A high school diploma and insurance classes are the basic requirements to become an insurance agent. Most companies provide on-the-job training, and you must pass licensing exams from your state and understand the common types of policies, such as health, life, property and liability insurance. A college degree can be helpful, especially for gaining promotions, but a willingness to learn is the basic requirement for a career as an insurance agent.
Insurance companies typically teach new hires how to work with clients and how the agencies do business. Often they assign a new agent to work alongside an experienced salesperson as a shadow. Some insurance companies offer formal classes or online instruction for new personnel.
Internships and co-ops are available for college students and graduates at some insurance companies. The idea is that if these work out well, the companies will then hire the interns as permanent employees.
Meeting Licensing Requirements
In most states, you must complete a specific course of study before taking licensing exams. In some states, you take different classes depending on the type of insurance you wish to sell. For example, Georgia requires taking a class on property or accident insurance, while in Pennsylvania, agents must complete 24 hours of general insurance study to become licensed.
You typically must fulfill additional state requirements, such as a background check and fee payment, before passing exams to receive your license.
The College Advantage
A college degree or college coursework, while not mandatory, can improve your prospects for advancement. Classes in business, economics, sales and public speaking are helpful, and provide the skills you'll need for management jobs.
Some colleges offer an insurance major within the business department, including classes in liability and property insurance. Classes in the major may also cover risk management, pension planning, policy coverage, pricing and workers' compensation.
Continuing Education and Certifications
Insurance companies typically encourage sales agents to continue their education. For example, companies may provide instruction on new products, coaching on sales methods and Web seminars. Most states also require continuing education for licensing. Qualifying topics may include ethics, consumer protections and insurance policies.
Optional certifications are available from the American College of Financial Services and The Institutes. The classes required for these certifications may count as continuing education to renew your license.
Some insurance agents take additional licensing exams to sell securities. These exams are available from the Financial Industry Regulatory Authority, or FINRA.
Desirable Personal Characteristics
An outgoing personality, self-confidence and sales skills are essential for a career as an insurance agent. You need the ability to take initiative to contact customers "cold" and convince them to purchase policies. You must be a careful listener to meet customers' needs, and an able communicator to explain the advantages of different types of policies. Deciding what policy is right for each customer also requires analytical skills.
Prospects and Pay
The Bureau of Labor Statistics expects a 10 percent increase in jobs for insurance agents between 2012 and 2022 -- about the same as the expected 11 percent increase for all jobs. The BLS notes that additional positions will open up because some agents quit when they can't meet their earnings expectations.
Many agents receive at least part of their pay as commissions or bonuses. Agents' wages averaged $63,730 annually in 2014, according to the BLS.
The BLS expects the best prospects for insurance agents with superior sales skills who are licensed to sell both insurance and financial products. Fluency in a second language is also a plus.
- Bureau of Labor Statistics: Occupational Outlook Handbook -- Insurance Sales Agents
- The Princeton Review: Insurance Agent/Broker
- Aflac: Training
- BigFuture: Major: Insurance
- U.S. News: Insurance Agent
- Insurance License Express: Geogia Insurance License Requirements
- Pennsylvania Insurance Department: Before You Apply
- Great American Insurance Group: College Students and Graduates
- Bureau of Labor Statistics: Occupational Employment and Wages, May 2014: Insurance Sales Agents
- Photo Credit Siri Stafford/Digital Vision/Getty Images
Auto Insurance Agent Training
Being an insurance agent can be a great opportunity for those who enjoy sales, and have good people skills and a good...
Insurance Broker Vs. Insurance Agent
There are a number of ways to research and buy new insurance: you can use an agent, go directly to the insurance...
How to Find a Good Insurance Agent
In general, there are two types of insurance agents - independent agents who write for more than one company and contract agents...
How to Become an Auto Insurance Agent
The auto insurance business has experienced steady growth. For those individuals who enjoy sales, this can be a good career choice. However,...
How to Become an Insurance Agent in Pennsylvania
The Pennsylvania Insurance Department administers licensing programs for insurance agents. Insurance producers (agents) in Pennsylvania can obtain a license to sell life...
How to Become an Independent Insurance Agent in Texas
Becoming an insurance agent is a professional career regulated by the Texas Department of Insurance (TDI). An insurance license is required to...
How to Become a North Carolina Insurance Agent
North Carolina seeks to protect the public by requiring insurance license applicants to learn and demonstrate knowledge of state insurance law. North...
The Benefits of Being an Insurance Agent
Insurance agents can take personal satisfaction in helping to protect the public's well-being and security through sales of products such as life,...