What is an Insurance Broker?
An Insurance Broker is a specialist that serves as a go-between for a customer and an insurance company, assisting the former in finding the best coverage for their requirements. Unlike Insurance Agents, Insurance Brokers represent clients, not insurance companies, and hence cannot bind coverage on the insurer’s behalf.
Using an Insurance Broker is not required for everyone. It is up to you how you get Insurance, however, Insurance Brokers are normally best suited for clients with more extensive insurance needs, such as a landlord or small company owner who has many policies.
Insurance Brokers work in a variety of businesses, including customs, home mortgages, real estate, and stocks. Individuals and enterprises with complicated insurance needs require the assistance of an Insurance Broker. Aside from saving time, using an Insurance Broker may help you determine how much coverage you need and avoid the hazards of purchasing insufficient coverage.
Passion is perhaps the most significant personality quality for any successful Insurance Broker. Great Insurance Brokers are enthusiastic about completing sales, finding their clients the finest coverage, and understanding the intricacies of each specific policy. If you can recognise yourself in these traits, being an Insurance Broker just might be the best career path for you.
Responsibilities
Responsibilities for Insurance Brokers may vary according to their area of expertise but overall will include these:
- Developing marketing activities to acquire new customers.
- Handling customer accounts.
- Providing risk management advice to customers.
- Bringing current policies up to date.
- Meeting with prospective clients to discuss their insurance requirements.
- Using techniques such as networking and cold calling to identify possibilities and build trust with new consumers
- Investigating all policy choices accessible to the customer.
- Explaining the insurance to the customer and signing the policy agreement.
- Counselling customers on when and how to file a claim under their coverage.
- Bargaining with underwriters to obtain the best coverage for the greatest price.
- Writing reports for underwriters.
- Obtaining premiums.
- Keeping in touch with clients.
- Following market trends and constantly updating your product and service expertise.
- General administrative responsibilities (you’ll never be able to avoid paperwork)
- Preparing underwriter reports
- Coordinating with other insurance professionals
Salary
Salaries for this position will vary depending on your degree of expertise, employer and geographic region. UK salaries for Insurance Brokers range from £20,000 to £60,000. In comparison, Insurance Brokers in London earn an average of £44,143, with salaries ranging from £22,000 to £94,000.
There are more benefits to look forward to in addition to the excellent salary. Depending on your employment, you may be able to earn commission, use a corporate car, and get insurance and pension benefits.
Insurance Brokers are paid a commission by insurers when the policies are arranged. The commission amount varies by policy and firm and is usually determined as a percentage of the premium. Insurance Brokers frequently earn a higher fee on the first policy than on renewals. In the first year, life insurance agents, in particular, might earn up to a 100% commission. In addition to receiving commissions, some Insurance Brokers also charge fees.
You’ve selected the ideal vocation if you desire a conventional 9-5 job working 41 to 43 hours every week. Although it is always a good idea to verify with your company about your expected hours, since some Insurance Brokers are expected to work on Saturdays and even evenings if the customer demands it. Working primarily in an office setting, you’ll also be doing some networking to gain new business, so plan to travel to see clients on occasion.
Insurance Brokers have a lot to do during the day, and most of their work revolves around the customer, analysing their insurance requirements and counselling them based on their specific circumstances. As an Insurance Broker, you will often operate independently on behalf of numerous insurance firms.
You will match clients with the insurance carrier that best matches their needs and provides the greatest value. Depending on the criteria of the clients, you might assist them in locating the lowest insurance or the insurance that gives the finest coverage. To establish your clients’ demands, you’ll need to acquire information such as the sort of insurance they require, the coverage they want, and the deductible rates they want. You may also obtain credit records, as well as medical and insurance coverage histories, to check that they are eligible for a certain policy or company. After that, you’ll get estimates from possible insurance firms and handle applications.
You may also give suggestions to help customers reduce their insurance rates and manage their policies by aiding with modifications, renewals, and cancellations. As an Insurance Broker, you might work with both people and corporations. You may also represent firms that sell numerous types of insurance, such as car, life, and health. Some Insurance Brokers specialise in only one form of insurance. Because Insurance Brokers are paid a commission by each firm with which they work, they should not advocate for one insurer over another.
Nonetheless, some insurance firms pay prizes or presents to Insurance Brokers for bringing in clients, with bigger incentives for those who bring in more business.
