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Insurance sales agents sell insurance policies of all types to customers. They work in three general areas: property and casualty insurance; life insurance; and health insurance.

Their goal is to help customers purchase a plan that suits their needs, whether it is a business who needs to insure against product liability or an individual who needs to cover a car against theft.

Agents help customers consider premium costs, deductibles and other financial considerations. Agents can either work for one insurance company or they can work for brokerages, in which case they show individual clients options from multiple companies and pair them with the best one for them.

Insurance sales agents help insurance companies generate new business by contacting potential customers and selling one or more types of insurance.

An agent explains various insurance policies and helps clients choose plans that suit them. Although most insurance sales agents work for insurance brokerages selling the policies of several companies, some work directly for a single insurance company.

How to become an Insurance Sales Agent

Insurance sales agents learn many of their job duties on the job from other agents. Many employers have new agents shadow an experienced agent. This allows the new agent to learn how to conduct the company’s business and how the agency interacts with clients.

Insurance sales agents must have a license in each of the jurisdictions where they work. Separate licenses are required for agents to sell life and health insurance and property and casualty insurance.

In most cases, licenses are issued only to applicants who complete specified courses and who pass state exams covering insurance fundamentals and insurance laws.

Most licensing authorities also require agents to take continuing education courses every two years, focusing on insurance laws, consumer protection, ethics, and the technical details of various insurance policies.

Employers also are increasingly placing greater emphasis on continuing professional education as the variety of financial products sold by insurance sales agents increases. Changes in tax laws, government benefits programs, and other local and federal regulations can affect the insurance needs of clients and the way in which agents conduct business.

Agents can enhance their selling skills and broaden their knowledge of insurance and other financial services by taking courses at colleges and universities or by attending conferences and seminars sponsored by insurance organizations.

As the demand for financial products and financial planning services increases, many agents also choose to get licensed and certified to sell securities and other financial products.

A number of organizations offer certifications that show an agent’s expertise in insurance specialties. These certifications are not required for employment, but they can give job candidates an advantage over other applicants. Certifications can also be a source of continuing education credit.

Most employers require agents to have a high school diploma; however, more than one-third of insurance sales agents have a bachelor’s degree. Agents must be licensed in the jurisdictions where they work.

What does an Insurance Sales Agent do?

Insurance sales agents typically do the following:

  • Call potential clients to expand their customer base
  • Interview prospective clients to get data about their financial resources and discuss existing coverage
  • Explain the features of various policies
  • Analyze clients’ current insurance policies and suggest additions or changes
  • Customize insurance programs to suit individual clients
  • Do administrative tasks, such as keeping records and handling policy renewals
  • Help policy holders settle claims

Insurance sales agents commonly sell one or more types of insurance, such as property and casualty, life, and health and long-term care.

Property and casualty insurance agents sell policies that protect people and businesses from financial loss resulting from automobile accidents, fire, theft, and other events that can damage property.

For businesses, property and casualty insurance also covers injured workers’ compensation, product liability claims, or medical malpractice claims.

Life insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies. They also sell annuities that promise a retirement income.

Health and long-term care insurance agents sell policies that cover the costs of medical care and assisted living services in old age. They may also sell dental insurance and short-term and long-term disability insurance.

An increasing number of insurance sales agents offer their clients comprehensive financial planning services, especially for clients approaching retirement. These services include retirement planning, estate planning, and help in setting up pension plans for businesses. In addition to offering insurance, these agents may become licensed to sell mutual funds, variable annuities, and other securities.

This practice is most common with life insurance agents who already sell annuities, but many property and casualty agents also sell financial products.

Many agents spend a lot of time marketing their services and creating their own base of clients. They do this in a variety of ways, including by making “cold” sales calls to people who are not current clients. They also find new clients through referrals by current clients.

Keeping clients happy so they recommend the agent to others is a key to success for insurance sales agents.

What is the workplace of an Insurance Sales Agent like?

Most insurance sales agents work in offices, although some may spend much of their time traveling to meet with clients.

Their work environment may vary depending on the type of company that employs them. Since some agencies are small, agents may work alone or with only a few others.

Insurance sales agents usually determine their own hours of work and often schedule evening and weekend appointments for the convenience of clients.

Some meet with clients during business hours and then spend evenings doing paperwork and preparing presentations to prospective clients. Most agents work full time and some work more than 40 hours per week.

Critical Skills and Tools:

Skills vary as per the chosen niche in insurance sector. Insurance sales agents must be great communicators, particularly those who sell life insurance, rely on commissions. Therefore, sales agents need to be persuasive.

Insurance underwriters need to be able to ask the right questions and gather information, then sift out the important details to make a decision. Good underwriters are excellent decision-makers who can defend their choices.

However, underwriting is a shrinking field thanks to greater automation that helps companies balance the risks and rewards of insuring others.

Actuaries deal infrequently with customers. Instead, they are busy crunching numbers. They show high levels of numeracy and can think critically about those numbers to make justifiable decisions.

Claims adjusters, claims examiners and insurance investigators are the detectives of the industry. They ask incisive questions of claimants and evaluate their answers to make sure they withstand scrutiny.

Adjusters bring negotiation skills to the table, as they must be able to match up the evidence they have accumulated with a compensation package that saves the insurance company money while being acceptable to the claimant.

Insurance sales agents maintain contact with potential customers, so they rely on customer relationship management software, such as Allied Financial Software Act4Advisors or Insurance Technologies ForeSight Enterprise, but they must also utilize financial analysis software so they do not waste time making sales to people who will not be approved. Cygnus Software IncomeMax is one example.

Insurance claims and policy processing clerks use more standardized office software as their roles are more administrative and less specific. They typically use billing software, user databases and Microsoft Office.