What Is an Insurance Agent?

What Is an Insurance Agent?

By Charles Joseph | Editor, Financial Affairs
Reviewed by Corey Michael | Senior Financial Analyst

An insurance agent is a professional who works as an intermediary between insurance companies and clients. They sell insurance policies that align with an individual’s or business’s insurance needs. These policies can range from life, property, health, to automobile insurances. An insurance agent can work independently or be employed by an insurance company. Their main role includes new client acquisition, policy renewal management for existing clients, and helping clients to settle their insurance claims.

Related Questions

1. What skills do you need to become an insurance agent?

An insurance agent has to be good at communicating and understanding people’s needs. They need to be knowledgeable about different types of insurance policies and options. Basic math skills are also a must for calculating premiums and payouts. Furthermore, a good insurance agent has excellent sales and negotiation skills.

2. Can insurance agents work from home?

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Yes, insurance agents can work from home. However, they might also need to travel to meet clients or attend networking events. With the digital transformation of the industry, many agents now operate remotely, connecting with clients over phone or digital platforms.

3. How do insurance agents earn money?

Insurance agents earn money by selling insurance policies. They receive a commission on every policy they sell, and often, they also receive a smaller, ongoing commission for as long as a client keeps a policy active.

4. What is the difference between an insurance agent and a broker?

While both help clients get insurance coverage, insurance agents usually work for a specific insurance company and sell only that company’s products. On the other hand, insurance brokers are independent entities that can sell insurance products from multiple companies, offering their clients more options.

5. Is becoming an insurance agent a good career choice?

Choosing a career as an insurance agent can be rewarding if you enjoy sales and meeting new people. It offers flexible work hours, good earning potential through commissions, and the opportunity to help people safeguard their future. However, like any profession, it also has its challenges, like dealing with policy cancellations and claims disputes.