All You Need To Know About Insurance Agents Today

TLTR: This article explains an insurance agent’s job description, responsibilities, and requirements to obtain an agent license

What is an Agent?

An insurance agent sells and promotes insurance package and services. Likewise, they sell products to clients. Moreover, they usually work on a commission basis. In short, the commission is taken out of the insurance premium an insured pays to the insurance company. Subsequently, their responsibilities include financial advising, networking, relationship building, marketing, and business development skills.

While an agent’s job today involves a degree of tech savviness, the basic duties haven’t changed much through the years. Above all, here is your bottom line: A good agent is an excellent salesman.

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What is the difference between an Agent and a Broker?

An agent represents the insurance company or the party who is doing the selling. That is to say, they are someone who seeks out clients who will buy insurance. Meanwhile, an insurance broker represents the insured. But a broker is looking for insurance according to their client’s needs.

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What’s Required to Become an Agent?

  • People skills
  • Energetic personality
  • Technical and legal understanding of policies
  • Product knowledge

Will I Require a Social Media Presence?

In today’s world? You bet. Firstly, any business you can think of requires a digital presence. To sum it up, social media is an important part of business strategies across almost all sectors. It’s no different for insurance agents.

PropertyCasualty360 proposes a few tips to develop a strong digital presence.

  • Be consistent: Keep up with a stable flow of posts. For example, it’s not a good idea to suddenly stop updating posts once you have committed to an account.
  • Provide Value: Include blogs, infographics and tips for your audience and always offer knowledge of the sector.
  • Pay attention to Trends: Post according to the current events. For example, you might post more about landslides if it’s a rainy season, or warn about intersection accidents during winter due to icy conditions.
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Responsibilities

  • Calculating premiums and learning about payment methods of clients
  • Maintaining database and bookkeeping systems
  • Monitoring insurance claims
  • Helping clients settle claims
  • Customizing insurance policy to meet clients’ needs
  • Ensuring the completion of insurance applications and claims

Meanwhile, additional responsibilities depend on the type of insurance you’re selling.

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How to Become an Insurance Agent

  • Have a high school or (preferably) a college diploma
  • Decide what kind of insurance you want to sell
  • Learn about your state’s licensing requirements
  • Take your insurance licensing exam

Therefore, it’s also good to be knowledgeable about the legal rights and duties of an agent. For example, the Legal Information Institute at Cornell Law School has simplified the regulations in the United States. As a result, this promoted uniformity in licensing, and transformed the assessing of the scope and responsibilities of an agent into a coherent process.

Furthermore, there are two kinds of insurance agents—captive insurance agents and independent agents. To clarify, captive agents sell insurance for a single carrier, while independent agents sell for multiple carriers. During your research, you will need to decide which type works best for you.

Did you find this article helpful? Leave any questions in the comments below.

Read similar insurance blogs to learn more.

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