Insurance Broker vs. Agent

An insurance broker is an independent insurance specialist who legally represents buyers, while an agent is an insurance professional who sells insurance plans to buyers. An insurance broker helps clients identify insurance plans that will meet their specific needs. They also help small businesses assess their situations, and help understand the exposure to various types of risks that the company faces. They also recommend insurance products based on the needs of the business.

What is an insurance broker and how to become one

Updated January 8, 2025

4 min read

Quoted expert

Tom Faulconer JD, CPCU, CLU, ChFC, CASL,CFP(r)

An insurance broker is an individual who acts as an intermediary between clients and insurance companies. They provide professional advice on insurance policies and coverage options, and assist clients in selecting the best plan that suits their needs and budget. They also help clients with claims processing, policy renewals, and providing ongoing support throughout the policy term. Insurance brokers work with various types of insurance, including health, life, car, home, and business insurance.

What general advice would you give to an insurance broker?

Tom Faulconer JD, CPCU, CLU, ChFC, CASL,CFP(r)

Clinical Professor, Butler University

That depends on the type of agent the person is. Most of us deal with agents who sell personal lines, such as auto and home and life insurance. Their day is filled with prospecting for new clients, appointments to review current insurance with current clients, service work such as adding autos and changing addresses, and, helping take and resolve claims. Some agents specialize in commercial lines. They spend their days prospecting as well, but also work very closely with their clients on a regular basis to assure their insurance program is appropriate. This is because commercial clients usually have very large insurance policies, make frequent changes, and have lots of service work. Plus, the relationship is the key in commercial lines.

ScoreInsurance BrokerUS Average

Salary

7.3

Avg. Salary $94,006

Avg. Salary $59,228

Stability level

6.8

Growth rate 6%

Growth rate 0.3%

Diversity

5.6

Race

American Indian and Alaska Native 0.15%

Asian 4.88%

Black or African American 9.31%

Hispanic or Latino 15.91%

Unknown 3.56%

White 66.20%

Gender

female 37.50%

male 62.50%

Age - 46

Race

American Indian and Alaska Native 3.00%

Asian 7.00%

Black or African American 14.00%

Hispanic or Latino 19.00%

White 57.00%

Gender

female 47.00%

male 53.00%

Age - 46

Stress level

6.8

Stress level is high

7.1 - high

Complexity level

8.9

Complexity level is advanced

7 - challenging

Work life balance

6.1

Work life balance is fair

6.4 - fair

What are the pros and cons of being an insurance broker?

Pros

High earning potential
Flexible schedule
Opportunity for growth and advancement
Meeting new people and networking
Job security in a stable industry

Cons

High pressure sales environment
Requires extensive knowledge of insurance products and regulations
Competitive market and constant pressure to meet sales targets
Client retention can be challenging
Dealing with rejection and difficult clients

Key steps to become an insurance broker

Explore insurance broker education requirements

Most common insurance broker degrees

Bachelor's

63.9 %

Associate

15.0 %

High School Diploma

8.2 %

Start to develop specific insurance broker skills

Skills	Percentages
Customer Service	11.20%
Life Insurance Products	8.32%
Lead Generation	7.92%
Financial Resources	7.85%
Annuities	7.55%

Complete relevant insurance broker training and internships

Accountants spend an average of 6-12 months on post-employment, on-the-job training. New insurance brokers learn the skills and techniques required for their job and employer during this time. The chart below shows how long it takes to gain competency as an insurance broker based on U.S. Bureau of Labor Statistics data and data from real insurance broker resumes.

Obtain the necessary licensing

Becoming an licensed insurance broker usually doesn't require a college degree. However, you need to pass an exam to become a licensed insurance broker in most of states. 38 states require insurance brokers to have license for their work. You can see the list of states below.

State	Education	Exam	License url
Alabama	-	-	Licensed Insurance Producer
Arkansas	Degree required	State exam required	Insurance Sales Producer (Agent)
Colorado	Specific course required	State exam required	Insurance Agent
Connecticut	Specific course required	State exam required	Producer License, Individual
Delaware	-	State exam required	Insurance Agent

Gain additional insurance broker certifications

Insurance broker certifications can show employers you have a baseline of knowledge expected for the position. Certifications can also make you a more competitive candidate. Even if employers don't require a specific insurance broker certification, having one may help you stand out relative to other applicants.

The most common certifications for insurance brokers include Certified Professional, Life and Health Insurance Program (CPLHI) and Certified Insurance Examiner (CIE).

More About Certifications

Research insurance broker duties and 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.

Prepare your insurance broker resume

When your background is strong enough, you can start writing your insurance broker resume.

You can use Zippia's AI resume builder to make the resume writing process easier while also making sure that you include key information that hiring managers expect to see on an insurance broker resume. You'll find resume tips and examples of skills, responsibilities, and summaries, all provided by Zippi, your career sidekick.

Choose from 10+ customizable insurance broker resume templates

Build a professional insurance broker resume in minutes. Browse through our resume examples to identify the best way to word your resume. Then choose from 10+ resume templates to create your insurance broker resume.

Apply for insurance broker jobs

Now it's time to start searching for an insurance broker job. Consider the tips below for a successful job search:

Browse job boards for relevant postings
Consult your professional network
Reach out to companies you're interested in working for directly
Watch out for job scams

How do insurance brokers rate their job?

-/5

5 stars

4 stars

3 stars

2 stars

1 star

Insurance broker reviews

A zippia user wrote a review on Oct 2019

Pros

The diversity of the work flow and the diverse network of people I work with on the daily. From customers,lenders, realtors, inspectors to underwriters and Sales representatives. I enjoy assisting others, problem solving and analyzing the different needs and products available to the client.

Cons

Scripts, depending on who you work for.