Definition of "Insurance Broker"
An insurance broker sells insurance policies, such as life insurance or motor vehicle insurance, and represents multiple insurance agencies. Dealing with an insurance broker gives clients the advantage of comparing multiple insurance rate quotes simultaneously. Insurance brokers may also sell business insurance policies, such as short-term disability insurance.
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Education/Training
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Insurance brokers may find more job opportunities available to them if they pursue a bachelor's degree and major in an area like finance or business, according to the U.S. Bureau of Labor Statistics. Companies may pair newly hired insurance brokers with a mentor who provides on-the-job training. An insurance broker may elect to attend insurance seminars or courses that focus on government insurance regulations, sales techniques and tax laws.
Licensing
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In order to legally sell life, health, property or casualty insurance, an insurance broker must complete the licensing requirements set forth by the state the broker wishes to work in. Licensing requirements may include the completion of insurance courses and the successful completion of a state administered written exam. After obtaining licensure, an insurance broker may need to complete continuing education courses to keep the license active. An insurance broker who wants to expand his service offering may pursue Series 6 or Series 7 licensing requirements. A broker who passes the Series 6 licensing exam can also offer mutual fund products to clients. Insurance brokers who pass the Series 7 licensing exam can legally offer and sell general security products to clients in addition to insurance.
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Working Conditions
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Insurance brokers can arrange their work schedule so that it coincides with time periods that are convenient for customers and may include night or weekend appointments. An insurance broker who represents multiple insurance agencies may spend the bulk of her time meeting with potential clients and preparing insurance policy paperwork.
Income
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Insurance brokers working in the United States as of May 2009 earned an average yearly income of $61,330 and reported average hourly wages of $29.28, according to the U.S. Bureau of Labor Statistics. As of May 2009, insurance brokers who worked in states like California, Massachusetts, New Jersey, New York and Rhode Island received the highest amount of monetary compensation with salaries ranging from $71,630 to $80,280, according to the U.S. Bureau of Labor Statistics.
Potential
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The U.S. Bureau of Labor Statistics expects job opportunities for insurance brokers to grow by 12 percent from 2008 through 2018. Brokers who are fluent in more than one language may experience more success in advertising to and servicing clients who do not speak English as their first language.
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References
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