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Broker vs insurance broker

The differences between brokers and insurance brokers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a broker has an average salary of $124,861, which is higher than the $94,006 average annual salary of an insurance broker.

The top three skills for a broker include brokerage, financial services and insurance products. The most important skills for an insurance broker are customer service, life insurance products, and lead generation.

Broker vs insurance broker overview

BrokerInsurance Broker
Yearly salary$124,861$94,006
Hourly rate$60.03$45.20
Growth rate5%6%
Number of jobs2,77038,403
Job satisfaction--
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 64%
Average age4946
Years of experience--

What does a broker do?

Brokers can either be a firm or an individual acting as an intermediary between a securities exchange and an investor. They often provide services to individual investors and traders who cannot engage directly with security exchanges, which only accept orders from their members. They provide investors and traders with an investment plan, market intelligence, and research. They may cross-sell some financial services and products offered by their brokerage firms. They are also typically classified as discount or full-service brokers.

What does an insurance broker do?

Insurance brokers are responsible for assisting clients to determine their liability risks and in selecting the appropriate policies for their family, home, business, or automobile to ensure their protection. They direct clients in creating a sound decision and supply them with a variety of quotes that best suit their needs. Their duties include demonstrating the benefits, terms, conditions, and suspension for a number of participating insurance policies. Also, they may negotiate lesser rates for their clients and continue in guiding these clients in technical issues like filing a claim or changing their insurance coverage.

Broker vs insurance broker salary

Brokers and insurance brokers have different pay scales, as shown below.

BrokerInsurance Broker
Average salary$124,861$94,006
Salary rangeBetween $68,000 And $227,000Between $62,000 And $141,000
Highest paying CityNew York, NYBirmingham, AL
Highest paying stateNew YorkWashington
Best paying companyChild Guidance & Family SolutionsLiberty Mutual Insurance
Best paying industryInsuranceInsurance

Differences between broker and insurance broker education

There are a few differences between a broker and an insurance broker in terms of educational background:

BrokerInsurance Broker
Most common degreeBachelor's Degree, 66%Bachelor's Degree, 64%
Most common majorBusinessBusiness
Most common collegeUniversity of Southern CaliforniaUniversity of Pennsylvania

Broker vs insurance broker demographics

Here are the differences between brokers' and insurance brokers' demographics:

BrokerInsurance Broker
Average age4946
Gender ratioMale, 63.8% Female, 36.2%Male, 62.5% Female, 37.5%
Race ratioBlack or African American, 5.3% Unknown, 4.3% Hispanic or Latino, 13.2% Asian, 6.9% White, 70.1% American Indian and Alaska Native, 0.3%Black or African American, 9.3% Unknown, 3.6% Hispanic or Latino, 15.9% Asian, 4.9% White, 66.2% American Indian and Alaska Native, 0.1%
LGBT Percentage13%7%

Differences between broker and insurance broker duties and responsibilities

Broker example responsibilities.

  • Manage, lease and sell office condominiums on site.
  • Retail trader, fix income securities; manage client account activity; properly allocate client funds to appropriate investment options
  • Manage indexes, options, foreign equities, and short-selling positions that are compatible with clients' long-term investment goals.
  • Expand and maintain professional relationships with trading accounts including banks, hedge funds and portfolio managers.
  • Specialize in finding undervalue and/or overbought commodities by using fundamental and technical analysis that exist throughout the markets.
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Insurance broker example responsibilities.

  • Used consultative upselling techniques to provide leads
  • Work as an independent financial planner selling life insurance and annuities to individuals and families
  • Facilitate communications between doctors, hospitals, third party insurance companies and patients to obtain and verify patient billing information.
  • Deliver on the GEICO promise to customers by solving problems and giving competent insurance advice in a courteous and proficient manner.

Broker vs insurance broker skills

Common broker skills
  • Brokerage, 17%
  • Financial Services, 9%
  • Insurance Products, 7%
  • Risk Management, 6%
  • Client Relationships, 6%
  • Real Estate Transactions, 5%
Common insurance broker skills
  • Customer Service, 11%
  • Life Insurance Products, 8%
  • Lead Generation, 8%
  • Financial Resources, 8%
  • Annuities, 8%
  • Insurance Carriers, 6%