How to become an insurance agent (Education, job types, duties and salary)
What is an insurance agent?
An insurance agent sells insurance policies and is either employed by an insurance company or works as an independent agent. Insurance agents may specialize in life, health, property, or other types of insurance, and they work to connect clients to policies that meet their needs.
An insurance agent may be employed by an insurance company, in which case they offer only the insurance policies that the company sells. Alternatively, an insurance agent may be independent, running their own business and offering insurance policies provided by several different companies.
John Espenschied, owner of Insurance Brokers Group, is an expert in the insurance industry. He explains that while insurance agents have many responsibilities, his primary responsibility is to help his clients protect their financial assets. "I do this by providing them with information about different types of insurance policies and helping them choose the policies that are right for them," he explains. "I also help my clients file claims if they ever have a loss."
[An insurance agent's] primary responsibility is to help his clients protect their financial assets.
In addition to providing advice about insurance, Espenschied provides customer service by answering questions, resolving customer problems and making sure that customers are satisfied with their coverage.
To build up their client base, insurance agents also participate in multiple marketing activities. They may use cold calling, email, social media and postal mailing efforts to generate a list of new prospects. Insurance agents may receive leads through client referrals, and may also participate in speaking events.
When meeting with clients, insurance agents must listen carefully and help identify the right insurance policies for a client's needs. Other responsibilities include scheduling meetings, generating quotes and answering client questions.
How to become an insurance agent in 5 steps
You can prepare for a career as an insurance agent through five steps.
Choose a program and earn your degree.
Espenschied explains that while there is no specific educational requirement to become an insurance agent, earning a college degree can still be helpful. "Many insurance companies prefer to hire agents who have a college degree," he says. "A degree in finance, business, or economics is particularly helpful."
Consider certifications and licenses.
"In addition to a college degree, some insurance companies require their agents to have certain certifications," says Espenschied. "The most common certification for insurance agents is the Certified Insurance Counselor (CIC) designation."
To earn a CIC designation, you must complete five CIC courses and pass five exams within five calendar years. You must also score 70% or better on a two-hour, essay-style exam.
Espenschied notes that in addition to the CIC designation, some states require insurance agents to have a license. "The requirements for obtaining a license vary from state to state," he says. "However, most states require agents to pass an exam and have a certain amount of insurance in the insurance industry."
Look into an internship.
Internships can give you valuable experience in the insurance industry, and they will also give you a sense of what your career as an insurance agent will be like. Internships are valuable opportunities to make connections within the insurance industry, and those connections may help you to eventually get a job as an agent.
"The best way for a student interested in becoming an insurance agent to find an internship is to contact local insurance companies," says Espenschied. "Many insurance companies offer internships to students who are interested in a career in the insurance company.
He explains that the most helpful types of internships are those that give students the opportunity to work with experienced agents. "These internships will give students the opportunity to learn about the different aspects of the insurance industry and how to sell insurance policies," he says.
Find a job as an insurance agent.
Insurance companies often advertise available insurance agent jobs through online job boards and through their websites. As an example, the Insurance Journal has a convenient online search. Connecting with the networks that you have developed through your college and through internships can also help you to learn of available opportunities.
Pursue a master's degree.
A career as an insurance agent doesn't require that you have a master's degree, but pursuing a master's may help you to advance your career. A master's degree in insurance management provides you with additional specialized knowledge and skills that you can use to further your career. Earning a master's also demonstrates to potential employers that you are personally invested in your career, and it may help you to qualify for advancements and raises.
Insurance agent degree and educational requirements
There are no specific degree and educational requirements for insurance agents, but many employers prefer to hire agents who at least have a bachelor's degree. Completing a bachelor's degree program in business, finance or economics can help to prepare you for your career.
What classes will I take?
The specific classes that you will take will partially depend on your degree program, but expect to take some or all of the following classes in most finance- or business-related programs:
Pursuing an additional certification or designation can help you to learn specialized skills for your career and may help you to qualify for advancement opportunities and raises. There are many different insurance agent certifications available, including these more common options.
Certified Risk Manager (CRM):
The Certified Risk Manager designation is offered by The National Alliance. You will need to complete five courses over 120 hours focused on how to help businesses prevent, reduce and avoid risk.
Certified Insurance Service Representative (CISR):
The Certified Insurance Service Representative designation is offered by The National Alliance. To earn the designation, you will complete courses focused on risk management techniques for working with individuals and businesses.
Accredited Adviser in Insurance (AAI):
The Institute offers the Accredited Adviser in Insurance designation. Earning the designation requires completing four classes focused on topics like how to assess and manage risk with insurance, how to use technological solutions to manage your business and how to better understand coverage solutions.
Certified WorkComp Professional (WCP):
The Certified WorkComp Professional program includes a focus on workers' compensation, including benefits, claims administration, cost containment strategies and methods for determining rates. It is offered by the Institute of WorkComp Professionals
Insurance agent jobs and career paths
As an insurance agent, you can explore many different specializations and career paths.
