom and inability to pursue passion projects due to their lack of time or effort. With a lack of flexibility, ownership, and variety, there is also a need to budget extra money for commuting and attire costs.

When deciding between freelancing or being a full-time employee, consider the pros and cons to see what works best for you.

During the early 19th century, movie-goers were so scared of dying due to excessive laughter that they bought insurance through Lloyd’s of London

A disaster can strike anywhere and at any time - that is why everyone needs a great insurance agent to sell them what insurance can do.

Selling insurance is hard, hard work. Insurance agents you see with big houses and nice cars playing golf around the world didn’t get there overnight. They sold and sold and sold. And sold more. It’s the only way to become super successful in this business, and if you want to be successful, you’re going to have to do it too.