How to Become an Insurance Broker

Insurance Broker

An insurance broker is an intermediary between clients and insurance companies. They act on behalf of the client and attempt to find the best-fitting insurance policy for them. They also work with the client throughout their entire journey with the insurance company.

Insurance brokers work with clients and insurance companies. They represent their clients and approach different insurance agencies on their behalf, looking for the best insurance deal. 

There are two main types of insurance brokers. Retail insurance brokers arrange policies including house, pet, travel, or motors, for individuals. Commercial insurance brokers cover high-value products or services in industries like marine, oil and gas, and aviation. 

The duties of an insurance broker include:

  • Talking to clients, assessing their needs when it comes to insurance. 
  • Considering a vast spectrum of companies and looking at one, or a small shortlist, they can offer for clients.
  • Negotiating with insurance underwriters to find the best-priced insurance. 
  • Going through insurance policies with clients to make sure that they understand the terms. 
  • Working on an annual basis with clients and recommending upgrades or renewals. 
  • Advising clients regarding claims. 
  • Ensuring that clients are aware of risk management and how to reduce these risks. 
  • Networking to gain new clients. 

Having a degree in finance, accounting, or business is beneficial. There are graduate training schemes available, which can be a fantastic kick start to somebody’s career. However, many employers are more interested in skills and personal attributes than formal qualifications. 

If a candidate has no degree and not a massive amount of experience, they could enter the role as a junior or trainee broker or an insurance technician. Once they are working in the field, they can progress and get some insurance industry qualifications. 

Apprenticeships on the scheme are available. They will train candidates up on insurance-related legal issues and give them a solid understanding of the industry. Prospective insurance brokers should thoroughly research any companies that have given them a job offer, as different companies can vary wildly with their ethos and employment prospects.

To become an insurance broker, it would be beneficial for candidates to seek out work experience with a broking house or an insurance company. Some offer summer internships or smaller firms may accept candidates who reach out directly to them. Experience working in a customer service role is also advantageous. 

There is a varied skill set that candidates should demonstrate when becoming an insurance broker. They should be very confident, as they will be talking to lots of people and analysing their business offerings. They should be able to communicate with clients and other businesses and maintain friendly yet professional relationships with both.

Numerical skills are essential for insurance brokers, as they should be able to work with finances. Having a solid business and commercial awareness, as well as knowledge in the field in which they are selling insurance, is significantly important.

Insurance brokers will be dealing with multiple clients at once, so they should be flexible and able to manage their time and prioritise particular tasks over others. They must work well both in a team and solo. 

Insurance firms employ insurance brokers. The firms could be niche, small businesses or large, multinational corporations. In smaller companies, they will have a more general role, whereas in larger companies they may work with a team and specialise in a specific area. 

Insurance brokers will be mainly office-based, but they may also visit their clients in person. There are opportunities in both cities and large towns, and some foreign travel may be included in international firms. 

Experienced insurance brokers could move into a specialist sector. They could become an insurance account executive, claims broker, risk manager, or technical broker. Many insurance brokers eventually progress into more senior roles and have a team working under them.

What degree is most commonly held by an Insurance Broker ?

  • Diploma in Financial Services
  • BA Finance
  • Bachelor of Accounting

Career Transportability across Countries

Transportability: Medium
  Some firms are international, providing candidates with a potential opportunity to work overseas. However, these placements are often temporary. To gain a permanent position in another country, a candidate may need to re-train and learn about the cultural differences between their country of employment and their native country. As this is a customer-focused role, they will also be expected to speak the local language.

What is the Salary of an Insurance Broker ?

Experience Average salary | year
Insurance Broker 1-3 yrs $23,000 £24,000 $22,166
Insurance Broker 3-5 yrs $30,000 £40,000 $32,500
Insurance Broker 5-10 yrs $35,000 £50,000 $40,000

What skills are needed to become an Insurance Broker ?

  • Insurance
  • Customer Service
  • Commercial Insurance
  • General Insurance
  • Sales
  • Management
  • Property & Casualty Insurance
  • Liability
  • Risk Management
  • Brokers
  • Underwriting
  • Leadership
  • Professional Liability
  • Microsoft Office
  • New Business Development
  • Claims Management
  • Business Development
  • Legal Liability
  • Account Management
  • Insurance Brokerage
  • Marketing
  • Negotiation
  • Microsoft Excel
  • Claim
  • Life Insurance

Insurance Broker

As insurance brokers should have a good awareness of everything to do with the insurance industry, taking some extra courses is beneficial. At FutureLearn, we have plenty of relevant courses, including personal lines insurance introduction.

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