Role of an Insurance Advisor

Insurance advisers work in offices large and small.

Insurance advisers or "agents" held more than 400,000 jobs in 2008. These sales and service professionals may represent one or more insurance companies and are trusted by millions of consumers each year. According to the bureau of labor statistics, most insurance companies prefer to hire college graduates for these roles, while many other advisers join the profession after leaving other careers. Job seekers who become insurance agents are responsible for complying with licensing regulations and insurer underwriting guidelines while meeting their customer's demands for high quality service.

Protect Clients' Assets

Insurance policies are designed to protect policy holders from financial ruin when losses occur. Insurance advisers use their expertise to adequately insure or "cover" their clients' assets. This coverage can include, but may not be limited to home, car, health and life insurance. Agents can be held responsible for inadequately insuring their clients, and should purchase errors and omissions insurance from a commercial carrier.

Manage Compliance

Insurance advisers are licensed by their respective states. Each state has its own insurance department, which is responsible for monitoring the compliance of the agents in its jurisdiction. Advisers must renew their licenses on time, obey the insurance laws in their states, and manage their firm's financial assets in an acceptable manner. Failure to do so could result in the suspension or permanent revocation of the agent's license.

Perform Consultations

Consumers rely on insurance advisers to explain their insurance coverage and related investment products. As a result, insurance advisers should be comfortable discussing the complex legal terminology found in an insurance contract. These professionals must explain the various options available to clients during the sales process. For instance, an auto coverage adviser should explain the benefits and restrictions of liability, comprehensive, collision, and under-insured motorist coverage to their clients. He or she should recommend commercial auto insurance when appropriate and the adviser may be required to reject a client's application for insurance if it is determined that the policy would violate the insurer's underwriting guidelines.

Act as an Intermediary

Insurance advisers simultaneously represent their clients and the companies for which they sell. For instance, agents are often faced with the difficult task of finding insurance coverage for high risk clients. They must adequately cover hard-to-insure clients while minimizing the potential risk to the companies they represent. They must also provide timely, caring and efficient service to clients when claims occur while maintaining their allegiance to insurers as they seek to settle the claim in a financially conservative manner. Therefore, insurance advisers should be skilled communicators with keen negotiating skills.

Sales and Service

Many insurance advisers work on commission and are responsible for generating new business. When they acquire new customers, they must process the monthly payments and paperwork needed. These tasks are often repeated throughout the life of the insurance policy. As a result, insurance advisers should be organized, efficient, and able to maintain a high level of accuracy. They must be self-motivated, friendly, and customer focused.

References

• BLS: Insurance Sales Agents