Salaries of Health Insurance Brokers
The health insurance industry is one of the largest in the nation. A majority of Americans rely on health insurance through private companies that provide coverage for themselves and their families. However, with so many options, these families usually need the help of a health insurance broker. These agents help clients decide what kind of coverage they need based on their incomes, health conditions and other factors. Health insurance brokers have a variety of career options, and a range of salaries to accompany each career path.
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Average Nationwide Salaries
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According to the United States Bureau of Labor Statistics, health insurance agents earned about $61,330 a year in 2009. Starting wages in lower paying positions were less than $25,800 a year in the bottom 10th percentile. Those in the top 10th percentile earned more than $114,910 a year. Most insurance brokers reported incomes ranging from $32,810 and $69,540 annually. The commission-based system of payment may be part of the reason for the wide range in wages.
Income by Location
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Cost of living, demand for insurance agents and overall economic conditions may influence salaries from state to state. In South Dakota, agents only made $44,010 a year, well below the national figure. Louisiana and South Carolina also reported lower wages, averaging from $45,000 to $45,980. On the other side of the payscale, states like New York, New Jersey and California, all known for higher costs of living, reported much higher than average incomes for insurance sales brokers, averaging $71,630 to $76,520 a year. The annual mean wage for insurance agents in Rhode Island in 2009 was $80,280 according to the bureau report. This was the highest of any state.
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Wages by Employer
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In 2009, the vast majority of health insurance brokers worked for private insurance agencies and firms, and averaged $61,660 a year. Depository credit intermediation firms also employed agents, but at a much lower wage of $49,290 per year. Some industries provided higher wages, such as real estate offices, which paid $63,380 a year. However, companies that specialized in management, scientific and technical consulting reported the highest salaries of any employers. Health insurance brokers there could expect to earn $72,190 a year.
Qualifications
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Most agents have obtained a minimum of a bachelor's degree, commonly in business, economics or finance. Some also focus on psychology, sociology and public speaking, as they must know how to convince clients to make purchases. All states require agents to be licensed, and those specializing in health insurance may have to obtain a separate certification. As with many professions, experience is the most influential qualification when it comes to salaries, as insurance brokers often work on commission.
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References
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