What is an Insurance Sales Agent?

What Is an Insurance Sales Agent?

Insurance sales agents act as a liaison between the insurance companies and individuals seeking insurance coverage. These agents are responsible for helping people find the best coverage for their needs and financial situation. Types of insurance sold by insurance agents include life, property and casualty, health, auto and disability. Some sales agents work solely for one insurance company, while others work independently and sell coverage for multiple companies.

In response to increasing competition within the industry, some insurance sales agents are now providing risk management and financial advice to their customers. These types of services include retirement and estate planning.

According to the Bureau of Labor Statistics, the median annual salary for an insurance sales agent is approximately $45,000. Generally, salaries are comprised of a base payment, commissions and bonuses. Commissions are generated by the volume of sales, type of insurance sold and whether the sale is a renewal or a new sale. Some independent agents work on a commission-only basis.

Most agents can expect to receive some additional job perks. Many companies provide continuing education, office space and administrative support services. Some companies also pay for marketing, transportation and promotions. Generally, these perks do not apply to independent agents; however, independent agents can expect a higher commission to compensate for these expenses.

There is no specific background needed to become an insurance sales agent, but many agents hold a bachelor’s degree in a related field such as business, finance or economics. Good candidates for employment in the industry exhibit strong sales techniques and communication skills.

Prior to beginning work as an insurance sales agent, all employees must obtain a license from the state where they plan to work. Generally, these licenses are granted following required coursework and exams. Most states require updated training every two years to maintain certification.

The number of employment opportunities for insurance sales agents is expected to increase by 12% from 2008 to 2018. The demand for agents that sell insurance for a single company is expected to decrease as the insurance companies cut costs and depend more on independent agents.