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The differences between licensed insurance 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 $54,118 average annual salary of a licensed insurance agent.
The top three skills for a licensed insurance agent include excellent time management, work ethic and strong customer service. The most important skills for an insurance broker are customer service, life insurance products, and lead generation.
| Licensed Insurance Agent | Insurance Broker | |
| Yearly salary | $54,118 | $94,006 |
| Hourly rate | $26.02 | $45.20 |
| Growth rate | 6% | 6% |
| Number of jobs | 78,016 | 38,403 |
| Job satisfaction | - | - |
| Most common degree | Bachelor's Degree, 50% | Bachelor's Degree, 64% |
| Average age | 46 | 46 |
| Years of experience | - | - |
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 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 insurance agents and insurance brokers have different pay scales, as shown below.
| Licensed Insurance Agent | Insurance Broker | |
| Average salary | $54,118 | $94,006 |
| Salary range | Between $32,000 And $88,000 | Between $62,000 And $141,000 |
| Highest paying City | Washington, DC | Birmingham, AL |
| Highest paying state | Hawaii | Washington |
| Best paying company | Torchmark | Liberty Mutual Insurance |
| Best paying industry | Finance | Insurance |
There are a few differences between a licensed insurance agent and an insurance broker in terms of educational background:
| Licensed Insurance Agent | Insurance Broker | |
| Most common degree | Bachelor's Degree, 50% | Bachelor's Degree, 64% |
| Most common major | Business | Business |
| Most common college | University of Pennsylvania | University of Pennsylvania |
Here are the differences between licensed insurance agents' and insurance brokers' demographics:
| Licensed Insurance Agent | Insurance Broker | |
| Average age | 46 | 46 |
| Gender ratio | Male, 39.0% Female, 61.0% | Male, 62.5% Female, 37.5% |
| Race ratio | 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% | 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% |