How to Become an Independent Insurance Agent
If you’re interested in becoming an independent insurance agent, there are several steps you should take to get started. First, you need to complete an application with each of the insurance companies you would like to work for. Once your application is approved, you’ll be granted binding authority to sell insurance on their behalf.
What is an independent agent?
An independent insurance agent works with multiple insurance companies to match clients with the right insurance coverage and price. The agent works to understand each client’s unique situation and needs, and will find policy options that meet those needs.
A good agent will walk clients through the different options and provide side-by-side comparisons.
Independent agents are more flexible than captive agents, which means they can work with more providers. They can also negotiate for better coverage. While captive agents are limited in their choice of insurance providers, independent agents have a wider variety of choices.
An independent insurance agent can recommend the right policy for the customer and will explain the pros and cons of each type.
Independent insurance agents are also required to attend specialized training courses or pass state-required exams. They may also be allowed to sell different types of insurance and policies in different states.
In addition to completing mandatory education requirements, independent agents are paid on commission. Before working with a company, check with the state licensing agency and find out which insurance companies they represent.
Job duties
Independent insurance agents act as brokers between consumers and insurance companies. Their job duties include cold-calling prospective clients, providing insurance information, processing insurance claims, and maintaining records.
Ideal candidates have knowledge of insurance laws, excellent communication skills, and customer service orientation. They should also be computer-literate and pay attention to details. Their resumes should display high school or college education, state licensing, and insurance knowledge.
An insurance agent’s responsibilities may include meeting sales targets and new business production goals. They also need to network and develop business referral relationships. In addition, they may be responsible for inputting quotes and coordinating with mortgage companies and lenders.
Agents may also be responsible for providing customer support and assistance with insurance claims. Some agents represent several insurance companies, which requires them to have broad knowledge of the products and services.
Independent insurance agents also promote and sell different types of insurance policies. They must also be able to explain the features of each insurance plan. Agents also have to select the right insurance company that offers coverage that fits the client’s needs.
Insurance License
If you’re interested in the insurance industry, becoming an independent insurance agent might be the career path for you. This career option allows you to work for any insurance company you choose.
First, you’ll need to become licensed to sell insurance. Each state has its own licensing requirements. For example, you’ll need to obtain a property and casualty license in order to sell commercial insurance products.
In addition, you’ll need to take a pre-licensing course and pass a licensing exam. Once you’ve passed your licensing exam, you can begin marketing your services to potential clients.
Becoming an independent insurance agent allows you to work with a wide range of insurance companies, and you can choose which products to sell to your clients. This allows you to better serve your clients’ financial and coverage needs, and you can earn a higher commission at renewal time.
Plus, you can work with a team of other insurance agents who will help you meet your production goals. By becoming an independent insurance agent, you can earn higher commissions and live a more fulfilling life.
Salary
The salary for an Independent Insurance Agent may vary from one state to another. In New York, an Insurance Agent may earn more than someone in a similar profession in another state.
For example, an Insurance Agent who writes $500,000 in premiums in year one may make $75,000. On average, 80 percent of those premiums will be renewed the next year. Increasing experience will contribute to an Insurance Agent’s earnings.
In addition to commissions, insurance agents may earn bonuses and incentives through the sale of policies. Some insurance companies pay their agents a base salary and may offer flexible work arrangements.
Other companies pay agents a commission in addition to quarterly bonuses. Some insurance agents choose to sell insurance policies through an independent agency, which gives them the independence to negotiate rates and commissions with insurance companies.
On ZipRecruiter, Independent Insurance Sales Agent salaries range from $47,500 to $109,500, with the highest earners earning over $200,000 a year. Independent Insurance Sales Agent salaries vary by up to $62,000, depending on location and skill level.
What products to sell
If you are an independent insurance agent, you need to determine what products to sell. For example, if you’re selling term life insurance, you’re probably going to target a younger demographic than if you were selling Medicare. You should also develop a comprehensive marketing plan that incorporates multiple strategies. You’ll also want to allocate a significant portion of your budget to marketing.
Get appointed with insurance companies
To get appointed with an insurance company as an independent insurance agent, you should first obtain the necessary credentials and experience. Insurance carriers will look for licensed agents who are able to find new clients and treat their policyholders well. Experience selling products and finding new clients will also improve your chances of getting a direct appointment.
First, you need to be registered with the state. Getting appointed with an insurance company requires the insurance company to register your appointment at the state level.
As an independent insurance agent, you will approach many different insurance companies. These companies will then appoint you to sell their products. These appointments will dictate the types of policies you can sell and how much you get paid.
In some cases, you can get appointed with more than one company if you are able to effectively represent a large number of companies. Having multiple insurance companies allows you to obtain competitive pricing and terms.
Find and maintain clients
In today’s marketplace, independent insurance agencies have more opportunities to thrive than ever before. They can be the hub of their own community, while also being part of many others.
Each of those communities is filled with consumers – some of them current customers, and some of them prospective ones. This gives agencies an opportunity to attract and maintain clients, but they must be smart and realistic about the potential growth of their business.
One of the best ways to maintain clients is to build a relationship. When a client trusts you, they are more likely to renew their policies or refer new prospects. To make sure you stay connected with your clients, consider interacting with them on social media and keeping up with their lives.
You can even take notes about what they like or don’t like. Some insurance agents also receive leads directly from the insurance company. These companies often hand out leads to agents in the hope that they will become more productive.
Another way to find and maintain clients is to advertise your services to the insurance market. This will help you reach both personal and commercial customers.
For example, you can advertise business insurance to people who are looking for personal lines, and vice versa. For independent insurance agencies, client acquisition and client retention are essential growth levers. However, you will need to put in a lot of effort to get new clients and maintain current ones.
Cost
Becoming an independent insurance agent can be a lucrative career choice. It pays well, and the industry is growing steadily. But if you are considering becoming an independent agent, there are a few things to consider first.
For one, getting your license is a must. In some states, this means taking a pre-licensing insurance education course. These courses range in cost and content, but many individuals choose to take them.
Another important factor is marketing. Without good marketing, you’ll struggle to sell enough policies.
Becoming an independent insurance agent also allows you to work with many more insurance companies, offering a broader range of products and services than a traditional agent.
Because you’re not bound by the offerings of any one insurance company, you can better meet the needs of your clients. In addition, you’ll be able to tailor products to your clients’ unique situations.