What Is An Insurance Broker? The Best Secret Tips

Step 1: Earn a BA in risk management, business, finance, economics or another related field.

Although it isn’t a requirement, if you know early on in life that this is a career you want to pursue, a bachelor’s degree can be very helpful. Potential clients and also brokerage companies will show preference to a broker with a degree. It might seem like just a piece of paper or a status symbol, but its uses extend far beyond that.

A bachelor’s degree in those particular subjects can give you an edge. You’ll have ingrained knowledge that a lot of your competitors may not have. Even if your bachelor’s degree is in a different subject, you’ll have skills such as research, public speaking, writing, and interpersonal skills under your belt.

If a four-year college is not realistic or accessible, even enrolling in a two-year program at a community college can helpfully refine these skills and knowledge of finance, economics, and risk management.

Step 2: Get an internship at a brokerage firm.

Whether you get your B.A. or not, an internship is a crucial step. This exposure to the industry will help you hone your work ethic and understand the structure of a brokerage firm. You will have an opportunity to observe and participate in the internal operations of the firm.

Generally, for internships, you will receive a written evaluation from your management. This evaluation can lead to a great recommendation letter moving forward. You will also be able to learn more about yourself through this process and your own strengths and weaknesses.

Step 3: Get your insurance broker’s license.

Once you feel you’re ready to take the plunge into the workforce, you need to get your license. Every state has different requirements depending on the type of insurance. Figure out whether you want to do life, personal, health, property and casualty insurance or a combination. Some states are no longer allowing brokers to pursue two or more types of licenses and requiring them to obtain a producer’s license instead.

You’ll typically need to pass an insurance broker exam. Make sure you study well in advance. Consider taking courses to supplement your independent study schedule.

Step 4: Find a job immediately.

At a brokerage firm, you will most likely start out as a broker’s assistant, unless you’ve had a long-term internship experience with glowing recommendations. Regardless of where you start, you need to work your way up in order to reach a point where you’ll be trusted with high-profile clients and receive higher commissions.

Start applying for work the day you receive your license. The process of getting from your entry level gig to a high-paid insurance broker job is a steep climb and it would serve you best to start right away.

Step 5: Obtain an Insurance Broker Certification.

For career advancement, you’ll need certification in an area of insurance where you’ve acquired expertise. The National Alliance for Insurance Education and Research offers a number of voluntary certifications for independent agents or brokers. These include:

Certified Insurance Counselor (CIC)
Certified Insurance Service Representative (CISR)
Health Insurance Association (HIA) certificate from America’s Health Insurance Plans (AHIP)
Certified Risk Manager (CRM)
 Certified Financial Planner Board of Standards offers the Certified Financial Planner (CFP)

Once you have completed all of these steps, you will find yourself receiving abundant opportunity as an insurance broker.