A Step-by-Step Guide on How to Get into the Insurance Business

You can choose to work for an insurance company, become an independent agent, or start your own agency. Most states require you to be at least 18 years old and have a high school diploma to apply for a license.

To get started, you'll need to research the specific requirements for your state, as they can vary. Some states may require a certain number of hours of pre-licensing education, while others may have different exam requirements.

To get started in the insurance business, you'll need to get licensed and registered. Insurance agents must be licensed to discuss insurance products or complete sales, and you'll need to obtain the proper type of license for your business, which will vary depending on your state.

You'll need to take a pre-licensing course, which can be done online or in-person, and will typically require 20-40 hours of training. After completing the course, you'll need to schedule your official licensing exam, which will be proctored by an outside company.

Here are the two most common license types:

Once you've obtained your license, you'll need to register your business with your state, typically with the secretary of state's office, and obtain a business license, a sales tax permit, and any other required documents.

To become a licensed insurance agent, you'll need to understand the state licensing requirements. Most states require you to complete a pre-licensing course, which can be taken online or in-person, and can range from 1-40 hours of training.

You'll need to choose the proper type of license for your insurance agent business, as license names will vary depending on the state you live in. This will depend on the products you plan to sell, such as auto, home, and business casualty insurance.

You may need to obtain multiple licenses, so it's essential to get the specifics from your state's department of insurance or the company you plan to represent. Insurance agents must be licensed to discuss insurance products or complete sales, and operating without a license can result in penalties or legal action.

You'll need to schedule your official licensing exam, which is usually administered by an outside company, and you may need to show proof of your completed training class before taking the exam. After passing your exam, you'll submit all required licensing applications to your state licensing department.

Here are the two most common license types:

Some states will require a background check, which may involve fingerprints, as part of the licensing process. You'll need to provide personal information, such as your Social Security number, date of birth, and residency information, and pay any applicable fees when applying for your license.

Having a degree isn't a strict requirement, but specializing in economics, business, accounting, finance, or mathematics can give you a head start in your underwriting career.

Getting certifications is a priority, as it gives you an extra edge. Some common certifications include the Chartered Property Casualty Underwriter (CPCU), Associate in Commercial Underwriting (AU), Associate in Personal Insurance (API), Life Underwriter Training Council Fellow (LUTCF), and Chartered Life Underwriter (CLU).

To become a successful underwriter, you'll typically start by creating basic policies under the guidance of more experienced underwriters. As you progress and earn certifications, you'll take on more complicated policies and gain more accountability.

Underwriters can make anywhere from $41,000 to $93,000 per year, with an average salary of $63,170, according to Payscale.

Here are some common certifications for underwriters:

To get licensed as an insurance agent, you'll need to know your state's specific requirements. Each state has unique licensing requirements, so research your state's process to get started.

You'll need to choose the proper type of license for your insurance agent business, which will depend on the products you plan to sell. License names will vary depending on the state you live in.

To become licensed, you'll need to complete a pre-licensing course, which can be taken online or in-person. Education requirements vary by state, from a one-day class to 20-40 hours of online training.

Here are the steps to get licensed:

Note: Some states may require a background check, which may involve fingerprints.

Each state has a designated agency to ensure that insurance companies obey the applicable laws and regulations. This agency is called the regulator.

The regulator's role is to oversee and supervise the business practices of the insurance industry in a particular state. They have the power to investigate cases, carry out penalties, and provide licenses to insurance companies.

Regulators play a key role in protecting the insured and the insurers. If a company faces financial hardships, it can compromise its ability to cover its clients and policyholders. Regulators monitor and preserve the financial solvency of insurance companies.

To become a regulator, you'll need intensive knowledge and understanding of administrative laws, general business and corporate law, contract law, trends, and jurisprudence in insurance litigation, legislative developments, and various other topics. According to Glassdoor, insurance regulators make an average of $104,059 annually in the U.S in 2022.

To become a lawyer in the insurance industry, you'll need to pass the bar exam and get licensed to work in your jurisdiction.

Insurance companies often have in-house legal departments or a network of lawyers to defend themselves, their clients, or to subrogate on behalf of their clients.

Lawyers working in the insurance industry need to have a strong foundation in the law, which they can gain through their education and training.

