Insurance Agent Job Description, Skills, and Salary
Get to know about the duties, responsibilities, qualifications, and skills requirements of an insurance agent. Feel free to use our insurance agent job description template to produce your own. We also provide you with information about the salary you can earn as an insurance agent.
Who is an Insurance Agent?
Insurance agents educate customers about the various types of insurance policies available and assist them in selecting the policies that are best suited to their needs. Agents for health and long-term care insurance sell policies that cover medical expenses and the cost of assisted-living services in retirement. Additionally, they may sell short- and long-term disability, vision, and dental insurance. Agents for property and casualty insurance sell policies that protect against financial loss caused by automobile accidents, theft, fire, and other property-damaging events. Certain agents who specialize in casualty insurance also sell workers’ compensation and medical malpractice insurance.
Insurance agents are salespeople who specialize in the sale of insurance policies. Agents are responsible for developing strategies to promote various types of insurance, evaluating the needs of a business or individual and proposing insurance plans that meet those needs, and developing relationships with clients to expand their client base. The majority of agents focus on a particular type of insurance, such as health, property, disability, casualty, or long-term care.
Numerous insurance agents also diversify their revenue streams by providing financial planning services to clients who are preparing for retirement or are interested in setting up investment or pension plans.
Insurance agents can be classified according to the type of insurance they sell and their affiliation with the companies that underwrite the policies they sell. Agents frequently concentrate their efforts on a single type of insurance, such as homeowners insurance, life insurance, auto insurance, or health insurance. While some agents work for a single insurer, others sell products from multiple companies or are hired by insurance buyers to shop for policies on their behalf. Additionally, agents are increasingly divided into those who work as part of large agent pools and those who work primarily as independent contractors.
Each type of insurance product is distinct in its way. Due to the division of insurance into distinct types, it is advantageous for an agent to specialize in one or two specific types of insurance coverage. Health insurance is a particularly complicated product, and agents who sell it are likely to specialize. Agents in smaller communities or agencies are more likely to sell a variety of products, as specialization makes less sense in those environments. All agents can sell secondary products, such as annuities or other investments.
A critical distinction among various types of insurance agents is their relationship with the corporations that insure the policies they sell. Certain agents maintain exclusive relationships with a single company. While these agents may have access to discounted rates, they are limited in the products they can sell.
Independent insurance agents earn their living by selling insurance from a variety of different companies. Due to their affiliation with multiple companies, they can provide competitive quotes from a variety of different insurance providers. This typically results in a broader selection of products available to independent agents’ clients. However, such agents must devote additional time and effort to learning the specifics of products from a variety of different firms.
Insurance Agent Job Description
Below are the insurance agent job description examples you can use to develop your resume or write an insurance agent job description for your employee. Employers can also use it to sieve out job seekers when choosing candidates for interviews.
The duties and responsibilities of an insurance agent include the following:
- Contacting prospective customers to inquire about their current policies, and they are added to their customer base.
- Conducting interviews with prospective clients to ascertain their financial situation and the coverage they require
- Analyzing customer policies and needs and making recommendations for policy changes or additions
- Customizing insurance programs to meet the specific needs of each client
- Keeping electronic and paper records, as well as managing all policy renewals
- Assisting policyholders in resolving claims
- Developing a collaborative relationship with prospective clients who come to you through a variety of channels, including networking, cold calling, and referrals.
- Distributing policy proceeds following the submission and approval of a claim.
- Recommending risk management strategies that are appropriate for the clients’ unique risk profiles.
- Preparing and presenting detailed reports to management on the status of initiatives.
- Completing administrative tasks such as record keeping and policy renewals.
- Maintaining an audit trail of insurance claims to ensure both client and company satisfaction.
- Describing the benefits and drawbacks of various policies to increase insurance sales.
- Developing and executing marketing strategies to compete against other individuals or insurance companies.
- Developing relationships with prospective customers
- Educating customers on the various types of insurance coverage and recommendations should be made based on their specific needs.
- Evaluating current insurance policies and making appropriate recommendations for additional coverage.
- Maintaining the confidentiality of all insurance documents.
Other important tasks include the following:
- Obtaining Prospective Leads
As a commission-based salesperson, the insurance agent’s primary responsibility is to generate insurance leads. Insurance agents may be responsible for placing advertisements in local newspapers and on websites, attending community events, making cold calls, and purchasing contact lists. Contacts from social media platforms can be used to cultivate leads and boost visibility. After obtaining prospects’ names and phone numbers, you contact them to discuss their insurance needs or to arrange a face-to-face meeting.
- Client Interviews
The insurance agent job description emphasizes the importance of providing superior customer service. An insurance agent will ask questions and listen to the prospect’s needs during the initial phone conversation or meeting. You attempt to ascertain the buyer’s situation to determine which insurance types and policy terms make the most sense. The basic items discussed during this initial meeting include coverage requirements, amounts, payment preferences, and budget.
- Insurance Product Distribution
As with other sales professionals, insurance agents must be adept at the art of persuasion. Once you’ve ascertained a prospect’s needs, you can review product options to determine the best fit. You then provide the prospect with a recommendation. While attempting to influence the prospect, it is critical to maintain a long-term perspective. Numerous insurance agents sell a large number of policies in the hope of retaining new customers, including annual policy renewals. This requires candor and a customer-focused attitude.