Life Insurance Agent: Life insurance agents specialize in life insurance policies and annuities. Life insurance agents rely heavily on marketing to generate a stream of new client prospects.
Health Insurance Agent: Health insurance agents specialize in health-related insurance policies. They may help clients sign up for coverage through healthcare exchanges, and may also help existing clients work with their healthcare insurance companies to get claims settled.
Property and Casualty Insurance Agent: Property and casualty insurance agents specialize in helping clients protect their physical property. They may sell policies to cover cars, homes and jewelry. These agents help clients to verify that they are choosing an insurance policy that meets their state's minimal auto coverage requirements. They may also help clients to navigate the claims process with their insurance companies.
Nine important traits and skills for insurance agents
Certain skills and traits can help to maximize your success as an insurance agent. A combination of hard skills and soft skills is essential for this career. While some of these skills can be learned through courses and on-the-job training, naturally possessing some of these skills will be helpful when considering a career as an insurance agent.
Communication skills:
Insurance agents need to be able to effectively communicate with their clients, including in person, over the phone and through email. "They need to be able to explain complex insurance policies in a way that their clients can understand," says Espenschied. Insurance agents also need to be able to carefully listen to their clients, picking up on small details and asking follow-up questions to get all of the information they need to be able to advise their clients.
Sales skills:
Espenschied explains that insurance agents need to be talented sellers and that they have to sell insurance policies to clients. "They need to be able to identify the needs of their clients and tailor their sales pitch accordingly," he says.
Customer service skills:
Excellent customer service skills are also essential for insurance agents. "They need to be able to answer their clients' questions, resolve their problems, and make sure they are satisfied with their insurance coverage," Espenschied explains.
People skills:
People skills are also important. In addition to strong communication and customer service abilities, insurance agents need to be able to listen and empathize with clients. An engaging, likable personality can help an agent quickly gain a new client's trust. An agent who genuinely enjoys working with people and who has a desire to help people will be at an advantage compared to an agent who doesn't genuinely enjoy building relationships with people.
Organizational skills:
Insurance agents also need to be highly organized. An agent often needs to manage marketing efforts, follow up with leads, schedule and manage a calendar of client appointments, process applications, and follow up on customer service inquiries and claims. Staying organized can help to prevent errors and ensure that clients get the responses they need.
Attention to detail:
The work that insurance agents perform requires extensive attention to detail. Agents work with complicated policies, and they need to make sure that the policies are a good fit for their customers. This requires considering multiple factors. Additionally, insurance agents may perform math calculations and need to take detailed notes when meeting with clients.
Marketing skills
Marketing skills are particularly important for insurance agents who work independently and are responsible for their own marketing. An understanding of marketing principles and messages, and the ability to perform and measure the return on marketing efforts can help an agent to maximize the effectiveness of their marketing.
Networking talents:
Networking can be an excellent way to learn about new job opportunities, but it can also help insurance agents to get new client referrals from other professionals. An agent with strong networking skills can build up a valuable network of professionals in insurance and related fields.
An ongoing desire to learn:
Perhaps most importantly, insurance agents need to have an ongoing desire to learn. The insurance industry changes quickly, and new tax laws and insurance laws can change how an agent needs to approach selling certain policies. An insurance agent should naturally be interested in the field and should have a desire to continue learning and improving their skills. Such a desire can give them a competitive advantage over other agents, and it can also help the agent to excel at their job and give their clients the best quality service possible.
What's the difference between an insurance agent and an insurance broker?
Insurance agents and insurance brokers both work with insurance policies, but there are some key differences between these two careers.
