Insurance Broker V/S Insurance Agent: What’s the Difference?

Often, we can see how insurance agents and the insurance brokers are considered the same in the insurance world.  

But is that really the case?  

Here’s the thing you need to know. 

Do they have similarities? Yes.  

Firstly, they both need to have an appropriate insurance license to sell it. Second, they both act as intermediaries.  

But having said this, does it make an insurance agent and an insurance broker the same thing? 

Well, the answer is no.  

Although they have commonalities, they tend to differ on certain grounds.

 

What makes them different from one another? 

Let us get into the details to find out.  

The main factor that differentiates an insurance broker from an insurance agent is – who they represent.  

What is an Insurance Broker? 

In the words of Insureon, an insurance agent sells a company’s products that the agent is representing. On the other hand, an insurance broker is a professional who represents their clients.  

An insurance broker’s primary goal is to serve their clients’ best interest! And they do so by working with multiple insurance companies to search for the best insurance policy that meets their clients’ needs. According to Educba, there are mainly two types of insurance brokers – retail and wholesale. 

Right from understanding the clients’ situation, to providing the insurance policy that best caters to their needs – a broker’s duty revolves around its clients.  

With the general idea of it now covered, let’s take one step further from the basics.

As an agent, you know how crucial it is to be familiar with the insurance market to become successful. The same goes out for an insurance broker as well.  

They need to learn about the insurance market inside out if they wish to thrive.  

That is why, for this, there are certain key elements to be considered by them. And according to Learn, one of them is –

 

How to Become an Insurance Broker? 

Let’s know the steps to it, shall we?

Number 1. Earn an Academic Qualification 

To have an educational qualification is not mandatory to become a licensed broker. But getting a degree in fields like insurance, finance, or economics surely makes it a plus point!

Why?

It helps to prepare them for licensing exams. To add upon, it increases the chances of becoming attractive to brokerage firms.

 

Number 2. On-the-Job Training is a must!  

Getting on-the-job training is always a bonus.

For the obvious reasons that it makes you proficient in the field that you’re trying to excel. The more you involve yourself in learning during the training, the more experience you gain for yourself.

 

 

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Number 3. Obtain an Insurance Broker License  

To qualify as one, you need to get a broker’s license from the state where you plan to work. For this, you need to pass an insurance broker exam, like the series six or the series seven offered by the Financial Industry Regulatory Authority.

 

Number 4. Find A Job!

Finding a job for yourself would be step number four. The sooner you are familiar with the insurance market, the better! 

It would help if you got involved with the area of the field you wish to work on as much as you can. It could be customer service rep, personal line rep, or any lines you’re interested in for that matter.

 

Number 5. Obtain the Insurance Broker Certification 

If you wish to develop yourself professionally, you need to consider getting a certificate where you’ve acquired your expertise. As per Learn, The National Alliance for Insurance Education and Research provides different certifications for the brokers.

Now that you know what it is and how to become one, maybe you should consider your career in it as well!

 

What’s your take on it? 

What are your thoughts on who is an insurance broker, and how to become one? Comment below and let us know.

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Schedule a call right now and learn how you can ease your work, sell more, and increase your profits!