GeorgiaJobWatch.com
Working as an Insurance Agent or Broker
Significant Points
Nature of the Work
Most people have their first contact with an insurance company through an insurance agent or broker. These professionals sell insurance policies to individuals and businesses to provide protection against financial loss. Insurance agents and brokers help individuals, families, and businesses select the policy that provides the best insurance protection for their lives and health, as well as for their automobiles, jewelry, personal valuables, furniture, household items, businesses, and other properties. Agents and brokers prepare reports, maintain records, and, in the event of a loss, help policyholders settle insurance claims. Some agents may help an employer provide employees the opportunity to buy insurance through payroll deductions. Insurance agents may work for one insurance company or as "independent agents" selling for several companies. Insurance brokers do not sell for a particular company, but place insurance policies for their clients with the company that offers the best rate and coverage.
Insurance agents sell one or more of several types of insurance—life, property and casualty, health, disability, and long-term care. Life insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies. Depending on the policyholder's circumstances, a whole-life policy can be designed to provide retirement income, funds for the education of children, or other benefits. Life insurance agents and brokers are sometimes referred to as life underwriters. (See the statement on insurance underwriters elsewhere in the Handbook.)
Property and casualty insurance agents and brokers sell policies that protect individuals and businesses from financial loss as a result of automobile accidents, fire or theft, storms, and other events that can damage property. For businesses, property and casualty insurance can also cover injured workers' compensation, product liability claims, or medical malpractice claims. Many life and property and casualty insurance agents also sell health insurance policies covering the costs of medical care and loss of income due to illness or injury.
An increasing number of insurance agents and brokers offer comprehensive financial planning services to their clients such as retirement planning counseling. As a result, many insurance agents and brokers are involved in "cross-selling" or "total account development"—besides insurance, these agents may become licensed to sell mutual funds, annuities, and other securities. (See the statement on securities and financial services sales representatives elsewhere in the Handbook.)
Since insurance sales agents obtain many new accounts through referrals, it is important that agents maintain regular contact with their clients to ensure their financial needs are being met as personal and business needs change. Developing a satisfied clientele who will recommend an agent's services to other potential customers is a key to success in this field. Some insurance agents and brokers are also using the Internet to advertise and describe the financial products and services that they provide.
Working Conditions
Most insurance agents and brokers work in small offices, contacting clients and providing insurance policy information. However, most of their time is spent outside their offices, traveling locally to meet with clients and close sales. They generally arrange their own hours of work, and often schedule evening and weekend appointments for the convenience of clients. Although the majority of agents and brokers work no more than 40 hours a week, some work as much as 60 hours a week or even longer.
Agents and brokers are employed in cities and towns throughout the country, but most work in or near large population centers. Some insurance agents and brokers are employed in the headquarters of insurance companies, but the majority work out of local company offices or independent agencies. tion on a wide variety of financial products has greatly improved agents' and brokers' efficiency and enabled them to devote more time to clients' needs.as life, health, property, and casualty insurance, or financial consulting. Although voluntary, professional designation assures clients and employers that an agent has a thorough understanding of the relevant specialty. Many professional societies now require agents to commit to continuing education in order to retain their designation. property/casualty field, establish their own independent agencies or brokerage firms. .
Related Occupations
Other workers who sell financial products or services include real estate agents and brokers, securities and financial services sales representatives, financial advisors, estate planning specialists, and manufacturers' sales workers. sing requirements may be obtained from the department of insurance at any State capital.