How to Become an Insurance Agent

Become Team
Become Team
Updated November 9, 2021

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5 Steps to Becoming an Insurance Agent

Step 1
Decide if you want to complete an associate or bachelor's degree program.
A college education can help experienced agents move into careers in risk management, working as actuaries, or other positions that require postsecondary education. Plus, having a background in business and finance can be a tremendous asset to agents.
Step 2
Pick a specialty.
Agents sell many different kinds of insurance, such as property, casualty, disability and personal lines of insurance. These are referred to as “lines of authority” in the industry. Agents must receive licensure for their particular line of authority. Knowing what type of insurance you want to sell is an important step in the career path.
Step 3
Complete pre-licensure requirements.
Pre-licensure requirements vary from state to state, but they are a mandatory step toward earning licensure as an insurance agent or broker. For example, California applicants for casualty licensure must complete 20 hours of general pre-licensing education, as well as 12 hours of education in the state's ethics and insurance codes. Students should check with their state's insurance department for pre-licensure requirements.
Step 4
Pass a licensing exam.
All agents must pass a licensing exam to sell insurance. The National Insurance Producer Registry has compiled a list of state-specific licensing requirements, associated fees and other important data about the licensing process.
Step 5
Apply at insurance agencies.
Agents who have met all the requirements and earned licensure are eligible for employment at insurance agencies and brokerages, which can vary from small local brokerages to regional offices of well-known insurance carriers.

FAQ on Becoming an Insurance Agent

Many entry-level insurance agents learn the duties of the job by working alongside more experienced agents. Following are some of the most frequently asked questions by new and aspiring insurance agents:

1. Where can I find out about pre-licensure and licensure requirements in my state?

Each state has an insurance board or commission that can help applicants determine the mandatory requirements in their state. The American Council of Life Insurers provides a list of all 50 state insurance departments on its website.

2. Are there any continuing education requirements to maintain my license?

Yes. Changes in federal insurance laws, insurance benefits programs and other areas can impact client's needs. Most state insurance boards require agents and brokers to complete continuing education courses to keep abreast of these changes to maintain their licensure. The Institutes Risk & Insurance Knowledge Group provides a list of each state's continuing education requirements for a wide range of common industry certifications.

3. Are there additional career options once I've earned licensure as an insurance agent?

Yes. Insurance agents – especially those who have completed bachelor degree programs – often move on to more advanced careers. These include working as insurance underwriters, actuaries, cost estimators, appraisers, claims adjusters or in risk assessment and risk management.

4. Should I join an insurance industry trade association?

Definitely. There are dozens of industry trade organizations that provide members with discounts on continuing education, educational resources, opportunities for professional development and networking, and regional and national conferences where agents can mingle with like-minded peers. These resources can be an important avenue for career growth.

5. What are some of the most important skills needed to succeed in this career?

Agents need to be highly analytical so they can assess their client's needs. They should be excellent communicators to discuss which policies meet client's needs and why. They need to be self-starters and actively find new clients and build a book of business to keep commissions flowing. Lastly, they need to have the self-confidence to call potential clients and discuss the benefits of buying new or additional lines of insurance.

Insurance Agent Salary & Job Growth

Wages for insurance agents are typically tied to commissions, which can account for a wide discrepancy in pay. Wages also vary greatly depending on an agent's skills, specialties and experience.

According to the Bureau of Labor Statistics, median annual salaries for insurances sales agents was just under $50,000 in 2017. However, the top 10 percent of agents earned more than $125,000 annually, while the bottom 10 percent took home just over $27,000.

Payscale.com places median wages for entry-level agents at just over $33,000 annually, while more experienced agents earn approximately $42,000 per year. Late-career professionals and agents with skills in customer relations, account sales and management all can potentially earn more.

