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Insurance agent vs licensed insurance agent

The differences between insurance agents and licensed insurance agents can be seen in a few details. Each job has different responsibilities and duties. Additionally, a licensed insurance agent has an average salary of $54,118, 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 a licensed insurance agent are excellent time management, work ethic, and strong customer service.

Insurance agent vs licensed insurance agent overview

Insurance AgentLicensed Insurance Agent
Yearly salary$51,936$54,118
Hourly rate$24.97$26.02
Growth rate6%6%
Number of jobs67,97778,016
Job satisfaction5-
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 50%
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 insurance agent do?

A licensed insurance agent is primarily responsible for finding and utilizing opportunities to secure insurance sales. Moreover, a licensed insurance agent must reach out to potential clients, discuss and negotiate terms, respond to inquiries, and perform various assessments to determine their ability to uphold financial obligations. Besides building a client base, they also need to handle current policies, process renewals, monitor claims, maintain an accurate record of transactions, prepare progress reports and strategies, and distribute policy proceeds according to the company rules and regulations.

Insurance agent vs licensed insurance agent salary

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

Insurance AgentLicensed Insurance Agent
Average salary$51,936$54,118
Salary rangeBetween $30,000 And $88,000Between $32,000 And $88,000
Highest paying CityNew York, NYWashington, DC
Highest paying stateHawaiiHawaii
Best paying companyZ Capital GroupTorchmark
Best paying industryFinanceFinance

Differences between insurance agent and licensed insurance agent education

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

Insurance AgentLicensed Insurance Agent
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 50%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Insurance agent vs licensed insurance agent demographics

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

Insurance AgentLicensed Insurance Agent
Average age4646
Gender ratioMale, 51.6% Female, 48.4%Male, 39.0% Female, 61.0%
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, 15.7% Asian, 4.9% White, 66.5% American Indian and Alaska Native, 0.1%
LGBT Percentage7%7%

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

  • Explain and advice the customers about the insurance needs, handle objections and sale the Allstate company advantage.
  • Work with people in retirement helping manage their health and life insurance, also help structure their 401k's into annuities.
  • Used consultative upselling techniques to provide leads
  • Quote and sell home, mobile home, renters, auto, and motorcycle policies.
  • Process application on auto, homes, workers comp, trailer, motorcycle, commercial policies.
  • Provide financial services through life insurance, disability insurance and annuities.
  • Show more

Insurance agent vs licensed insurance 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 insurance agent skills
  • Excellent Time Management, 17%
  • Work Ethic, 17%
  • Strong Customer Service, 13%
  • Customer Service, 13%
  • Insurance Sales, 11%
  • Financial Resources, 5%