INSURANCE AGENTS AND BROKERS

Nature of the Work

Most people have their first contact with an insurance company through an insurance agent or broker.  These professionals sell individuals and businesses insurance policies that provide protection against loss.  Insurance agents and brokers help individuals, families, and businesses select the right policy that best provides 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. Specialists in group policies 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.

Training, Other Qualifications, and Advancement

For jobs selling insurance, companies prefer college graduates particularly those who have majored in business or economics.  Some hire high school graduates with potential or proven sales ability or who have been successful in other types of work.  In fact, most entrants to agent and broker jobs transfer from other occupations, so they tend to be older, on average, than entrants to many other occupations.

 College training may help agents or brokers grasp more quickly the technical aspects of insurance policies and the fundamentals and procedures of selling insurance.  Many colleges and universities offer courses in insurance, and some schools offer a bachelor's degree in insurance.  College courses in finance, mathematics, accounting, economics, business law, government, and business administration enable insurance agents or brokers to understand how social, marketing, and economic conditions relate to the insurance industry. 

Job Outlook

Employment of insurance agents and brokers is expected to grow about as fast as the average for all occupations through the year 2005. Most job openings are expected to result from the need to replace agents and brokers who leave the occupation.  Many beginners find it difficult to establish a sufficiently large clientele in this highly competitive business; consequently, many eventually leave for other jobs.  Opportunities should be best for ambitious people who enjoy sales work and who develop expertise in a wide range of insurance and financial services.

Earnings

The median annual earnings of salaried insurance sales workers was $30,100 in 1992.  The middle 50 percent earned between $20,900 and $42,200 a year.  The lowest 10 percent earned $15,400 or less, while the top 10 percent earned over $64,600.  Most independent agents are paid on a commission only basis, whereas sales workers who are employees of an agency may be paid in one of three ways: Salary only, salary plus commission, or salary plus bonus. 

Additional information may be obtained by contacting the following organizations:
 
National Association of Life Underwriters, 1922 F St.  NW., Washington, DC 20006.

National Association of Professional Insurance Agents, 400 N. Washington St., Alexandria, VA 22314.

American Society of CLU and ChFC, 270 Bryn Mawr Ave., Bryn Mawr, PA 19010-2195.

Society of Certified Insurance Counselors, 3630 North Hills Dr., Austin, TX 78731, or call 1-800-633-2165.

Society of Chartered Property and Casualty Underwriters, Kahler Hall, 720 Providence Rd., P.O.  Box 3009, Malvern, PA 19355-0709.

General occupational information about insurance agents and brokers is available from the home office of many life and casualty insurance companies.  Information on State licensing requirements may be obtained from the department of insurance at any State capital.


