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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 | Licensed Insurance Agent | |
| Yearly salary | $51,936 | $54,118 |
| Hourly rate | $24.97 | $26.02 |
| Growth rate | 6% | 6% |
| Number of jobs | 67,977 | 78,016 |
| Job satisfaction | 5 | - |
| Most common degree | Bachelor's Degree, 53% | Bachelor's Degree, 50% |
| Average age | 46 | 46 |
| Years of experience | - | - |
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.
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 agents and licensed insurance agents have different pay scales, as shown below.
| Insurance Agent | Licensed Insurance Agent | |
| Average salary | $51,936 | $54,118 |
| Salary range | Between $30,000 And $88,000 | Between $32,000 And $88,000 |
| Highest paying City | New York, NY | Washington, DC |
| Highest paying state | Hawaii | Hawaii |
| Best paying company | Z Capital Group | Torchmark |
| Best paying industry | Finance | Finance |
There are a few differences between an insurance agent and a licensed insurance agent in terms of educational background:
| Insurance Agent | Licensed Insurance Agent | |
| Most common degree | Bachelor's Degree, 53% | Bachelor's Degree, 50% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between insurance agents' and licensed insurance agents' demographics:
| Insurance Agent | Licensed Insurance Agent | |
| Average age | 46 | 46 |
| Gender ratio | Male, 51.6% Female, 48.4% | Male, 39.0% Female, 61.0% |
| Race ratio | Black 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 Percentage | 7% | 7% |