Insurance companies require lawyers to ensure that their policies are fair and defensible in a court of law, which is why lawyers are a crucial part of the insurance industry.

Lawyers working in the insurance industry can find opportunities to work with insurance companies, either directly or through a network of lawyers, providing them with a range of career options.

Getting appointed with a company is a crucial step in becoming an insurance sales agent. You'll need to complete an application with each insurance company you plan to sell products for.

You must be granted an appointment and binding authority, which is recorded on your state insurance license. This shows that the insurance company has approved you to sell their products.

To get appointed, you'll need to meet the company's requirements and standards. This may include having a certain amount of experience, a strong reputation, or a proven track record of sales.

Joining a professional association or agent network can help you access insurance providers to sell their policies. This can be especially helpful if you're an independent agent with limited experience and no client base.

As you start your insurance business, it's essential to have a solid foundation in place. You'll want to make sure your agency is protected with commercial insurance, which can be obtained through a business owner's policy that combines general liability insurance with commercial property insurance.

General liability insurance will protect you in a wide variety of situations, including claims of bodily injury if a client is injured while in your office. This type of coverage can be a lifesaver if you have clients visiting your office.

You'll also need to consider errors and omissions insurance, which is required by almost all insurance companies before you can write their policies. This type of coverage protects your clients against errors that you or your staff may make.

To acquire clients, start by prospecting to friends and family, or writing your own insurance to get a feel for the systems. Many agents also join the local chamber of commerce to network and market their business.

Having a strong online presence is essential, so make sure your website clearly outlines what kinds of insurance you sell and the customers you serve, with easy-to-find contact information. Joining the local chamber of commerce can also help you get referrals from customers seeking agents in your area.

You may need to hustle for your first few clients if you start an independent agency, but attending networking events and advertising in your local market can help. Creating a website and promoting your business online are also effective marketing strategies.

Local marketing is crucial, even if you start an agency affiliated with an insurance company, as customers may seek out agents near them. You'll need to do local marketing too, in addition to referrals.

Protecting your business from potential risks is crucial to its success. General liability insurance can protect you in a wide variety of situations, including claims of bodily injury if a client is injured while in your office.

Tripping over carpet or any other simple accident can result in an injury and a liability claim. This coverage can be combined with commercial property insurance in a business owner’s policy, often at a discounted rate.

Errors and omissions insurance is required by almost all insurance companies before you will be allowed to write their policies. This protects your clients against errors that you or your staff may make.

If you accidentally delete the wrong car from a policy, and it isn’t covered in an accident, E&O insurance will take care of the client. Workers’ compensation insurance coverage is designed to protect your agency from claims involving your employees.

If an employee is injured while at work, it will pay a portion of their lost wages and medical bills. Most states require workers’ compensation insurance for businesses, even if you only have part-time workers.

Cyber insurance is necessary if you store your clients’ email addresses, credit card numbers, or other personal information. This type of insurance covers costs related to a cyberattack or data breach, including the cost of notifying affected clients and supplying them with fraud monitoring services after a breach.

Administrative staff play a crucial role in ensuring a business runs smoothly.

They handle office management, reception, bookkeeping, paperwork, and human resources, allowing the business to focus on its primary tasks.

Every insurance brokerage, adjusting firm, and insurance company has a clerical and admin staff to take care of day-to-day activities.

Qualifications for administrative staff vary based on the role, with some requiring industry-specific accreditation programs for advancement.

Insurance products can be a complex and diverse field, but it's essential to understand the basics. There are many kinds of commercial insurance and personal insurance policies.

Commercial insurance agents focus on providing coverage to businesses with policies ranging from general liability insurance to commercial property insurance and errors and omissions coverage. These policies can help protect businesses from financial losses due to accidents, property damage, or professional mistakes.

Personal lines of insurance, on the other hand, focus on coverage for individuals and families. This includes insurance for motor vehicles, home insurance, and life insurance.

Choosing the right insurance products for your clients is crucial. There are many kinds of commercial insurance and personal insurance policies available.

Commercial insurance agents typically focus on providing coverage to businesses. Policies range from general liability insurance to commercial property insurance and errors and omissions coverage.

Personal lines of insurance, on the other hand, focus on coverage for individuals and families. This includes insurance for motor vehicles, home insurance, and life insurance.

