Insurance Broker Salary And Job Description [2021]

An insurance broker is a sales representative that sells various types of insurance including life, health, auto, home and causality insurance. They interview new clients and promote products that they are trying to sell.

Insurance Broker Salary

The average insurance broker salary in the United States is currently $63,000 per year or an hourly salary of $30.

This will depend on how well you do, the policies you sell, the percentage of commission you earn, your education and experience among other things. Location is very important when it comes to the amount that an insurance broker can expect for salary. There are several states that offer a higher insurance broker salary than the norm. These states include New York, California, Pennsylvania, Massachusetts and Rhode Island. In New York and California the average insurance broker wage is about $75,000 per year or an hourly income of $36. Pennsylvania is another state that has a very good insurance broker pay rate. In PA, the average salary is $77,000 per year or $37 an hour. In Massachusetts the average insurance broker salary is $80,000 per year or $39 an hour. The top insurance broker salary can be found in Rhode Island. In Rhode Island the hourly salary is $39 and the yearly salary is $81,000.

Insurance Broker Description

The main job of an insurance broker is to sell insurance policies to prospective clients on the behalf of insurance companies.

This may include:

  • Life, health, accidental, fire, flood, property, medical and other types of insurance policies.
  • They interview prospective clients to determine their needs and their finances and discuss any existing coverage.
  • They may need to investigate the condition of what is to be insured.
  • They call current policyholders to deliver policies to them or advise of any adjustments that should be made to the current policy. They make requested changes for policyholders.
  • They find new clients by generating lead lists and by networking through other clients and businesses.
  • They customize insurance policies to meet each individual clients needs.
  • They explain the features of each policy and promote the sale of policies.
  • They ensure policy requirements are met and include any necessary tests such as medical exams or forms that need to be filled out. 
  • They may inspect property or decide if it is too risky to insure.
  • They calculate premiums and establish payment periods and methods. Insurance brokers perform other clerical tasks such as maintaining records, setting up appointments and callbacks and handling policy renewals.

Insurance Broker Education

There are no formal requirements needed in order to become an insurance broker. However, a high school diploma is needed. More than thirty percent of insurance brokers have a bachelor’s degree in finance, business or economics although it is not required. Additionally many brokers have taken business, sales and finance classes that will help them develop better sales pitches. Some have also take classes in public speaking and customer relations to further their skills. On the job training is provided once you are hired. This includes working with a seasoned broker and learning the way the business works in addition to useful job skills and tools. Insurance brokers must be licensed and certified in the states that they plan to sell insurance in. Licensing will require taking courses and passing an exam. Separate courses and certifications are provided for life and health insurance and for property and casualty insurance.

Continuing education courses are required every two years to maintain licenses. Certifications are also available to show expertise in a field of insurance. This is not a requirement but may increase your salary and job opportunities.

Insurance Broker Work Environment

The work environment for an insurance broker can vary. It will include working in an office setting and also requiring traveling to other areas to meet with policyholders and prospective clients. Brokers generally sell insurance for several different insurance companies at one time although some may work for one company exclusively. Brokers typically work alone and must have good speaking skills along with advanced sales and personal skills. The work schedule for brokers varies since they make their own hours. They often work at night so that they can meet with clients at the time that is best for them. This often includes working more than forty hours per week and working nights and weekends on a regular basis.

Insurance Broker Outlook

Insurance brokers have the chance to make as much money as they want too. This is due to commissions and other benefits that they may receive if they sell a lot of  policies. Currently there are more than 412,000 insurance brokers employed today. Brokerages are seeing a great amount of expansion in the next few years. There is an expected twenty two percent increase in the job market. This means that there will be an additional 90,000 jobs added to the job market for insurance brokers.

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