Insurance Agents

Career summary

Insurance agents explain different insurance options and help customers choose the policies that are right for them. There are many different kinds of policies that cover different types of situations. These include:

• Car
• Dental
• Fire
• Life
• Medical
• Property

Agents discuss with customers how much protection they want and how much they are willing to pay. In some cases, they can put together customized insurance packages for customers. Agents regularly review their customers' files and suggest changes to policies. For example, customers may need to increase coverage or change the people on their insurance plan when their family situations change. Insurance agents may also offer financial planning services.

Insurance agents fill out forms about the items being insured. If a customer wants car insurance, the insurance agent finds out and records details about the car. These details, such as age and model of the car, affect how much protection the insurance company will offer if something happens to damage or destroy the car. 

Life and health insurance policies depend upon details about the customer's health and lifestyle. Customers may need to complete medical exams to figure out what policy fits them. Once these forms are filled out, agents forward them to insurance underwriters who analyze the risk of insuring customers.

Agents constantly search for new customers. They may contact current customers for the names of friends or family members who might need insurance. Agents often advertise their services in order to compete with agents from other companies.

Some insurance agents work as independents, selling policies from several different companies. Some agents sell policies from only one company. This difference can influence how much insurance agents earn and how they get paid. Some agents specialize in just one type of insurance.

In small offices, insurance agents may need additional knowledge such as accounting. They often manage their own bookkeeping. They also may do some basic clerical duties, such as:

• Typing
• Computer data entry
• Document filing

Related careers

This career is part of the Finance cluster of careers.

Related careers include:

• Advertising Salespeople
• Financial Counselors
• Insurance Adjusters and Examiners
• Insurance Policy and Claims Clerks
• Loan Officers
• Real Estate Agents
• Sales Representatives
• Securities Salespeople

Job duties

Task list

The following list of tasks is specific to insurance agents.

• Act as representatives for insurance companies.
• Explain the details of different insurance policies to customers. Customize insurance plans based on specific customer needs.
• Sell policies to customers and arrange payment schedules.
• Gather information about the items or people being insured. Calculate premiums.
• Make sure clients complete the proper forms and that any medical requirements are filled.
• Use computers to keep track of customers and their policies.
• Inspect property that customers want to insure to determine the level of risk.
• Contact the insurance company when customers experience a loss. Monitor the claims process.
• Maintain regular contact with current customers. Search for additional customers.
• Perform administrative tasks, such as filing, bookkeeping, and processing renewals.
• Attend meetings and programs to learn about new products and services.

Common work activities

Insurance agents perform the following tasks. These tasks are common to many careers.

• Establish and maintain relationships
• Get information needed to do the job
• Convince others to buy goods or change their minds or actions
• Use computers
• Organize, plan, and prioritize work
• Evaluate information against standards
• Make decisions and solve problems
• Perform for or work with the public
• Process information
• Develop goals and strategies
• Perform administrative tasks
• Update and use job-related knowledge
• Communicate with supervisors, peers, or subordinates
• Analyze data or information
• Communicate with people outside the organization
• Schedule work and activities
• Document and record information
• Judge the value of objects, services, or people
• Think creatively
• Identify objects, actions, and events
• Monitor events, materials, and surroundings
• Resolve conflicts and negotiate with others
• Explain the meaning of information to others

Work requirements

Working conditions

In a typical work setting, insurance agents:

Interpersonal relationships

• Have a high level of job-related social interaction. Agents spend a lot of time talking to customers.
• Communicate by telephone, email, and in person on a daily basis. Sometimes write letters and memos, but less often.
• Sometimes deal with unpleasant, angry, or discourteous people. This may occur when rates increase or policy amounts are higher than expected.
• Sometimes work in a group or as part of a team.
• Are somewhat responsible for the work done by others.

Physical work conditions

• Work mostly indoors. May work outdoors to examine houses or cars that people want to insure.
• Use a car to travel to and from client homes or offices.
• Often work near others. They may share the same office space.

Work performance

• Must be accurate and thorough in their work. Errors could leave customers without insurance.
• Regularly make decisions that strongly impact their employer's finances and reputation.
• Make decisions that affect their clients on a daily basis. They rarely consult a supervisor before deciding on a course of action.
• Rarely, if ever, consult a supervisor before deciding their daily tasks and priorities.
• Work in a highly competitive environment. Agents are constantly trying to gain new business.
• Abide by strict weekly deadlines.
• Often repeat the same tasks, such as calculating policy rates and organizing customer files.

Hours/travel

• May work nights or weekends to meet customers who cannot meet during regular hours.
• May have flexible schedules. Most work a set schedule, however.
• Usually work over 40 hours.