Commercial insurance agents can specialize in one or multiple types of commercial insurance policies.

Getting quotes from trusted carriers can be a daunting task, but it doesn't have to be. Insureon makes it easy by allowing you to complete their online application in no time.

You can compare insurance quotes from top-rated U.S. carriers through Insureon's platform. This means you can find the right policy for your small business quickly and efficiently.

Once you've found the perfect policy, you can start coverage in less than 24 hours. This is a huge advantage, especially if you're looking to get started with insurance ASAP.

If you're looking to get into the insurance business, there are many career options to consider. You can leverage your existing experience and skills to transition into high-paying roles, such as insurance jobs in finance, sales, adjustment, or investigation.

The insurance industry is projected to grow, offering a wide range of high-paying jobs. Fortunately, many of these roles require transferable experience and skills, making it easier to break into the industry.

In addition to traditional roles like brokers and adjusters, the industry is expanding into support roles and specialized service providers through insurance outsourcing services. This trend offers new career paths and opportunities, allowing agencies to focus on core activities while improving service quality.

The insurance industry offers a wide range of job options, from traditional roles to more specialized positions.

Insurance agents, brokers, underwriters, and adjusters are the jobs that usually come to mind, but there are many other crucial support roles in the industry.

Agents enjoy relatively flexible work lives, but they also have responsibilities such as meeting new clients, finding them the right insurance policy, and closing sales.

Insurance industry jobs include the Big Four: agents, brokers, underwriters, and adjusters, which are the most common roles people think of when talking about working in insurance.

Other insurance industry jobs provide crucial support to the insurance process, but are often overlooked.

High-paying insurance jobs are available, especially for those with transferable experience and skills in finance, sales, adjustment, or investigation.

Insurance agents need to constantly meet new clients, find them the right insurance policy, and close sales, making their work life anything but dull.

Being an actuary can be a fulfilling career, especially if you enjoy working with numbers and understanding how people think and behave. You'll have the opportunity to analyze financial risk and help insurance companies design policies that work for both them and their clients.

Actuaries are required to have a strong understanding of mathematical and statistical models, which they use to determine the likelihood of insurance companies having to pay out on claims. They also need to be well-versed in using information systems to design and manage risk assessment programs.

To become an actuary, you'll need to pass an actuarial exam, which is provided by professional groups like the Casualty Actuarial Society (CAS) and the Society of Actuaries (SOA). This is a crucial step in your career, as it will demonstrate your expertise in the field.

Actuaries can earn a decent salary, with those with less than a year of experience averaging around $59,830. As they gain more experience, their salaries can double, making it a career with potential for growth and financial stability.

As an insurance agent, you'll have a dynamic and customer-centric career. You'll never have a dull moment, constantly meeting new clients, finding them the right insurance policy, and closing sales.

Insurance agents can choose between two types of careers: captive and independent. You'll need to decide which one suits you best.

Captive insurance agents work with only one company, receiving training and support in return for representing their products exclusively. Commission rates may be lower, but you'll have a clear understanding of the company's products.

You'll need a license to discuss insurance products or complete sales. Penalties or legal action may await those who operate without one.

Insurance agents work directly for an insurance company, selling their products and receiving great training and benefits. However, you won't have the opportunity to build your own client list or transition into self-employment.

The insurance industry is evolving, and with it, new career paths are emerging. Agencies are turning to insurance BPO providers to outsource services like policy checking, certificate issuance, and quotes and proposals.

This trend allows agencies to focus on core activities and improve service quality. By outsourcing non-core tasks, agencies can free up resources to concentrate on high-value tasks.

Insurance outsourcing services are becoming increasingly popular, enabling agencies to reduce costs and improve operational efficiency. This shift is creating new opportunities for support roles and specialized service providers.

By exploring these emerging career paths, you can take advantage of the expanding opportunities in the insurance industry.

Investment Professionals are a key part of an insurance company's activities.

They work in in-house investing departments to generate profit from surplus premiums. Insurance companies have access to large amounts of incoming money from premium payments, and they're free to do as they please with the rest.

Investment Professionals typically need some investment experience alongside a relevant post-secondary degree. Qualifications and prerequisites will depend on which role you intend to pursue.

To succeed in this field, you'll need to have a solid understanding of investment analysis and portfolio management.