Career Facts

Investigate MORE INFO on all professions that sound interesting. Take your time. Don't skip a step.

Job Outlook: 10% (Faster than average)

  1. Is WHAT YOU DO enjoyable?
  2. Does the WORK ENVIRONMENT feel comfortable?
  3. Are you ok with THE REQUIREMENTS?
  4. Is the PAY ENOUGH?
  5. Is the JOB OUTLOOK positive- more than 7%?
  6. Still interested? WATCH THE VIDEO
  7. RELATED OCCUPATIONS Click here to view similar jobs.
FIND A JOB and more.

What Insurance Sales Agents Do About this section

Insurance sales agents
Insurance sales agents commonly sell one or more types of insurance, such as property and casualty, life, health, and long-term care.

Insurance sales agents contact potential customers and sell one or more types of insurance. Insurance sales agents explain various insurance policies and help clients choose plans that suit them.

Duties

Insurance sales agents typically do the following:

  • Call potential clients in order to expand their own customer base
  • Interview prospective clients to get information about their financial resources and discuss existing coverage
  • Explain the features of various policies
  • Analyze clients’ current insurance policies and suggest additions or other changes
  • Customize insurance programs to suit individual clients
  • Handle policy renewals
  • Maintain electronic and paper records

Insurance sales agents commonly sell one or more types of insurance, such as property and casualty, life, health, and long-term care insurance.

Property and casualty insurance agents sell policies that protect people and businesses from financial loss resulting from automobile accidents, fire, theft, and other events that can damage property. For businesses, property and casualty insurance also covers workers’ compensation claims, product liability claims, or medical malpractice claims.

Life insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies. Life insurance agents also sell annuities that promise a retirement income.

Health and long-term care insurance agents sell policies that cover the costs of medical care and assisted-living services for senior citizens. They also may sell dental insurance and short-term and long-term disability insurance.

Agents may specialize in selling any one of these products or function as generalists providing multiple products.

An increasing number of insurance sales agents offer their clients—especially those approaching retirement—comprehensive financial-planning services, including retirement planning and estate planning. In addition to offering insurance, these agents may become licensed to sell mutual funds, variable annuities, and other securities. This practice is most common with life insurance agents who already sell annuities, but many property and casualty agents also sell financial products.

Many agents spend a lot of time marketing their services and creating their own base of clients. They do this in a variety of ways, including making “cold” sales calls to people who are not current clients.

Potential clients often use comparison shopping tools online to learn about different policies and get information from insurance companies. Clients can either purchase a policy directly from the company’s website or contact the company to speak with a sales agent.

Insurance agents also find new clients through referrals by current clients. Keeping clients happy so that they recommend the agent to others is a key to success for insurance sales agents.

Insurance agents may work for a single insurance company or an insurance brokerage.

Captive agents are insurance sales agents who work exclusively for one insurance company. They can only sell policies provided by the company that employs them.

Independent insurance agents work for insurance brokerages, selling the policies of several companies. They match insurance policies for their clients with the company that offers the best rate and coverage.

Work Environment About this section

Insurance sales agents
Most insurance sales agents work in offices, although some may spend much of their time traveling to meet with clients.

Insurance sales agents held about 523,200 jobs in 2021. The largest employers of insurance sales agents were as follows:

Insurance agencies and brokerages 61%
Self-employed workers 14
Direct insurance (except life, health, and medical) carriers 8
Direct health and medical insurance carriers 5

Most insurance sales agents work in offices, although some may spend time traveling to meet with clients.

Work Schedules

Some sales agents meet with clients during business hours and then spend evenings doing paperwork and preparing presentations to prospective clients. Most agents work full time and some work more than 40 hours per week.

How to Become an Insurance Sales Agent About this section

Insurance sales agents
Agents must be licensed in the states where they plan to work.

Insurance sales agents are typically required to have a high school diploma to enter the occupation. However, employers may prefer to hire candidates who have a bachelor’s degree. Agents must be licensed in the states where they work.

Education

A high school diploma is typically required for insurance sales agents. However, postsecondary coursework in communications and psychology may be useful for improving sales techniques. Some employers prefer to hire candidates who have a bachelor’s degree in a field such as business. Knowledge of business is also helpful for sales agents hoping to advance to a managerial position. 

Training

Insurance sales agents learn many of their job duties on the job from other agents. Many employers have new agents shadow an experienced agent. This practice allows the new agent to learn how to conduct the company’s business and to understand how the agency interacts with clients.