Insurance agents:
Represent one or more insurance companies
Sell insurance for a commission, may be employed by an insurance company or work independently
Can bind policies and can handle transactions from start to finish
Insurance brokers:
Represent consumers and can sell policies from multiple companies
Sell insurance policies for a commission
Can't bind coverage, and hand accounts over to an insurance agent for completion
Insurance agent salary and job outlook
Ever wonder how much does an insurance agent make? The U.S. Bureau of Labor Statistics reports that insurance agents earned a median annual wage of $59,080. Median annual wages also vary depending on the industry in which sales agents work. Sales agents specializing in health industry insurance earned a median annual wage of $82,690, while those specializing in travel earned $56,890. Here are the median annual wages for insurance agents by state:
Insurance Sales Agents
National data
Median Salary: $59,080
Projected job growth: 7.9%
10th Percentile: $34,940
25th Percentile: $43,440
75th Percentile: $83,420
90th Percentile: $134,420
Projected job growth: 7.9%
State data
State
Median Salary
Bottom 10%
Top 10%
Alabama
$60,790
$33,320
$141,720
Alaska
$49,970
$37,940
$76,120
Arizona
$58,900
$35,970
$129,980
Arkansas
$48,060
$30,800
$100,310
California
$63,400
$38,810
$161,230
Colorado
$60,860
$37,010
$128,640
Connecticut
$73,410
$43,370
$145,410
Delaware
$57,790
$31,590
$107,270
District of Columbia
N/A
N/A
N/A
Florida
$56,360
$34,740
$145,660
Georgia
$51,540
$30,600
$168,490
Hawaii
$58,690
$37,590
$127,310
Idaho
N/A
N/A
N/A
Illinois
$50,790
$37,600
$113,760
Indiana
$59,810
$35,920
$126,940
Iowa
$56,950
$33,100
$125,160
Kansas
$59,720
$37,080
$139,880
Kentucky
$51,100
$29,260
$114,010
Louisiana
$46,910
$30,080
$96,220
Maine
$62,030
$44,420
$129,440
Maryland
$62,570
$36,390
$99,290
Massachusetts
$77,320
$36,710
$200,130
Michigan
$58,880
$35,840
$127,870
Minnesota
$76,940
$45,120
$165,760
Mississippi
$47,140
$28,000
$90,620
Missouri
$54,760
$31,090
$128,730
Montana
$52,730
$36,890
$165,850
Nebraska
$57,580
$38,070
$106,440
Nevada
$45,320
$31,200
$76,360
New Hampshire
$58,880
$35,410
$109,270
New Jersey
$77,970
$48,790
$198,840
New Mexico
$47,750
$31,670
$161,780
New York
$79,240
$45,230
$194,030
North Carolina
$57,160
$34,050
$128,920
North Dakota
$65,840
$41,070
$123,870
Ohio
$59,990
$35,760
$125,370
Oklahoma
$47,000
$28,830
$106,710
Oregon
$54,250
$37,200
$118,090
Pennsylvania
$59,450
$37,140
$127,980
Rhode Island
$77,120
$40,670
$137,160
South Carolina
$47,680
$29,720
$105,100
South Dakota
$62,600
$40,960
$121,150
Tennessee
$47,930
$31,510
$105,300
Texas
$44,700
$29,170
$113,560
Utah
$48,300
$29,130
$123,690
Vermont
$62,770
$37,510
$117,290
Virginia
$59,550
$30,590
$148,850
Washington
$60,450
$39,670
$127,050
West Virginia
$42,980
$27,800
$102,210
Wisconsin
$62,420
$37,230
$131,970
Wyoming
$48,700
$33,470
$128,480
Source: U.S. Bureau of Labor Statistics (BLS) 2023 median salary; projected job growth through 2032. Actual salaries vary depending on location, level of education, years of experience, work environment, and other factors. Salaries may differ even more for those who are self-employed or work part time.
The job outlook for insurance agents is also promising, and is projected to grow by 7.9% from 2021 to 2031. That growth is about as fast as the projected growth for all occupations. The demand for insurance agents is expected to continue, since insurance companies need a steady stream of new customers in order to maintain their profits.
How to advance as an insurance agent
If you want to advance you career as an insurance agent, Espenschied recommends obtaining additional certifications. These certifications provide specialized education in certain elements of insurance sales and management, and they are an excellent way to make your resume stand out from other candidates. By investing in your career, certifications can also potentially help you to earn more money.
Espenschied notes that you may also want to eventually consider starting your own insurance agency. "This can be a great way to earn more money and have more control over your career," he explains. As an agency owner, you can decide on your specialty and your policy offerings, create your own marketing, develop your own client base and design your own business practices. You could also potentially hire a team as your business grows, expanding your client base and boosting your profits.
Stay connected
It's important to stay informed about new advancements in the insurance industry. These associations are excellent resources for insurance agents.
National Alliance for Insurance Education & Research: The National Alliance for Insurance Education & Research works to support professionals with education and technical guidance. The alliance offers many different educational options, including certifications, webinars and courses in risk management for insurance professionals.
National Association of Professional Insurance Agents: The National Association of Professional Insurance Agents promotes, protects and defends the interests of independent insurance agents. The association holds national events, affiliate events and webinars.
Insurance Information Institute: The Insurance Information Institute works to improve public understanding of insurance, and provides data-driven insights on insurance, podcasts and more.
Independent Insurance Agents & Brokers of America: The Independent Insurance Agents & Brokers of America is an alliance of business owners and employees who provide insurance-related products and services. The organization offers a large selection of services and resources, including conferences, a magazine and a virtual university.
Council of Insurance Agents and Brokers: The Council of Insurance Agents and Brokers is an association for commercial insurance agents. It offers market intelligence and insights, a Council Academy of professional development resources, leadership forums and conferences and more.
Latin American Association of Insurance Agencies: The Latin American Association of Insurance Agencies operates as a voice for independent insurance agent and is a network of agents, insurance firms and other companies. The association tracks legislative issues, provides members with training and continuous education seminars, brings industry leaders to speak during monthly member meetings and provides charitable community support.
National African American Insurance Association: The National African American Insurance Association is a network among people of color and others within the insurance industry. Chapters are located in each region of the country, and the association offers continuing education opportunities, career development opportunities, community initiative access, access to top trade industry associations and a national conference and summit.
