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Insurance agent vs licensed insurance producer

The differences between insurance agents and licensed insurance producers can be seen in a few details. Each job has different responsibilities and duties. Additionally, a licensed insurance producer has an average salary of $66,026, 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 producer are work ethic, lead generation, and annuities.

Insurance agent vs licensed insurance producer overview

Insurance AgentLicensed Insurance Producer
Yearly salary$51,936$66,026
Hourly rate$24.97$31.74
Growth rate6%6%
Number of jobs67,97754,872
Job satisfaction5-
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 57%
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 producer do?

An Insurance producer, also called an insurance agent that promotes and sells insurance benefits and packages to clients. This includes life insurance, property, and health insurance that is offered by not only one company. They are responsible for promoting customer service and creates a good relationship between the company and the insurer. They also serve as a point of a contract if there are insurers that need someone who can assist them with what particular package they can get.

Insurance agent vs licensed insurance producer salary

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

Insurance AgentLicensed Insurance Producer
Average salary$51,936$66,026
Salary rangeBetween $30,000 And $88,000Between $44,000 And $97,000
Highest paying CityNew York, NYWashington, DC
Highest paying stateHawaiiWashington
Best paying companyZ Capital GroupBerkshire Hathaway
Best paying industryFinanceFinance

Differences between insurance agent and licensed insurance producer education

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

Insurance AgentLicensed Insurance Producer
Most common degreeBachelor's Degree, 53%Bachelor's Degree, 57%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Insurance agent vs licensed insurance producer demographics

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

Insurance AgentLicensed Insurance Producer
Average age4646
Gender ratioMale, 51.6% Female, 48.4%Male, 39.2% Female, 60.8%
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, 9.4% Unknown, 3.6% Hispanic or Latino, 16.1% Asian, 4.9% White, 65.9% American Indian and Alaska Native, 0.1%
LGBT Percentage7%7%

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

  • Used consultative upselling techniques to provide leads
  • Present AFLAC benefits packages to various company owners and employees.
  • Educate customers on products such as property-casualty, life, accident-health, and annuities.
  • Contact businesses to attempt to establish an AFLAC account as part of their benefits package.
  • Provide information on life and health insurance, medicare supplements, annuities , 401K rollovers and IRA's.
  • Facilitate communications between doctors, hospitals, third party insurance companies and patients to obtain and verify patient billing information.
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Insurance agent vs licensed insurance producer 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 producer skills
  • Work Ethic, 51%
  • Lead Generation, 13%
  • Annuities, 8%
  • Customer Service, 6%
  • Insurance Sales, 6%
  • Auto Insurance, 3%