Because changes in tax laws, government benefits programs, and other state and federal regulations can affect clients’ insurance needs and the way in which agents conduct business, employers often expect agents to take continuing professional education courses. Agents can enhance their selling skills and broaden their knowledge of insurance and other financial services by taking courses at colleges and universities or by attending conferences and seminars sponsored by insurance organizations.

Licenses, Certifications, and Registrations

Insurance sales agents must have a license in the states where they work. Separate licenses are required for agents to sell life and health insurance and property and casualty insurance. In most states, licenses are issued only to applicants who complete specified courses and who pass state exams covering insurance fundamentals and state insurance laws. Most state licensing authorities also require agents to take continuing education courses focusing on insurance laws, consumer protection, ethics, and the technical details of various insurance policies.

As the demand for financial-planning services increases, many agents also choose to get licensed and certified to sell securities and other financial products. Licensing and certification requires substantial study time to pass an additional exam—either the Series 6 or Series 7 licensing exam, both of which are administered by the Financial Industry Regulatory Authority (FINRA). The Series 6 exam is for agents who want to sell only mutual funds and variable annuities. The Series 7 exam is the main FINRA series license, which qualifies agents as general securities sales representatives.

A number of organizations offer certifications that show an agent’s expertise in insurance specialties. These certifications are not required for employment, but they can give job candidates an advantage over other applicants. Certifications also can be a source of continuing education credit. For details on specific designations, contact The Institutes and The American College of Financial Services.

Important Qualities

Analytical skills. Insurance sales agents must evaluate the needs of each client to determine the appropriate insurance policy.

Communication skills. Insurance sales agents must be able to communicate effectively with customers by listening to their requests and suggesting suitable policies.

Initiative. Insurance sales agents need to actively seek out new customers in order to maintain a flow of commissions.

Self-confidence. Insurance sales agents should be confident when making “cold” calls (calls to prospective customers whom they have not contacted before). They must speak clearly and persuasively and maintain their composure if rejected.

Pay About this section

Insurance Sales Agents

Median annual wages, May 2021

Sales representatives, services

$60,550

Insurance sales agents

$49,840

Total, all occupations

$45,760

 

The median annual wage for insurance sales agents was $49,840 in May 2021. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $29,970, and the highest 10 percent earned more than $126,510.

In May 2021, the median annual wages for insurance sales agents in the top industries in which they worked were as follows:

Direct health and medical insurance carriers $70,570
Direct insurance (except life, health, and medical) carriers 57,990
Insurance agencies and brokerages 48,830

Many independent agents are paid by commission only. Sales workers who are employees of an agency or an insurance carrier may be paid in one of three ways: salary only, salary plus commission, or salary plus bonus.

In general, commissions are the most common form of compensation, especially for experienced agents. The amount of the commission depends on the type and amount of insurance sold and on whether the transaction is a new policy or a renewal. When agents meet their sales goals or when an agency meets its profit goals, agents usually get bonuses. Some agents involved with financial planning receive a fee for their services rather than a commission.

Some sales agents meet with clients during business hours and then spend evenings doing paperwork and preparing presentations to prospective clients. Most agents work full time and some work more than 40 hours per week.

Job Outlook About this section

Insurance Sales Agents

Percent change in employment, projected 2021-31

Sales representatives, services

7%

Insurance sales agents

6%

Total, all occupations

5%

 

Employment of insurance sales agents is projected to grow 6 percent from 2021 to 2031, about as fast as the average for all occupations.

About 52,700 openings for insurance sales agents are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

Employment

Because the profitability of insurance companies depends on a steady stream of new customers, the demand for insurance sales agents is expected to continue. Employment growth will likely be strongest for independent sales agents as insurance companies rely more on brokerages and less on captive agents in an effort to control costs.

Many clients do their own research and purchase insurance online, which reduces demand for an insurance sales agent’s services. However, agents will still be needed to help clients understand their options and choose a policy that is right for them. Many customers lack the time or expertise to study the different types of insurance to decide what they need and so they will continue to rely on advice from insurance sales agents.

Employment projections data for insurance sales agents, 2021-31
Occupational Title SOC Code Employment, 2021 Projected Employment, 2031 Change, 2021-31 Employment by Industry
Percent Numeric

SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program

Insurance sales agents

41-3021 523,200 556,200 6 32,900 Get data

Contacts for More Information About this section

For more information about insurance sales agents, visit

National Association of Professional Insurance Agents

Insurance Information Institute

For more information about insurance sales agents in the healthcare industry, visit

National Association of Health Underwriters

For more information about certifications, visit

The Institutes

The American College of Financial Services

For more information about securities licensure, visit

Financial Industry Regulatory Authority (FINRA)

Information about insurance sales agent licensure is available from state insurance department websites.

O*NET

Insurance Sales Agents

Video