Insurance Brokers Vs Insurance Agents

An insurance agent is someone who sells, promotes, or advises insurance to a potential customer. Some agents work directly with companies, while others represent many different insurance companies and/or brokers. A person who is interested in becoming an insurance agent should have at least a bachelor’s degree in business or a related field, as many states require a specified number of working years in order to be licensed to sell insurance. You may find more details about this at Miller Hanover Insurance

Once licensed, insurance agents can work in an independent manner, or they can work for a particular insurance company. They typically make up a small percentage of the overall sales staff of the insurance agency. In either case, agents have the opportunity to work with individuals and families to purchase policies. For example, they may be responsible for selling policies to homeowners or renters to cover the cost of damage, loss, or loss. Alternatively, brokers can work for large companies that do not employ direct employees, but rather require their agents to market their products to customers on their behalf.

There are two distinct ways that an insurance agent can make money: directly by selling policies and earning a commission on them, or indirectly through some sort of compensation program. In either situation, the agent will receive a percentage of the premium every time a policy is sold by a customer. In order to receive a commission, the agent has to get paid either by a percentage of the premium paid by each customer or by some other means. While this method is often considered the more “commercially viable” method, the fact is that there are far more advantages to working as an insurance agent when compared to the alternative.