How to Be Insurance Agent - Job Description, Skills, and Interview Questions

Feb 25, 2020 / 5 Minutes Read / By Albert

How to Become

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The cost of health insurance has been steadily increasing over the years, causing a strain on individuals and families alike. As insurance premiums rise, more and more people are turning to insurance agents, who can provide guidance and advice to help them select the best plan for their particular needs and budget. An insurance agent can help people compare plans and explain the different types of coverage available, so they can make an informed decision.

In addition, they can provide expert advice on how to lower costs and maximize coverage. By utilizing the services of an insurance agent, individuals and families can feel confident that they are making the right choice when it comes to their health care coverage.

Steps How to Become

Research the Requirements. Research the licensing requirements for insurance agents in your state. Requirements vary by state, but may include completing pre-licensing education courses, passing a licensing exam and undergoing a background check.
Complete Pre-Licensing Education. Most states require insurance agents to complete pre-licensing education courses. These courses cover topics such as insurance law, regulations, and different types of insurance policies.
Pass the Licensing Exam. After completing the pre-licensing courses, you must take and pass a licensing exam. This exam is usually administered by the state's insurance department or a third-party testing agency.
Obtain a State License. Once you have passed the licensing exam, you can apply for a state license. This involves submitting an application to the state's insurance department and undergoing a background check.
Find an Insurance Carrier. After obtaining a state license, you must find an insurance carrier to work with. This can involve contacting different insurance companies or working with an agency that can help match you with an insurance carrier.
Complete Ongoing Education Requirements. Most states require insurance agents to complete continuing education courses in order to maintain their license. These courses are typically offered through trade associations or insurance companies.

In order to stay ahead and efficient, an insurance agent should set achievable goals, stay organized, and leverage technology. Setting achievable goals will help an agent stay on track and prioritize their tasks. Staying organized can help an agent stay productive and keep up with their daily tasks.

Finally, leveraging technology can help an agent automate mundane tasks such as filing paperwork and help them stay on top of industry updates. By taking these steps, an insurance agent can stay ahead and efficient while still delivering exceptional service to their customers.

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Job Description

Create plans to meet customers insurance needs
Explain and demonstrate insurance policies to customers
Research and develop insurance coverage options
Utilize sales techniques to identify potential customers
Quote prices and explain policy coverage
Provide customer service for existing policyholders
Process applications, renewals, and payments
Negotiate with insurance companies to get the best rates
Stay up-to-date on changes in the insurance industry
Maintain customer records and files

Skills and Competencies to Have

Knowledge of underwriting principles and insurance regulations
Ability to research and evaluate risks
Strong customer service and communication skills
Knowledge of insurance products and services
Ability to develop and implement marketing and sales strategies
Understanding of the claims process
Ability to analyze financial data and make informed decisions
Proficiency with computers and software programs
Organizational and time management skills
Knowledge of state, federal and industry-specific laws and regulations

Being an insurance agent requires a diverse set of skills in order to be successful. One of the most important skills an insurance agent must possess is the ability to listen carefully and effectively communicate with clients. This skill is essential for helping clients understand their insurance needs, as well as for providing them with the best coverage options for their particular situation.

it is also important for insurance agents to be able to explain complex insurance concepts in a simple and clear manner. In order to maximize their success, they must also have strong problem-solving skills and be able to think quickly and strategically. Finally, it is also important for insurance agents to have a comprehensive understanding of the insurance market in order to suggest the best policies and plans that suit the needs of their clients.

Having these skills will not only help insurance agents provide better service but will also increase their customer base and overall profitability.

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Frequent Interview Questions

What experience do you have in the insurance industry?
What types of insurance policies are you most familiar with?
Have you ever handled a large claim or dispute resolution?
How do you stay current on changes in the insurance industry?
What strategies do you use to ensure customer satisfaction?
How do you develop relationships with new clients?
Tell me about a time when you had to explain a complicated insurance concept to a customer.
What do you think is the biggest challenge facing the insurance industry today?
Describe a successful sales pitch you have used in the past.
What do you enjoy most about working in the insurance industry?

Common Tools in Industry

Client Relationship Management (CRM) Software. A database used to store information and manage customer relationships. (Eg: Salesforce, HubSpot)
Sales Tracking Software. Software used to track and analyze sales performance. (Eg: InsightSquared, Pipedrive)
Email Marketing Software. Software used to create and send email campaigns. (Eg: Mailchimp, Constant Contact)
Social Media Management Software. Software used to manage social media accounts and campaigns. (Eg: Hootsuite, Sprout Social)
Lead Generation Software. Software used to generate leads from various sources. (Eg: Leadfeeder, LeadPages)
Analytics Software. Software used to measure and analyze marketing performance. (Eg: Google Analytics, Mixpanel)
Quote/Proposal Software. Software used to create and manage quotes and proposals. (Eg: PandaDoc, Qwilr)
Phone System Software. Software used to set up and manage phone systems. (Eg: RingCentral, Ooma)

Professional Organizations to Know

National Association of Professional Agents (NAPA)
Independent Insurance Agents & Brokers of America (IIABA)
National Association of Insurance and Financial Advisors (NAIFA)
American Society of Certified Insurance Counselors (ASCIC)
National Association of Health Underwriters (NAHU)
The National Alliance for Insurance Education & Research (NAIER)
Society of Certified Insurance Service Representatives (CISR)
Professional Liability Underwriting Society (PLUS)
Big I Professional Liability Program (IPLP)
Chartered Property Casualty Underwriter Program (CPCU)

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Common Important Terms

Insurance Policy. A contract between an insurance company and a policyholder, in which the insurer agrees to provide coverage for specific losses in exchange for payment of a premium.
Risk Management. The process of identification, assessment, and prioritization of risks to an organization and its employees, followed by implementation of measures to minimize, monitor and control the risk.
Broker. An individual or firm that acts as an intermediary between a buyer and a seller, or between an insurer and an insured, for a commission or fee.
Underwriting. The process of evaluating an insurance application and determining the terms of the policy and premium rates.
Claims Adjuster. A person employed by an insurance company to investigate and evaluate claims made against the company.
Reinsurance. The transfer of part or all of the risk of an existing policy from one insurer to another insurer.

Frequently Asked Questions

What qualifications does an insurance agent need?

An insurance agent needs to have a license issued by their state's insurance department, which typically requires passing an insurance exam and completing approved pre-licensing education.

How does an insurance agent get paid?

Insurance agents typically receive a commission from the insurance companies they represent, based on the policies they sell.

What type of insurance can an insurance agent help with?

An insurance agent can help with a variety of types of insurance, including auto, home, life, health, and business insurance.

What is E&O insurance?

E&O insurance stands for errors and omissions insurance, which is a type of professional liability insurance that helps protect an insurance agent from losses stemming from negligent acts, errors, or omissions in the performance of their professional services.