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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 | Insurance Broker | |
| Yearly salary | $42,315 | $94,006 |
| Hourly rate | $20.34 | $45.20 |
| Growth rate | 6% | 6% |
| Number of jobs | 68,666 | 38,403 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 52% | Bachelor's Degree, 64% |
| Average age | 46 | 46 |
| Years of experience | - | - |
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.
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 agents and insurance brokers have different pay scales, as shown below.
| Licensed Agent | Insurance Broker | |
| Average salary | $42,315 | $94,006 |
| Salary range | Between $28,000 And $62,000 | Between $62,000 And $141,000 |
| Highest paying City | Kirkland, WA | Birmingham, AL |
| Highest paying state | Alaska | Washington |
| Best paying company | HPOne | Liberty Mutual Insurance |
| Best paying industry | Insurance | Insurance |
There are a few differences between a licensed agent and an insurance broker in terms of educational background:
| Licensed Agent | Insurance Broker | |
| Most common degree | Bachelor's Degree, 52% | Bachelor's Degree, 64% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between licensed agents' and insurance brokers' demographics:
| Licensed Agent | Insurance Broker | |
| Average age | 46 | 46 |
| Gender ratio | Male, 41.3% Female, 58.7% | Male, 62.5% Female, 37.5% |
| Race ratio | Black 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 Percentage | 7% | 7% |