Physical demands

Insurance agents frequently:

• Sit for long periods of time.

It is important for insurance agents to be able to:

• Speak clearly so listeners can understand.
• Understand the speech of another person.
• See details of objects that are less than a few feet away.

It is not as important, but still necessary, for insurance agents to be able to:

• See details of objects that are more than a few feet away.

Skills and abilities

Insurance agents need to:

Communicate

• Speak clearly so listeners can understand.
• Read and understand work-related materials.
• Understand written information.
• Understand spoken information.
• Listen to others and ask questions.
• Write clearly so other people can understand.

Reason and problem solve

• Analyze ideas and use logic to determine their strengths and weaknesses.
• Notice when something is wrong or is likely to go wrong.
• Use reasoning to discover answers to problems.
• Develop rules that group items in various ways.
• Follow guidelines to arrange objects or actions in a certain order.
• Combine several pieces of information and draw conclusions.
• Judge the costs and benefits of a possible action.
• Understand new information or materials by studying and working with them.

Use math and science

• Choose a mathematical method or formula to solve problems.
• Use math skills to solve problems.
• Add, subtract, multiply, and divide quickly and correctly.

Manage oneself, people, time, and things

• Manage the time of self and others.

Work with people

• Persuade others to approach things differently.
• Look for ways to help people.
• Solve problems by bringing others together to discuss differences.
• Be aware of others' reactions and understand the possible causes.
• Change behavior in relation to others' actions.

Education and training

Educational programs

The programs of study listed below will help you prepare for the occupation or career cluster you are exploring.

Programs of study directly related to this occupation

• Insurance

Other programs of study to consider

• Business Economics
• Business Management and Administration
• Entrepreneurial and Small Business Operations
• Finance
• Marketing
• Psychology, General
• Public Relations
• Sociology

Training

To work as an insurance agent, you typically need to:

• have a high school diploma or equivalent;
• complete moderate-term, on-the-job training; and
• have a license.

Education after high school

Many insurance agents have a bachelor's degree. Business and economics are common majors, but other areas of study are acceptable. Many colleges offer courses in insurance and a few offer bachelor's degrees in that program. Regardless of your major, you should take courses in finance, math, and accounting. Business and business law courses also provide a good background for this occupation. Courses in psychology, sociology, and public speaking can help you with the sales side of the job.

Work experience

Many agents transfer from other jobs to insurance sales. Work experience dealing with people and in sales is good preparation for this occupation.

On-the-job training

Insurance agents often begin by completing self-study courses with an insurance agency. In these courses you study the company's products and services. You also study insurance law and licensing regulations. You become qualified as an agent by completing a series of tests. The tests establish your competency and qualify you for a license to sell insurance in your state. Each type of insurance, life, health, and property and casualty, requires a separate license. Training generally lasts up to a year.

Agents must update their skills and knowledge by taking retraining courses each year. Most states require retraining in insurance law and consumer protection.

Helpful high school courses

In high school, take classes that prepare you for college. A college preparatory curriculum may be different from your state's graduation requirements.

You should also consider taking some advanced courses in high school. This includes Advanced Placement (AP) and International Baccalaureate (IB) courses if they are available in your school. If you do well in these courses, you may receive college credit for them. Advanced courses can also strengthen your college application.

Helpful electives to take in high school that prepare you for this career include:

• Computer Applications
• Consumer Law
• Personal Finance
• Principles of Sales
• Psychology

Many insurance agents are self-employed. If you want to run your own business some day, you should consider taking these courses as well:

• Accounting
• Entrepreneurship
• Introduction to Business

The courses listed above are meant to help you create your high school plan. If you have not already done so, talk to a school counselor or parent about the courses you are considering taking.

You should also check with a teacher or counselor to see if work-based learning opportunities are available in your school and community. These might include field trips, job shadowing, internships, and actual work experience. The goal of these activities is to help you connect your school experiences with real-life work.

Join some groups, try some hobbies, or volunteer with an organization that interests you. By participating in activities you can have fun, make new friends, and learn about yourself. Maybe one of them will help direct you to a future career. Here are examples of activities and groups that may be available in your high school or community.

Things to know

Many insurance companies look for agents who have a bachelor's degree in insurance, business, or economics. They also look for insurance agents who are licensed. Because the range of insurance products is increasing, many employers prefer agents who are also licensed to sell securities.

Employers look for insurance agents who present themselves well. Selling insurance takes confidence, knowledge, and the ability to build trust with customers. Employers look for agents who speak clearly and listen carefully. Also, since agents often work without supervision, employers look for agents who can work on their own, follow through, and finish tasks. Employers also look for insurance agents who are motivated to contact customers and build a strong pool of customers.

