An insurance agent is a professional who represents one or more insurance companies and sells their policies, usually for a commission. They work with clients to understand their budget and insurance coverage needs, and then help them find a policy that provides the right amount of coverage at an affordable price. Insurance agents perform a wide array of duties to help clients, such as working with them to develop a suitable coverage plan, assisting them in completing the required forms to enroll in an insurance policy, periodically consulting with them to ensure their coverages are up to date and continue to address their circumstances, and helping them file and settle insurance claims. Insurance agents work in many industries, including life, auto, and health.
There are two types of insurance agents: captive and independent agents. Captive agents work exclusively for one insurance company and can sell only the policies and products that company offers, while independent agents can represent multiple companies and typically try to find insurance policies that offer the best coverage for their clients. Regardless of which type of agent you choose, they are obligated to act in good faith in helping you find the best policy for your needs.
Insurance agents are licensed professionals who help individuals and companies obtain life, health, or property insurance policies and other insurance products, including different types of annuities. They may specialize in a certain area, such as property and casualty insurance, which protects businesses against lawsuits and property losses. Insurance agents also handle marketing and administrative duties, such as promoting themselves and developing a business plan.
To become an insurance agent, employers typically require that agents have a high school diploma, although they may prefer to hire agents who have a bachelor’s degree. Agents must be licensed in the states where they work. The median annual wage for insurance sales agents was $57,860 in May 2022, and employment of insurance sales agents is projected to grow 8 percent from 2022 to 2032, faster than the average for all occupations.