The following chart shows mean annual wages and employment data by state for insurance agents:

Alabama

Currently Employed: 5,560

Change in Employment (2016-2026): 10.70%

Amount: Mean wage annual: $78,860

Alaska

Currently Employed: 530

Change in Employment (2016-2026): 2.80%

Amount: Mean wage annual: $60,910

Arizona

Currently Employed: 7,500

Change in Employment (2016-2026): N/A

Amount: Mean wage annual: $64,430

Arkansas

Currently Employed: 2,880

Change in Employment (2016-2026): 9.80%

Amount: Mean wage annual: $59,890

California

Currently Employed: 39,920

Change in Employment (2016-2026): 12.30%

Amount: Mean wage annual: $77,700

Colorado

Currently Employed: 9,880

Change in Employment (2016-2026): 21.10%

Amount: Mean wage annual: $65,030

Connecticut

Currently Employed: 6,110

Change in Employment (2016-2026): 6.30%

Amount: Mean wage annual: $77,300

Delaware

Currently Employed: 1,020

Change in Employment (2016-2026): 11%

Amount: Mean wage annual: $66,450

Florida

Currently Employed: 33,000

Change in Employment (2016-2026): 19.10%

Amount: Mean wage annual: $67,140

Georgia

Currently Employed: 12,160

Change in Employment (2016-2026): 12.10%

Amount: Mean wage annual: $62,290

Hawaii

Currently Employed: 930

Change in Employment (2016-2026): 9.80%

Amount: Mean wage annual: $63,670

Idaho

Currently Employed: 1,820

Change in Employment (2016-2026): 26.70%

Amount: Mean wage annual: $61,590

Illinois

Currently Employed: 13,350

Change in Employment (2016-2026): 12.20%

Amount: Mean wage annual: $66,080

Indiana

Currently Employed: 9,590

Change in Employment (2016-2026): 8.10%

Amount: Mean wage annual: $60,860

Iowa

Currently Employed: 6,480

Change in Employment (2016-2026): 21.30%

Amount: Mean wage annual: $58,340

Kansas

Currently Employed: 4,020

Change in Employment (2016-2026): 13.40%

Amount: Mean wage annual: $61,620

Kentucky

Currently Employed: 4,440

Change in Employment (2016-2026): 10.70%

Amount: Mean wage annual: $53,370

Louisiana

Currently Employed: 6,200

Change in Employment (2016-2026): 8.40%

Amount: Mean wage annual: $48,880

Maine

Currently Employed: 1,890

Change in Employment (2016-2026): -0.90%

Amount: Mean wage annual: $50,090

Maryland

Currently Employed: 7,010

Change in Employment (2016-2026): 11%

Amount: Mean wage annual: $63,450

Massachusetts

Currently Employed: 6,490

Change in Employment (2016-2026): 8.70%

Amount: Mean wage annual: $87,700

Michigan

Currently Employed: 11,040

Change in Employment (2016-2026): 11.40%

Amount: Mean wage annual: $65,760

Minnesota

Currently Employed: 6,670

Change in Employment (2016-2026): 10.70%

Amount: Mean wage annual: $82,760

Mississippi

Currently Employed: 3,130

Change in Employment (2016-2026): -5%

Amount: Mean wage annual: $55,050

Missouri

Currently Employed: 8,700

Change in Employment (2016-2026): 10.20%

Amount: Mean wage annual: $57,260

Montana

Currently Employed: 1,440

Change in Employment (2016-2026): 13.40%

Amount: Mean wage annual: $64,660

Nebraska

Currently Employed: 3,480

Change in Employment (2016-2026): 9.30%

Amount: Mean wage annual: $60,940

Nevada

Currently Employed: 3,290

Change in Employment (2016-2026): 22.60%

Amount: Mean wage annual: $61,420

New Hampshire

Currently Employed: 1,440

Change in Employment (2016-2026): 8.30%

Amount: Mean wage annual: $62,630

New Jersey

Currently Employed: 9,820

Change in Employment (2016-2026): 4.10%

Amount: Mean wage annual: $75,900

New Mexico

Currently Employed: 1,240

Change in Employment (2016-2026): 14.90%

Amount: Mean wage annual: $47,970

New York

Currently Employed: 20,000

Change in Employment (2016-2026): 3.70%

Amount: Mean wage annual: $87,220

North Carolina

Currently Employed: 10,840

Change in Employment (2016-2026): 13.10%

Amount: Mean wage annual: $66,110

North Dakota

Currently Employed: 1,240

Change in Employment (2016-2026): 20.50%

Amount: Mean wage annual: $63,310

Ohio

Currently Employed: 15,820

Change in Employment (2016-2026): 6.20%

Amount: Mean wage annual: $61,060

Oklahoma

Currently Employed: 4,260

Change in Employment (2016-2026): 12.20%

Amount: Mean wage annual: $56,630

Oregon

Currently Employed: 4,100

Change in Employment (2016-2026): 11.70%

Amount: Mean wage annual: $60,440

Pennsylvania

Currently Employed: 14,870

Change in Employment (2016-2026): 6.40%

Amount: Mean wage annual: $82,790

Rhode Island

Currently Employed: 1,330

Change in Employment (2016-2026): 7.10%

Amount: Mean wage annual: $61,520

South Carolina

Currently Employed: 6,490

Change in Employment (2016-2026): 9.30%

