what is an insurance broker?
As an insurance broker, you are a licensed financial advisor who helps people find insurance products that meet their needs. You assist clients with assessing risks and determining which assets require insurance. With access to various insurance products from different providers, you can identify suitable policies and advise clients on special conditions or situations that must be addressed.
Aside from identifying insurance products, you help clients determine the appropriate level of coverage. You provide information on policies, including costs, benefits, and exclusions, to help identify suitable policies. You also arrange coverage with chosen insurers and act on behalf of your client during the claim process.
Insurance brokers work for companies and firms that provide consultancy services on insurance products. You advise clients from various industries and help them obtain the right insurance products for their needs.view vacancies
average insurance broker salary
If you're considering a career as an insurance broker, it's important to understand the potential earnings. As a starting point, entry-level positions typically offer a compensation package of $70,000 per year. With experience and advanced education, professionals in this field can earn up to $90,000 annually. It's worth noting that salary can vary based on factors like education level, location, and company size. Overall, a successful career as an insurance broker can result in an annual income of $80,000.
what factors affect the salary of an insurance broker?
The salary of insurance brokers is based on their level of skill and experience. If you have minimal experience, you will earn less than someone who has been working in the field for longer. Additionally, having certain qualifications, such as a licence, can lead to a higher salary. The types of insurance policies you sell also affect your earnings, with high-value products earning you commissions. Lastly, your location can impact your salary, with metro areas typically offering higher pay than smaller cities.
types of insurance brokers
Some of the types of insurance brokers include:
- commercial insurance brokers: as an insurance broker, you sell insurance products that cover an entire franchise. If a company has multiple potential risks, you find an insurance product that covers employees and business assets. Commercial insurance offers an overarching package from a single insurance provider.
- independent insurance brokers: sometimes, you work on behalf of a specific insurance provider. However, an independent insurance broker is not tied to any company or insurance provider.
- car insurance brokers: as an insurance broker, you find suitable options for clients who want vehicle insurance. You identify the insurance package that suits clients based on the available options.
- health insurance brokers: as a health insurance broker, you help clients identify the best medical insurance for their needs. You offer various insurance products from various providers and help clients identify the health insurance suitable for their needs.
working as an insurance broker
Are you interested in working as an insurance broker? Let’s explore the duties and responsibilities of an insurance broker.
education and skills
You require academic qualifications to become an insurance broker, including:
- vocational education and training: to become an insurance broker, pursue a course in a VET college, like a Certificate III in financial services, to prepare you for entry-level duties. Alternatively, complete a diploma in insurance broking that takes 12 months.
- licence and work experience: gain work experience by working under a licensed insurance broker.
insurance broker skills and competencies
Some of the qualities of an insurance broker include the following:
- communication skills: as an insurance broker, it's important to have strong communication skills, including verbal and written abilities, as well as active listening skills. You should also be able to read non-verbal cues. Communication is a key part of the job, as you'll need to explain risks and policy details to clients, while also listening carefully to their needs and concerns.
- customer service skills: as an insurance broker, building relationships with clients and insurance providers is crucial for success. Developing strong customer service skills is essential to being approachable and empathetic towards clients' needs. By utilising these skills, you can establish lasting connections with clients and insurance providers, and ultimately offer the best insurance products available.
- patience: as an insurance broker, you sell insurance products to clients. The role requires patience and persistence. While some clients quickly decide on the insurance products they require, some need more conviction. Patience helps you explain the terms of the insurance policies and help clients make informed decisions.
- ability to learn quickly: as an insurance broker, you have diverse insurance products to offer clients. You require an in-depth understanding of the insurance products to explain the options to clients. Your ability to learn quickly helps you understand how the policies operate and troubleshoot problems.
- research skills: as an insurance broker, you require exceptional research skills. When new insurance products are introduced to the market, you identify their requirements and benefits. Your research skills are also useful for identifying insurers and insurance products.
FAQs about working as an insurance broker
Here, you will find the answers to the most frequently asked questions about the profession of an insurance broker.