Qualifications
Most companies like to see GCSEs (grades A-C) in English and maths on your CV, as well as A Levels (or equivalent) if you want to attend a training course. If you have any of the following degrees, you will undoubtedly impress an employer since these studies will teach you the required information and transferrable abilities:
- Accounting or finance
- Economics
- Banking and Finance
- Business or management
- Mathematics/statistics
- Public Administration
- Modern languages
- International business
- Risk management
Skills
must have skills:
As an Insurance Broker you will need to posses or acquire the following skills:
- Demonstrated experience as an Insurance Broker.
- Thorough understanding of insurance products.
- Basic understanding of office and accounting software.
- A strong desire to sell.
- Excellent interpersonal and communication skills.
- Advanced mathematical abilities.
- Dedication to detail.
- IT skills
- Organisational skills
- Excellent bargaining skills.
- Expertise in all sorts of insurance policies (automobile, fire, life, property, medical etc)
Work experience
With numerous forms of insurance available for purchase, there are numerous job opportunities for aspiring Insurance Brokers. You can opt to advise on every sort of insurance available or to pursue more training and become a specialist in a certain field.
In addition to formal education, there is one thing that all companies still look for on applications, it is prior insurance experience. Whether it’s through a junior position (e.g., Junior Account Handler, Trainee Insurance Technician, Administrator, etc.), an apprenticeship, or a graduate training scheme, all of them provide not only hands-on experience, but also the opportunity to study work-related qualifications at the same time. Many employers may wish to continue your training once you start, which can include both on-the-job training and assistance in studying for recognised insurance certifications.
Qualifications offered in the industry include:
- CII Certificate in Insurance – for trainee Insurance Brokers
- CII Diploma in Insurance
- CII Advanced Diploma in Insurance (ACII)
Career prospects
As an Insurance Broker, typically, you will specialise in one area of insurance, such as: Motor insurance Health insurance Risk Management Insurance Marine Insurance Home insurance
You might work in specialised departments of large corporations or for small speciality enterprises. Management positions are available, such as overseeing a team of Brokers or numerous offices of a brokerage business. There are additional opportunities to advance into adjacent fields including insurance underwriting or loss adjustment. With experience, you might advance to account management, claims processing, or company development. You might specialise in an insurance field, advance to management, or work in other areas of insurance such as loss adjustment, underwriting, or compliance.
Related Courses
The one-year full-time program at the University of the West of Scotland will provide you the executive training you need to launch a career in Insurance Brokerage. Because the London Campus is located in London’s financial area, it gives you a unique perspective on UK business and gives you an advantage in the lucrative employment opportunities available in the city.
This one-year, full-time program offered by the University of the West of Scotland London at their London campus is intended for those with relevant academic or professional experience who wish to pursue a career in Insurance Brokerage. Students benefit from the course by improving their critical thinking, problem-solving, analytical, and research skills. As a consequence, upon completion of the program, participants will be equipped with the knowledge and advanced skills required to establish careers in sales, insurance, finance, or finance-related sectors.
The University of the West of Scotland in London provides a one-year foundation degree that will prepare you for undergraduate courses and lay the groundwork for a Insurance related career. This course will introduce you to current research sources as well as practical case studies. Students will learn about important business courses while also improving their English language and study skills. With the knowledge obtained through the Business Foundation Programme, you will be well equipped to go to the undergraduate level with confidence.
Students can pick from a range of start dates for this two-year, eight-month full-time program offered by the University of the West of Scotland London. Students at UWS London can learn from industry experts, guest speakers, and seasoned professionals. The best part about this course is that it takes place on the London Campus, right in the heart of the United Kingdom.
This is a full-time program provided at the University of the West of Scotland’s London Campus, in the heart of the UK’s economic core. Students interested in a career in Insurance Brokerage will benefit from the one-year program, as it will prepare them for work. This class combines social science and communication.
FAQ Summary
An Insurance Broker is a specialist that serves as a go-between for a customer and an insurance company, assisting the former in finding the best coverage for their requirements.
Salaries for this position will vary depending on your degree of expertise, employer and geographic region. UK salaries for Insurance Brokers range from £20,000 to £60,000. In comparison, Insurance Brokers in London earn an average of £44,143, with salaries ranging from £22,000 to £94,000.
Most companies like to see GCSEs (grades A-C) in English and maths on your CV, as well as A Levels (or equivalent) if you want to attend a training course.
