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Insurance agent vs licensed agent

The differences between insurance agents and licensed agents can be seen in a few details. Each job has different responsibilities and duties. Additionally, an insurance agent has an average salary of $51,936, which is higher than the $42,315 average annual salary of a licensed agent.

The top three skills for an insurance agent include customer service, insurance sales and health insurance. The most important skills for a licensed agent are HIPAA, customer service, and inbound calls.

Insurance agent vs licensed agent overview

Insurance AgentLicensed Agent
Yearly salary$51,936$42,315
Hourly rate$24.97$20.34
Growth rate6%6%
Number of jobs67,97768,666
Job satisfaction5-
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 52%
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 a licensed agent do?

Licensed Agents act as authorized brokers acting on behalf of an individual owner or organization in selling a product, service, or property. There are many different pathways a licensed agent can delve into, such as in real estate, insurance, and banking. For instance, a real estate agent uses its license to be able to sell and rent properties. Their duties include gathering property information, evaluating property estimates, marketing properties, and represent sellers in the process of negotiation. They seek prospective buyers, monitor the sale process between stakeholders, and reach a mutually agreed price.

Insurance agent vs licensed agent salary

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

Insurance AgentLicensed Agent
Average salary$51,936$42,315
Salary rangeBetween $30,000 And $88,000Between $28,000 And $62,000
Highest paying CityNew York, NYKirkland, WA
Highest paying stateHawaiiAlaska
Best paying companyZ Capital GroupHPOne
Best paying industryFinanceInsurance

Differences between insurance agent and licensed agent education

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

Insurance AgentLicensed Agent
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 52%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Insurance agent vs licensed agent demographics

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

Insurance AgentLicensed Agent
Average age4646
Gender ratioMale, 51.6% Female, 48.4%Male, 41.3% Female, 58.7%
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, 9.2% Unknown, 3.6% Hispanic or Latino, 15.8% Asian, 4.9% White, 66.4% American Indian and Alaska Native, 0.1%
LGBT Percentage7%7%

Differences between insurance agent and licensed agent 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.
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Licensed agent example responsibilities.

  • Train and manage employees and achieve significant improvements in their productivity & maintain sales go9als consistently.
  • Educate and advise in different investment products, such as life insurance and fix annuities.
  • Work with clients to satisfy financial needs offering products such as life insurance, annuities, and Medicare supplements.
  • Provide education on Medicare/ Medicaid coverage, rights and responsibilities.
  • Provide objective information pertaining to coverage and how to obtain Medicaid coverage.
  • Generate referral business and cultivate individual lead sources, using networking and prospecting techniques to grow potential sales opportunities.
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Insurance agent vs licensed agent 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 licensed agent skills
  • HIPAA, 31%
  • Customer Service, 11%
  • Inbound Calls, 9%
  • Casualty Insurance, 6%
  • Life Insurance Products, 6%
  • Financial Services, 5%