Global Insurance Industry Overview
According to Statista, the global insurance industry is worth more than 5 trillion U.S. dollars. The insurance industry employs millions of people in various kinds of job roles. Some of the most common ones are:
- Insurance agent
- Customer service representative
- Insurance broker
- Risk consultant
- Insurance adjuster
- Underwriter
All the different job roles are equally important in an insurance company. There are always three parties in insurance: the insured, the insurer, and the insurance agent or broker. While insurance agents are more common, insurance brokers are more preferred by the client base.
How To Become An Insurance Broker
Becoming an insurance broker is not as easy as it sounds. You must complete pre-licensing requirements like coursework, biometrics, and an exam before you can become licensed in your state of choice. Depending on what type of license or licenses you want, the rules are different for each state.
Brokers are generally there to cater to a client’s needs. Hence, most brokers aren’t tied to insurance companies. You are free to think and act in your client’s best interest and work for your personal profit.
Here are some simple steps to become an insurance broker:
- Research on your state requirements
- Enroll and complete coursework
- Submit biometrics
- Take the exam
- Submit application
- Get insurance broker band
After your fingerprint is verified and you pass your exam, you will become an insurance broker.
Finding Your Niche as an Insurance Broker
After you are a licensed insurance broker, we would recommend you find your niche. Finding your niche can depend on many things, such as your interest or the market trend in the area you live in. One of the most popular niches to get into as an insurance broker is car insurance.
Car Insurance Broker vs Car Insurance Agent: Who Makes More?
Car insurance brokers and car insurance agents are similar in the sense that they both receive a commission for selling car insurance. The difference between the two is that a car insurance brokers can sell policies from multiple agencies while an agent only sells one agency’s policy.
According to salary.com, the average salary of an insurance broker in the state of New York is expected to be over $186,434 per year in 2023.
How to Become a Car Insurance Broker?
If you’ve decided to become a car insurance broker, you’ve made a wise career decision. Insurance brokers have rewarding careers assisting clients in the selection of insurance coverage. Working as a car insurance broker can be done from home or in an office. To become one, you must complete a series of educational and licensing requirements.
How Does a Car Insurance Broker Make Money?
If you are considering becoming a car insurance broker, you ought to know how you will be making money. Most people are unaware that as a car insurance broker, you cannot bind coverage for an insurer even though you provide the best car insurance policies for individual or business needs.
You will be making money off commissions from selling any type of car insurance to individuals and businesses where commission ranges based on many things. Brokers sell all types of insurance and aren’t just limited to car insurance. This includes health care, homeowner’s policy, accident plan as well as life and annuity policies.
Tips For Car Insurance Brokers to Make More Money
If you are a car insurance broker who is looking to make more money, here are some well-researched tips for you:
- Understand Your Clients
- Providing Exceptional Customer Service
- Networking
- Partner With Car Companies
- Use Digital Marketing Tools
Insurance Companies To Work With
Even though your primary job is to work for your client’s interest, it’s also important to know which companies are reliable and will provide you a better margin for commissions. Here are some companies that you should work with as a car insurance broker:
- Amica Mutual
- USAA
- Auto-Owners Insurance Group
- The Hartford
- Renegade Insurance
- MetLife
- State Farm
- All State
- Nationwide
- GEICO
Conclusion
According to Statista, there are more than 400 thousand people working in the insurance sales industry. And this number is only projected to go up. As a car insurance broker, you need to have an extra edge that makes you stand out from the crowd. If you are looking to be represented by a team of professionals to change your sales game, make sure you add your listing on our insurance directory.
