There are various roles in the insurance industry, however one of the ones most people outside of the industry will come into contact with is an insurance broker. Brokering insurance is big business, and is a very necessary part of the financial services industry. It can also be an interesting career path for the right kind of people. Here we take a look at what an insurance broker is, what they do, and how someone interested in this career can get started.
All about Insurance Brokers
Insurance brokers are the people who work with clients, who will be either individuals or businesses, to find the best insurance products and sell them to them. They are not the insurers themselves, and they are generally not employed by an insurance company, but they are experts in the insurance industry and often specialize in a specific form of insurance, for example car insurance, home insurance, life insurance or liability insurance. An insurance broker is generally trusted by their clients as an impartial adviser, and is expected to act with integrity, though they do make their money from commission on policies they broker in much the same way as a salesman.
What Sort of Person Makes a Good Insurance Broker
The first qualities that are essential to be an insurance broker are to be honest and have a good handle on money. These aren’t just good qualities to have, they are things you will be checked for if you try to become a licensed insurance broker – you must have a good credit history and a clean criminal record or your application will be rejected instantly.
Aside from this, a broker would generally be a good communicator who is good at working with customers, and who can put them at their ease – in a lot of cases you’ll be asking people some quite personal questions in order to work out what kind of insurance they need (for example a broker for term life insurance would need to know a lot about their client’s medical history). Good math skills, good analytical skills and a way with numbers are also highly desirable, if not essential. If you have all of these qualities and enjoy the idea of working in a client facing role in insurance, then brokering could be just the job for you!
How Does One Become a Licensed Insurance Broker?
Licensing requirements vary from state to state, though all licenses are issued by Pearson VUE, who also provide the study materials for those looking to sit the licensing exam. In some states you will have to take some classroom based lessons as part of the course of study, whereas in others you are allowed to study by yourself in your own time if you prefer.
Once you have passed your licensing exam and been cleared in the credit and criminal checks, you will be able to begin to work as an insurance broker in your state. There are companies you can work for as a broker, or you can practice on your own, however you must have the license appropriate to your state in order to seek employment or go into business.This post is written by Benjamin Mark; he is a life insurance agent with TermLife.com and an ardent fan of baseball. He likes to write articles on various topics and helps readers make better decisions when they select insurance policies.