How to become one of the best insurance brokers
There are many different types of insurance brokers. These individuals work in various fields and are sometimes called insurance agents. Insurance brokers bring in new business for insurance companies. They also explain insurance policies to their clients and help clients select the right policies. You will be helping businesses and individuals makeinsurance buying decisions. Insurance brokers can sell car insurance, home insurance, business insurance, health insurance, life insurance and many other types of insurance.
According to the United States Department of Labor, the median yearly pay for insurance agents in 2010 was $46,770.00The median hourly pay was $22.48 per hour. It is very important to know that most insurance brokers do not work for insurance companies.
Most brokers work on behalf of the insured. There are brokers that do work for insurance companies. Brokers receive commissions when clients sign up for insurance coverage and make monthly payments. Here is a closer look at what to do if you want to become an insurance broker.
You should earn a high school diploma or a general equivalency diploma. Insurance agents need good listening skills to communicate effectively between the insurance companies and their clients. Agents also need reliable transportation and they have to score a passing grade on state insurance examinations.
If you want to become an insurance broker, you should definitely keep in mind that a large number of agents have bachelor's degrees. Most employers will hire persons with degrees and work experience in the field. However, companies are now adopting new ways to hire insurance agents. Insurance companies are asking applicants to complete surveys as a part of the interviewing process.
To become asuccessful insurance broker, you will need training. Employers will assist entry level agents by offering on the job training. It is common in corporations for the experienced agent to train the entry level agent. If you are really serious about succeeding, volunteer to work as an insurance broker for at least three months at an insurance company.
Insurance brokers must hold a license in each state where they sell insurance. For example, if you sell car insurance in Florida and Georgia, you must have a license in both states. Brokers will need to get a separate license if they sell different types of insurance in some states. Make sure you follow your state's insurance department laws and rules. State licensing boards requires brokers to complete continuing education courses.
The American Institute for Chartered Property and Casualty Underwritersis an organization that offers certifications in the insurance industry. Brokers can find information about becoming certified in areas such as risk management, claims, underwriting, general insurance, and over 20 other programs.
Clearly, there are many opportunities for advancement in the insurance brokerage industry. Brokers need to know that it is extremely important that they develop a client base by calling hundreds of potential clients every month. Some agents start their own small business and other agents become chief executives of Fortune 500 Companies. Of course, some insurance brokers make enough money to provide for their families and help others.
