Whether you’re an insurance sales agent or underwriter, you’ll likely work with all types of insurance from auto to life. Insurance sales agents are in the business of selling insurance. Also called “producers,” insurance sales agents sell life, property and casualty, disability, health, and long-term care. They work with businesses, families, and individuals to find the best policies to protect their property, lives, and health. Some insurance agents work with all types of insurance, while others specialize in one area.
Life insurance agents sell policies that pay beneficiaries when the policyholder dies. Health insurance agents sell health insurance policies that help cover the cost of medical care in the event of an accident, illness, or injury. Health insurance agents may also sell disability policies and dental insurance. Property and casualty insurance agents auto insurance to businesses and individuals, as well as property insurance policies that protect against loss due to theft, storms, fire, and vandalism.
Insurance sales agents have other tasks outside of selling. They provide financial planning services and advice on minimizing risk. They maintain records, prepare reports, generate new business, and settle insurance claims. Insurance sales agents work for one company. Independent insurance agents are brokers who work for several companies. Around 21 percent of insurance agents work for insurance carriers and 51 percent work for insurance agencies and brokerages. Twenty-two percent are self-employed.
Insurance underwriters calculate risk. They make the decision about who insurance companies should grant policies to and under what terms. Underwriters use advanced technology to analyze information provided by insurance applicants. This technology helps determine which types of risks are acceptable and won’t result in a loss. Once risk is established, underwriters prepare policies that cover the risks. Some companies are conservative in their underwriting activities while others are liberal. An insurance underwriter is expected to work under these guidelines, whether he agrees or not.
Qualifications for Insurance Jobs
To become an insurance sales agent, a college degree is preferred. Companies also prefer graduates that majored in economics, business, or finance. Some colleges offer insurance courses and others, such as Indiana State University and Ball State University, offer a bachelor’s degree in the field. Although a degree isn’t mandatory to become an insurance sales agent, a State-issued license is. Licensure requirements are determined on a state-by-state basis, but they require successful completion of insurance courses and a passing score on several exams.
Insurance sales agents average $45,430 per year (median). The middle 50 percent earn $33,070 to $68,730 per year. High earners average $113,930 per year. In addition to earning a good living as an insurance agent, job growth looks great. The industry expects to add 51,600 jobs over the next seven years, which is a 12 percent increase in job growth.
Becoming an Underwriter
Most companies prefer to hire college graduates for underwriting jobs. A degree in business administration or finance is preferred, but a bachelor’s degree in any field in addition to accounting and business law courses might get your foot in the door as well. Insurance underwriters average around $56,790 per year. The highest paid underwriters average around $99,940 per year. Although you can make a good living as an underwriter, job growth is down. The industry expects to lose 4,300 jobs over the next seven years.
For more information about insurance jobs, visit the Bureau of Labor Statistics at www.bls.gov.
