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WORKING IN INSURANCE

What is an Insurance Agent?

Insurance agents, sometimes known as insurance sales agents or brokers, are involved in selling a variety of insurance and financial products, including property, life insurance, health insurance, disability and medical insurance.

Insurance agents use computer software to sell insurance to their clients.  Specific information about the customer is entered into the program and stored in the insurance company database, such as name, address, telephone number, e-mail address and other personal information.  The insurance application is examined, the in...

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WORKING IN INSURANCE

What is an Insurance Agent?

Insurance agents, sometimes known as insurance sales agents or brokers, are involved in selling a variety of insurance and financial products, including property, life insurance, health insurance, disability and medical insurance.

Insurance agents use computer software to sell insurance to their clients.  Specific information about the customer is entered into the program and stored in the insurance company database, such as name, address, telephone number, e-mail address and other personal information.  The insurance application is examined, the insurance company decides whether to take out the insurance for the term of the policy, and the insurance cover and premium amount are determined.

For example, if someone is looking for life insurance, insurers take age and financial history into account. Insurance companies also take into account a person's driving ability when applying for insurance such as life, disability or health insurance.  They also use computer software to determine whether to approve an applicant and are responsible for all aspects of the claim process, such as eligibility, entitlement to coverage, coverage and premium. 

If not enough applications are approved, the company will not make enough money from premiums. Insurance companies must strike a balance between risky and cautious decisions, and if the insurer allows too much risk, the insurance pays out too much damage.

This is why it is so important for the insurance agent to analyse and make a recommendation on coverage and premiums, and the insurer evaluates the recommendation and decides whether to approve or reject the application.  For example, if the applicant has filed for insolvency prematurely, the insurer must determine whether this information is relevant to the current policy. The insurer analyses the risk factors that appear on the application and would take into account how far back the bankruptcy was in the past and how the financial situation of the applicants has changed since the insolvency application.

Although the work requirements are similar in all areas, the criteria of the insurers differ. Most insurers specialise in specific areas such as health, education, healthcare, insurance and financial services.

How to become an Insurance Agent

Most companies prefer to hire applicants with a bachelor's degree, but some employers prefer to hire applicants without a degree. Certification is required to advance to a senior position as an Insurance Agent or underwriter, underwriter or manager. However a school leaving certificate or a university degree in insurance can suffice. 

Particularly helpful are courses in economics, finance, economics and mathematics, as well as courses in business administration and business administration, business law and economics.

Employers often expect policyholders to be certified in these courses, and prospective insurers typically work with trainees under the supervision of an older insurer. The trainees learn about the most common risk factors and work their way through basic applications. With increasing experience, you take responsibility for more complex applications and train with a prospective insurer, usually under their supervision.

These courses are important to keep up to date with new insurance policies and to adapt to changes in the market when you move into a senior management position as an Insurance Agent or underwriter. Many certification options are available, but some certifications require a degree in a particular area, such as insurance law, insurance policy writing or insurance administration, among others.

Some institutions offer charters, and some institutions offer training programs for freshmen, such as the American Institute of Insurance Agents and the National Insurance Institute.  Chartered Life Underwriter certification is offered by the American College of Financial Services. The National Association of Insurance Financial Advisors offers Certified Financial Analyst and Professional Insurance Agent also offer certifications.

Insurers need to weigh up the costs and benefits of different choices and make the right ones. 

You need to be able to analyze information from a variety of sources and solve complex problems. Since every point in an insurance application can affect a coverage decision, insurers must also pay attention to the details.

Mathematical skills are required to determine the likelihood of damage to an insurance policy and to calculate an appropriate premium. Underwriters also need good communication and interpersonal skills, as much of their work involves dealing with other people, such as insurance agents.

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