Qualifications
Education
While employers will consider candidates with only a high school diploma or GED and demonstrated sales experience, many prefer candidates with at least a bachelor’s degree. Finance, economics, and business are all excellent areas of study for an aspiring insurance agent. Some colleges and universities offer insurance courses, and several schools even offer insurance majors and minors.
Regardless of the degree pursued, courses in communication, psychology, sociology, economics, business administration, finance, and accounting will help prepare the aspiring agent for employment in the insurance industry.
In most cases, training agents receive on-the-job training from a more experienced agent. Through mentorship, new agents develop the skills and experience necessary to sell insurance successfully. They gain knowledge of how to write insurance policies, communicate with current and prospective clients, generate new business, and manage their businesses.
After completing their initial on-the-job training, insurance agents must continue to stay current on critical industry issues. They must be informed of changes in government programs, laws, and regulations that may affect their customers’ policies. As a result, agents must engage in continuing education activities such as forums and seminars, as well as read industry publications.
Licenses and certifications
While certifications are generally voluntary, each state has its licensing requirements, and agents must be licensed in their home state.
- Life and Health Insurance licenses
Health insurance agents are generally required to complete pre-licensing courses and then pass a licensing exam, depending on the state. Nonetheless, some states waive the pre-licensing course requirement for candidates with a bachelor’s degree. Aspiring insurance agents should always contact their state’s licensing department to ensure they are fully aware of their state’s licensing requirements. Following the application and approval of a license, agents may be required to complete continuing education courses to maintain or renew the license.
- Property and Casualty Agent license
This license entitles an agent to sell homeowners, auto, and business insurance to both businesses and individuals. Additionally, they may sell a variety of subtypes of insurance, such as workers’ compensation, professional liability, renters’, commercial property, and commercial general liability. To become a licensed property and casualty agent, you must typically pass a general knowledge exam. Exams are typically timed and consist of a series of multiple-choice questions. State requirements vary. After passing the exam, prospective agents must be fingerprinted, have a background check conducted, and apply for a license with their state’s licensing provider.
Certified Insurance Counselor (CIC)
This professional certification, offered by the National Alliance for Insurance Education and Research, is intended to demonstrate an agent’s proficiency in the insurance industry and to give them a competitive edge. Candidates can earn this certification by enrolling in and passing five CIC courses of their choice — there are seven in total — and the corresponding exams within five years of passing the initial exam. Additionally, you can earn the certification by enrolling in four CIC courses and one Certified Risk Manager (CRM) or Certified Personal Risk Manager Program (CPRM) course and passing all associated exams within five years.
Essential Skills
- Communication skills
This includes verbal and written communication, active listening, and the ability to read non-verbal cues. Every day, insurance agents interact with both internal and external customers. They may assist a potential customer in assessing their risks, discussing an existing policy, or listening intently to ascertain a customer’s needs and recommend the appropriate policy. They must be able to communicate sometimes complex policy information in a way that customers understand completely. Additionally, they must be able to communicate with a team and keep everyone informed to ensure that everything runs smoothly.
- Customer support
Insurance agents must possess superior customer service skills to retain long-term clients. This includes actively listening to their client’s needs and objectives and recommending insurance products that best meet those needs and objectives. A customer service agent who excels in this area is responsive, honest, professional, and attentive.
- Patience
Insurance agents, like any other sales position, require both patience and persistence. While some customers may be able to make an insurance decision quickly, others may require more time and convincing. Agents must understand that making an informed decision may require time, space, and support.
- Rapid learner
Insurance agents must be knowledgeable about a variety of insurance products to meet the diverse needs of their clients. They must have a thorough understanding of how the products work, how the plans are administered, and what they can do to resolve issues as they arise.
How to Become an Insurance Agent
- Earn a degree
While a high school diploma is technically all that is required to become an insurance sales agent, the majority of companies prefer that agents hold a college degree. Aspiring insurance agents should consider taking business, economics, or finance courses to enhance their effectiveness when selling insurance as a product. They may also wish to study marketing or psychology to improve their ability to promote and sell insurance products. Certain colleges and universities offer insurance and risk management courses that teach students about insurance theory, security analysis, and the fundamentals of risk management. A double major in risk management and insurance, or a business degree with a concentration in risk management, is especially advantageous if you wish to work as an underwriter.
- Completion of licensure requirements
Each state has its licensing requirements, but you are generally required to have a license for each category of insurance in which you intend to sell policies. You may be required to complete classroom training or self-study to earn a certain number of hours. Additionally, you may be required to submit fingerprints and information for a background check.
- Licensing
Each state will require you to pass a licensing exam that verifies your knowledge of applicable state insurance laws and insurance concepts unique to the type of insurance you will be selling. Depending on the type of insurance you sell, you may be required to register as a Series 6 or Series 7 broker.
- Look for work
If you intend to work as an independent insurance agent in a shared office with other agents, you will almost certainly receive on-the-job training while working alongside more experienced agents before seeking your clients. Additionally, you may wish to pursue a captive agent position with a specific insurance company.
Where to Work as an Insurance Agent
Insurance agents typically work for a variety of different insurance companies in a variety of different industries and sectors.
Insurance Agent Salary Scale
The average salary of an insurance agent in the U.S. is $57,084 per year
