Start an insurance career: become an insurance agent

Start an insurance career: become an insurance agent

Find your passion in insurance work with this comprehensive tips-and-tricks guide.

Starting a career in the insurance field can be very rewarding! Start with a great business education, and there is no telling how far you can go in this field.

There are many different positions available in insurance, making it possible to find a role that suits everyone. If you are a people person, you can become a sales agent. If you prefer working behind the scenes, you can process claims. If you are good with computers, you work as an adjuster or provide clerical support. Alternatively, you can field client questions at a call center.

However, the most successful candidates in the insurance field are good with numbers, from actuaries to investigators and managers. In addition, legislation allows financial institutions to offer a wider range of products: insurance agencies can sell mutual funds, banks can sell retirement plans, and financial analysts can sell insurance. Therefore, having a strong aptitude for math is more important than ever in insurance work. Here is what you need to do to start an insurance career:

1. Obtain a relevant education. The first step in becoming an insurance professional is to build knowledge in the field. Some colleges offer a bachelor's degree in insurance, but professionals often pursue a related field such as economics, finance, accounting, marketing, or mathematics. While a college degree is not strictly required, it can give your career a strong jump-start. If you are good at math, have a natural talent for sales, and hold at least a high school diploma, you can still become an insurance professional.
2. Become licensed. You must obtain an insurance license for the state in which you intend to work. Depending on the state, licensure may involve completing a series of classes, attending a short program, or studying for and taking the exam independently. Consult your state government's website to determine exact requirements. Regardless of your location, you will need a separate license for each type of insurance you plan to sell, with property/casualty and life/health being the two most common areas.
3. Fulfill continuing education requirements. Even after becoming licensed, you must continue taking training classes to meet state continuing education requirements. The insurance field evolves quickly, making it vital to keep up with changing laws and codes.
4. Determine whether to join an agency or work independently. Most insurance agents work for an established agency employing anywhere from two to one hundred agents, or they start their own business. The advantages of business ownership are clear: you are your own boss, set your own policies and procedures, and often control your own hours. However, you are typically paid solely by commission (usually between 3% and 10% annually per policy), which can make sustaining a new business difficult at first. Insurance agencies generally provide a base salary in addition to commissions.
5. Find a job! Once you are licensed and have chosen your path, finding available positions is straightforward. Standard job boards like Monster and CareerBuilder can point you toward open roles, and you can also check classified ads. Another effective method is visiting the careers page of an insurance carrier such as American Family, State Farm, or Allstate, where you can find opportunities ranging from entry-level to management.

If you invest a little time in your insurance education and in learning how to run a business, you are sure to find yourself on a rewarding and exciting career path. And if the insurance field ultimately isn't for you, it still serves as a great stepping stone to various other finance-related industries!