Insurance sales agents held about 475,900 jobs in 2018. The largest employers of insurance sales agents were as follows:
| Insurance agencies and brokerages | 61% |
| Self-employed workers | 12 |
| Direct insurance (except life, health, and medical) carriers | 9 |
| Direct health and medical insurance carriers | 5 |
Most insurance sales agents work in offices, although some may spend time traveling to meet with clients.
Work Schedules
Some sales agents meet with clients during business hours and then spend evenings doing paperwork and preparing presentations to prospective clients. Most agents work full time and some work more than 40 hours per week.
Although most employers only require agents to have a high school diploma, many agents have a bachelor’s degree. Agents must be licensed in the states where they work.
Education
A high school diploma is the typical requirement for insurance sales agents, although a bachelor’s degree can improve one’s job prospects. Public-speaking classes can be useful in improving sales techniques, and often agents will have taken courses in business, finance, or economics. Business knowledge is also helpful for sales agents hoping to advance to a managerial position.
Training
Insurance sales agents learn many of their job duties on the job from other agents. Many employers have new agents shadow an experienced agent. This practice allows the new agent to learn how to conduct the company’s business and to understand how the agency interacts with clients.
Because changes in tax laws, government benefits programs, and other state and federal regulations can affect clients’ insurance needs and the way in which agents conduct business, employers often expect agents to take continuing professional education courses. Agents can enhance their selling skills and broaden their knowledge of insurance and other financial services by taking courses at colleges and universities or by attending conferences and seminars sponsored by insurance organizations.
Licenses, Certifications, and Registrations
Insurance sales agents must have a license in the states where they work. Separate licenses are required for agents to sell life and health insurance and property and casualty insurance. In most states, licenses are issued only to applicants who complete specified courses and who pass state exams covering insurance fundamentals and state insurance laws. Most state licensing authorities also require agents to take continuing education courses focusing on insurance laws, consumer protection, ethics, and the technical details of various insurance policies.
As the demand for financial-planning services increases, many agents also choose to get licensed and certified to sell securities and other financial products. Licensing and certification requires substantial study time to pass an additional exam—either the Series 6 or Series 7 licensing exam, both of which are administered by the Financial Industry Regulatory Authority (FINRA). The Series 6 exam is for agents who want to sell only mutual funds and variable annuities. The Series 7 exam is the main FINRA series license, which qualifies agents as general securities sales representatives.
A number of organizations offer certifications that show an agent’s expertise in insurance specialties. These certifications are not required for employment, but they can give job candidates an advantage over other applicants. Certifications also can be a source of continuing education credit. For details on specific designations, contact The Institutes and The American College of Financial Services .
Insurance sales agents typically have an interest in the Helping, Persuading and Organizing interest areas, according to the Holland Code framework. The Helping interest area indicates a focus on assisting, serving, counseling, or teaching other people. The Persuading interest area indicates a focus on influencing, motivating, and selling to other people. The Organizing interest area indicates a focus on working with information and processes to keep things arranged in orderly systems.
If you are not sure whether you have a Helping or Persuading or Organizing interest which might fit with a career as an insurance sales agent, you can take a career test to measure your interests.
Insurance sales agents should also possess the following specific qualities:
Important Qualities
Analytical skills. Insurance sales agents must evaluate the characteristics of each client to determine the appropriate insurance policy.
Communication skills. Insurance sales agents must be able to communicate effectively with customers by listening to their requests and suggesting suitable policies.
Initiative. Insurance sales agents need to actively seek out new customers to maintain a flow of commissions.
Self-confidence. Insurance sales agents should be confident when making “cold” calls (calls to prospective customers who have not been contacted before). They must speak clearly and persuasively and maintain their composure if rejected.
The median annual wage for insurance sales agents was $50,940 in May 2019. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $28,000, and the highest 10 percent earned more than $125,500.
In May 2019, the median annual wages for insurance sales agents in the top industries in which they worked were as follows:
| Direct health and medical insurance carriers | $65,180 |
| Direct insurance (except life, health, and medical) carriers | 54,110 |
| Insurance agencies and brokerages | 49,000 |
Many independent agents are paid by commission only. Sales workers who are employees of an agency or an insurance carrier may be paid in one of three ways: salary only, salary plus commission, or salary plus bonus.
In general, commissions are the most common form of compensation, especially for experienced agents. The amount of the commission depends on the type and amount of insurance sold and on whether the transaction is a new policy or a renewal. When agents meet their sales goals or when an agency meets its profit goals, agents usually get bonuses. Some agents involved with financial planning receive a fee for their services rather than a commission.
Some sales agents meet with clients during business hours and then spend evenings doing paperwork and preparing presentations to prospective clients. Most agents work full time and some work more than 40 hours per week.
Employment of insurance sales agents is projected to grow 10 percent from 2018 to 2028, faster than the average for all occupations.
Because the profitability of insurance companies depends on a steady stream of new customers, the demand for insurance sales agents is expected to continue. Employment growth will likely be strongest for independent sales agents as insurance companies rely more on brokerages and less on captive agents as a way to control costs.
Many clients do their own Internet research and purchase insurance online. This practice somewhat reduces demand for insurance sales agents because many purchases can then be made without an agent’s services. However, agents will still be needed to interact with clients to help them understand their options and choose a policy that is right for them. Many customers lack the time or expertise to study the different types of insurance to decide what they need and will continue to rely on advice from insurance sales agents.
Agencies are also implementing “marketing automation,” a set of software tools that allow agents to maintain contact with their clients more efficiently. Although this is expected to improve insurance sales agents’ productivity, it is not expected to substantially reduce employment demand. Agents will still be needed to reach out to new, prospective clients and sell different insurance policies.
Job Prospects
College graduates who have sales ability, excellent customer-service skills, and expertise in a range of insurance and financial services products are likely to have the best prospects. Multilingual agents may have an advantage, because they can serve a wider customer base. In addition, insurance terminology is often technical, so agents who have a firm understanding of the relevant technical and legal terms also should be desirable to employers.
Many beginning agents fail to earn enough from commissions to meet their income goals. These agents may eventually transfer to other careers. Many job openings are likely to result from the need to replace agents who leave the occupation or retire.
For more information about insurance sales agents, visit
National Association of Professional Insurance Agents
Insurance Information Institute
For more information about insurance sales agents in the healthcare industry, visit
National Association of Health Underwriters
For more information about certifications, visit
The American College of Financial Services
For more information about securities licensure, visit
Financial Industry Regulatory Authority (FINRA)
Information about insurance sales agent licensure is available from state insurance department websites.