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Insurance agent vs insurance broker

The differences between insurance agents and insurance brokers can be seen in a few details. Each job has different responsibilities and duties. Additionally, an insurance broker has an average salary of $94,006, which is higher than the $51,936 average annual salary of an insurance agent.

The top three skills for an insurance agent include customer service, insurance sales and health insurance. The most important skills for an insurance broker are customer service, life insurance products, and lead generation.

Insurance agent vs insurance broker overview

Insurance AgentInsurance Broker
Yearly salary$51,936$94,006
Hourly rate$24.97$45.20
Growth rate6%6%
Number of jobs67,97738,403
Job satisfaction5-
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 64%
Average age4646
Years of experience--

What does an insurance agent do?

An insurance agent is responsible for inviting potential clients to the insurance company by offering different insurance services. Insurance agents must have a comprehensive knowledge of insurance types to provide the clients with the best insurance option in the market. The insurance agents should evaluate a client's long-term needs and financial goals to create individual packages as the insurance company allowed. An insurance agent also handles policy renewals and keeps customers' insurance files for reference.

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.

Insurance agent vs insurance broker salary

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

Insurance AgentInsurance Broker
Average salary$51,936$94,006
Salary rangeBetween $30,000 And $88,000Between $62,000 And $141,000
Highest paying CityNew York, NYBirmingham, AL
Highest paying stateHawaiiWashington
Best paying companyZ Capital GroupLiberty Mutual Insurance
Best paying industryFinanceInsurance

Differences between insurance agent and insurance broker education

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

Insurance AgentInsurance Broker
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 64%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Insurance agent vs insurance broker demographics

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

Insurance AgentInsurance Broker
Average age4646
Gender ratioMale, 51.6% Female, 48.4%Male, 62.5% Female, 37.5%
Race ratioBlack or African American, 9.3% Unknown, 3.6% Hispanic or Latino, 15.8% Asian, 4.9% White, 66.4% American Indian and Alaska Native, 0.1%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 Percentage7%7%

Differences between insurance agent and insurance broker duties and responsibilities

Insurance agent example responsibilities.

  • Used consultative upselling techniques to provide leads
  • Maintain personal and confidential Medicare & Medicaid customer information following all HIPAA.
  • Follow all applicable HIPPA and privacy regulations.
  • Explain medical plans to Medicare / Medicaid eligible clients to ensure best fit.
  • Identify and solicit sales prospects in agency database and in the general marketplace.
  • Develop productive business relationships with key marketplace players by identifying the right products and services.
  • Show more

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.

Insurance agent vs insurance broker skills

Common insurance agent skills
  • Customer Service, 25%
  • Insurance Sales, 8%
  • Health Insurance, 6%
  • Life Insurance Products, 6%
  • Financial Resources, 6%
  • Auto Insurance, 5%
Common insurance broker skills
  • Customer Service, 11%
  • Life Insurance Products, 8%
  • Lead Generation, 8%
  • Financial Resources, 8%
  • Annuities, 8%
  • Insurance Carriers, 6%