Amount: Mean wage annual: $55,150

South Dakota

Currently Employed: 1,850

Change in Employment (2016-2026): 9.90%

Amount: Mean wage annual: $64,760

Tennessee

Currently Employed: 7,550

Change in Employment (2016-2026): 11.40%

Amount: Mean wage annual: $57,730

Texas

Currently Employed: 32,660

Change in Employment (2016-2026): 21.80%

Amount: Mean wage annual: $56,550

Utah

Currently Employed: 4,080

Change in Employment (2016-2026): 32.80%

Amount: Mean wage annual: $55,580

Vermont

Currently Employed: 830

Change in Employment (2016-2026): 7.70%

Amount: Mean wage annual: $68,970

Virginia

Currently Employed: 9,900

Change in Employment (2016-2026): 9.40%

Amount: Mean wage annual: $63,700

Washington

Currently Employed: 8,030

Change in Employment (2016-2026): 4.70%

Amount: Mean wage annual: $58,990

West Virginia

Currently Employed: 1,820

Change in Employment (2016-2026): 2%

Amount: Mean wage annual: $47,200

Wisconsin

Currently Employed: 8,260

Change in Employment (2016-2026): 10.40%

Amount: Mean wage annual: $74,450

Wyoming

Currently Employed: 630

Change in Employment (2016-2026): 16.30%

Amount: Mean wage annual: $46,520

Employment of insurance agents is expected to increase by 10 percent through 2026, the BLS reports. That translates into about 50,000 new positions during that time span. Demand is expected to be greatest for independent agents as large insurance organizations place more emphasis on these agents to help control their costs.

Although insurance agents play a key role in the industry, many consumers in today's highly connected world perform online research and purchase policies on their own, which has reduced demand for new agents. Still, online shoppers typically have regular interaction with agents to help fully understand their policies, make changes, file claims, and other routine business.

Job prospects are expected to be best for college-educated agents and agents with excellent sales, customer service and communications skills, as well as for multilingual agents who can serve a wider customer base.

Finding an Insurance Agent Program

As noted, insurance agents aren't required to complete formal degree programs to work in the field. They are, however, required to complete pre-licensure training to develop core competencies in regards to the insurance products they will sell to their clients. Agents can complete these requirements through a number of online service providers, or they can attend regional training facilities certified through their state's insurance department. Key points to consider when researching pre-licensure programs include delivery method, length and cost.

Remember that each insurance product – property, casualty, life, etc. – requires certification. There is no blanket certification that allows agents to sell every insurance product. Agents should know what type of product they'll work with, as well as the state in which they'll work prior to beginning pre-licensure training to ensure they meet the licensure requirements in their home state.

Agents who choose to enroll in associate or bachelor's degree programs to potentially boost their career opportunities can use the search tool below to help find appropriate degree programs in their home state.

Top 10 Insurance Agent Associations & Groups

Membership in insurance agent associations and industry trade groups can help insurance agents in numerous ways. These organizations offer opportunities for professional development, help agents stay abreast of important industry news and events, and provide an important voice of advocacy in legislative and regulatory issues. They also can lead to key networking opportunities, which is an important business development tool for insurance agents and brokers – relationship building has long been a key tenet of the insurance industry.

Insurance agents should consider membership or attending the national conferences of one or more of the following organizations:

There are many other specialty insurance and related trade associations in the U.S. as well. The Insurance Risk Management Institute offers a comprehensive list of insurance organizations on its website.

Additional Resources for Insurance Agents

The leading insurance industry trade groups provide a wealth of resources that support agents and can help broaden their career opportunities. Here are some additional resources insurance agents can access:

Related Careers at a Glance

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Become Team
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