Tips

Working for one year at an insurance company before taking classes and becoming certified helps applicants fully understand the work environment and an agent's day-to-day responsibilities. The ability to network and keep a positive attitude in times of adversity is important. Since working on commission can mean irregular earnings, agents need to be able to set aside money for times when sales are down.

Costs to workers

Workers may need to pay for mandatory pre-license education courses. Sometimes these costs are covered by the employer. Agents may also want to invest in professional development programs and continuing education. Business attire is necessary when working with clients.

Licensing/certification

Licensing is required by the State Insurance Commissioner. Licensing requirements include:

• being a minimum age of 18;
• being a resident of and actually reside in the state of Washington;
• being trustworthy and competent;
• passing a written exam;
• having a background investigation;
• providing fingerprints;
• 20 hours of approved pre-license education for each type of insurance examination (example: life or auto) and a minimum of four hours of approved coursework relating to Washington's rules and regulations;
• certification of education requirement completion;
• 24 hours of continuing education for residents, of which three hours must be on ethics; and
• appointments for each insurer represented, unless designated as an authorized producer for a firm or corporation, in which case a Certificate of Affiliation is needed.

Insurance agents who sell long-term care insurance, long-term care partnership insurance, or both, must take an initial approved eight-hour course related to these areas. After that, they are required to take a four-hour refresher course every two years.

For additional information and licensing fee amounts, contact:

Washington State Office of Insurance Commissioner
Licensing and Education 
PO Box 40255
Olympia, WA 98504-0255
360.725.7144

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Job listings

Listed below are links to job categories from the National Labor Exchange that relate to this career. Once you get a list of jobs, you can view information about individual jobs and find out how to apply. If your job search finds too many openings, or if you wish to search for jobs outside of Washington, you will need to refine your search.

• Insurance Sales Agents 

To get a listing of current jobs from the WorkSource system, go to the WorkSource website .

Wages

Independent insurance agents usually are paid solely by commission. This means they earn a percentage on every insurance policy they sell. The more they sell, the more they earn. Agents who work for one company may be paid by salary only, salary and commission, or salary and bonus. Many insurance agents receive bonuses after reaching sales goals.

Agents who work full time for one company usually receive benefits. Common benefits include paid training, health insurance, and retirement plans. They may also be paid for travel expenses and attendance at conferences. Independent agents may receive fewer benefits. However, they may earn more commissions by selling for several companies. These earnings help to cover independent insurance agents' expenses.

Employment and outlook

Washington outlook

The table below provides information about the number of workers in this career in various regions. It also provides information about the expected growth rate and future job openings.

National employment

About 12% of insurance agents are self-employed.

Major employers:

• Insurance agencies
• Insurance companies

National outlook

Demand for insurance agents will be strong. This is because the economy is improving. Although online sales of insurance policies will reduce growth in this occupation, agents are still required for more complex forms of insurance. Job prospects may be best for agents who sell health insurance and long-term care insurance.

Many openings will occur as people retire or leave the occupation. The best opportunities will be for those who have a bachelor's degree and strong sales skills.

Other resources

American Council of Life Insurers 
101 Constitution Avenue NW, Suite 700
Washington, DC 20001
202.624.2000

Independent Insurance Agents and Brokers of America 
127 South Peyton Street
Alexandria, VA 22314
800.221.7917

Independent Insurance Agents and Brokers of Washington 
11911 NE 1st Street, Suite B103
Bellevue, WA 98005
425.649.0102

Insurance Information Institute 
110 William Street
New York, NY 10038
212.346.5500

National Association of Professional Insurance Agents 
419 North Lee Street
Alexandria, VA 22314
703.836.9340

Professional Insurance Agents - Western Alliance 
3205 NE 78th Street, Suite 104
Vancouver, WA 98665
360.571.7100 x118

The Council of Insurance Agents and Brokers 
701 Pennsylvania Avenue NW, Suite 750
Washington, DC 20004
202.783.4400

US Small Business Administration 
Seattle District Office
2401 Fourth Avenue, Suite 450
Seattle, WA 98121
206.553.7310

References

Career cluster

• Finance

Career path

• Enterprising (Business Communications)

O*Net  occupation

• Insurance Sales Agents (41-3021.00) 

O*Net job zone 

• Job Zone 4 - Considerable preparation needed. A minimum of two to four years of work-related skill, knowledge, or experience is needed for these occupations.

DOT occupations

• Estate Planner (186.167-010) 
• Placer (239.267-010) 
• Sales Agent, Insurance (250.257-010) 
• Special Agent, Group Insurance (169.167-050) 

Strong Interest Inventory

• Life Insurance Agent

Holland occupational cluster

• Enterprising/Conventional/Social

COPSystem

• Business Skilled