A career as an insurance broker is stable and rewarding. People will always need insurance products — and guidance about what products and services to buy. As an insurance broker, you can help people every day.
Read on to learn more about how to become an insurance broker and why you should consider this interesting career.
Reasons to Consider Becoming an Insurance Broker
Insurance is a great industry to join. And with the talent gap affecting many employers, it’s never been a better time to become an insurance broker. Brokers work closely with their clients and partners, spending time learning and getting to know their customers’ needs. It is a dynamic and always changing field, which keeps it interesting!
Many people think of insurance as recession-proof.
Insurance is often considered a recession-proof industry. People will always need insurance, and many consumers continue to prioritize it even when financial times are tough. Banks and credit unions require insurance on cars and homes they finance, so built-in demand for insurance products exists. And insurance brokers are especially valuable to consumers during a recession as brokers help their customers find the best rate and product for their needs.
Insurance brokers help people protect their assets.
Many people work in insurance because they like helping others. Insurance brokers work closely with their clients to understand their needs. Then they structure coverage to best meet these needs, protect assets, and guard against risks. When people have accidents or suffer damage to their homes or property, they need insurance to rebuild. Brokers are an important part of the equation, advocating for their clients and placing their coverage with the right insurers. And insurance brokers work directly for the consumer rather than the insurance company. This makes it an attractive role for many people.
Insurance brokers earn a good salary.
The insurance industry is attractive to many people because of the potential for high salaries. While estimates range depending on location, experience, and many other factors, the average insurance broker earns about $80,000 annually. Bonuses and other benefits can drive that number even higher.
The insurance industry is interesting and dynamic.
A career as an insurance broker is exciting. Every day is different, and brokers need great problem-solving and communication skills. As a broker, you’ll work with diverse clients, vendors, and insurance companies every day. You’ll also need to keep up with industry trends and news since the field is always changing.
Insurance relies on technology and innovation.
Technology is taking over many basic processes in insurance, which means brokers have to understand innovations and work with new technologies often. Taking advantage of insurtech means brokers can work smarter and do more in less time. Many insurers have gone digital, so insurance brokers need to learn various systems and work with different technology every day.
How to Become an Insurance Broker
The steps to becoming an insurance broker depend on your state. State governments regulate insurance, so you should check the website of your state’s insurance department to learn more. In California, brokers have to pass an exam to earn their license. California also requires producers to submit to fingerprint verification. Insurance brokers must take ongoing CE credits to maintain their license after passing the licensing exam.
Insurance brokers are not required to have any special educational background or even a college degree. A high-school diploma or the equivalent is often the only education required to start training as a broker. A college degree could help when it comes to passing the licensing exam, but it is not a requirement.
Imagine Life as an Insurance Broker
If you’re curious about life as an insurance broker, check out our blog for more information. Connect with American Agents Alliance on social media to learn more about insurance as a career. And once you’ve decided to pursue a career in insurance, become a member of the American Agents Alliance to gain valuable networking support and helpful member discounts.
It’s a great time to become an insurance broker!