An insurance broker works with multiple insurance companies to find the best policies for clients, while a typical agent works for one company. Both require licensing and may attend seminars to stay updated on trends. Brokers may specialize in different types of insurance and may require special training for investment-related insurance. Some agencies offer tuition reimbursement for employees to continue their education.
An insurance broker is an independent insurance agent who works with many insurance companies to find the best available policies for their clients. A typical insurance agent works for a specific company and chooses within that company’s policies for clients. While a broker is different from the typical agent in this regard, the two are similar. Both structure policies, settle claims, and generally work on commission.
In most states, both the insurance agent and broker must be licensed, after passing an insurance exam. While formal education or degrees are not necessarily necessary to do this job, they are helpful. Even if further education is not required to advance, it definitely creates an advantage for the person hoping to move up to the administrative level. Advancement and management experience is also beneficial to the agent hoping to become an independent agent. Someone in this job may also attend seminars and conferences to keep up to date on the latest insurance trends and legislation.
An insurance broker may specialize in a specific type of insurance or deal in many different types, including health, life, auto, home, and other specialized varieties of insurance, including pet policies. Those who choose to trade insurance of an investment nature require special training and must also obtain special licenses from the Securities and Exchange Commission or other associations that deal with investments.
Since all types of insurance are in high demand, good agents and brokers are also needed. This fact leads some insurance agencies to offer tuition reimbursement for employees to continue their education. Reimbursement may require an agreement to work for that agency for a specified period of time after completing the course of study or earning a degree, but after the agreed time frame, the agent is free to work for other companies or work for themselves. or herself.
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