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Licensed agent vs insurance broker

The differences between licensed agents and insurance brokers can be seen in a few details. Each job has different responsibilities and duties. Additionally, an insurance broker has an average salary of $94,006, which is higher than the $42,315 average annual salary of a licensed agent.

The top three skills for a licensed agent include HIPAA, customer service and inbound calls. The most important skills for an insurance broker are customer service, life insurance products, and lead generation.

Licensed agent vs insurance broker overview

Licensed AgentInsurance Broker
Yearly salary$42,315$94,006
Hourly rate$20.34$45.20
Growth rate6%6%
Number of jobs68,66638,403
Job satisfaction--
Most common degreeBachelor's Degree, 52%Bachelor's Degree, 64%
Average age4646
Years of experience--

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.

What does an insurance broker do?

Insurance brokers are responsible for assisting clients to determine their liability risks and in selecting the appropriate policies for their family, home, business, or automobile to ensure their protection. They direct clients in creating a sound decision and supply them with a variety of quotes that best suit their needs. Their duties include demonstrating the benefits, terms, conditions, and suspension for a number of participating insurance policies. Also, they may negotiate lesser rates for their clients and continue in guiding these clients in technical issues like filing a claim or changing their insurance coverage.

Licensed agent vs insurance broker salary

Licensed agents and insurance brokers have different pay scales, as shown below.

Licensed AgentInsurance Broker
Average salary$42,315$94,006
Salary rangeBetween $28,000 And $62,000Between $62,000 And $141,000
Highest paying CityKirkland, WABirmingham, AL
Highest paying stateAlaskaWashington
Best paying companyHPOneLiberty Mutual Insurance
Best paying industryInsuranceInsurance

Differences between licensed agent and insurance broker education

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

Licensed AgentInsurance Broker
Most common degreeBachelor's Degree, 52%Bachelor's Degree, 64%
Most common majorBusinessBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Licensed agent vs insurance broker demographics

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

Licensed AgentInsurance Broker
Average age4646
Gender ratioMale, 41.3% Female, 58.7%Male, 62.5% Female, 37.5%
Race ratioBlack 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%Black or African American, 9.3% Unknown, 3.6% Hispanic or Latino, 15.9% Asian, 4.9% White, 66.2% American Indian and Alaska Native, 0.1%
LGBT Percentage7%7%

Differences between licensed agent and insurance broker duties and responsibilities

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.
  • Show more

Insurance broker example 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.

Licensed agent vs insurance broker skills

Common licensed agent skills
  • HIPAA, 31%
  • Customer Service, 11%
  • Inbound Calls, 9%
  • Casualty Insurance, 6%
  • Life Insurance Products, 6%
  • Financial Services, 5%
Common insurance broker skills
  • Customer Service, 11%
  • Life Insurance Products, 8%
  • Lead Generation, 8%
  • Financial Resources, 8%
  • Annuities, 8%
  • Insurance Carriers, 6%