Insurance consultants help individuals and companies purchase insurance policies, calculating coverage needs and finding suitable policies. They also meet with clients regularly to determine if their needs have changed and are paid commissions linked to policy premiums.
Insurance consultants assist individuals and companies in purchasing insurance policies. Generally, an insurance consultant focuses on marketing one type of product, such as health insurance, life insurance or property insurance. Some consultants are full-time employees of insurance companies, while others are independent agents who work with many different clients.
Consultants are responsible for protecting their clients against future financial difficulties. These individuals meet with clients and discuss the client’s assets and liabilities. An insurance consultant must calculate how much insurance coverage a customer needs to replace or repair a property if it is damaged, lost or stolen. With life insurance products, consultants calculate how much money the policyholder’s beneficiaries would need to pay off the policyholder’s debts and compensate for the policyholder’s loss of income. Likewise, consultants provide clients with information about the type of health care expenses an individual or family unit may face over time.
Having determined the client’s needs, an insurance consultant must find suitable insurance policies to present. Ideally, a policy should provide the policyholder with ample coverage, but the cost of the policy should be within the range the customer can reasonably afford. Consultants employed by a specific company may only have a small range of products to recommend, while independent agents can typically sell policies on behalf of many different insurance companies. Good sales skills are important for a consultant because in many countries insurance companies compete aggressively for clients. A consultant can sell policies to individuals or groups of clients through employer-sponsored plans.
After convincing a client to purchase a policy, an adviser must fill out an application in which the client’s information is listed. In many cases, the insurance adviser needs to collect the initial premium from the customer and submit payment along with the application to the insurance provider. An insurance company may reject a claim from a high-risk individual or entity. In some cases, consultants need to liaise between the insurance underwriter and the claimant until a compromise is agreed on in terms of cost and level of coverage.
In addition to soliciting new sales, most consultants regularly meet with existing clients to determine if that individual’s needs have changed. Old contracts are sometimes replaced with new policies if the client and advisor agree that the old policy’s level of coverage is no longer sufficient. In addition, advisors make recommendations to clients about purchasing new types of policies as they enter different stages of their lives, such as purchasing annuities to create retirement income.
Typically, an insurance adviser is paid commissions linked to policy premiums. There are regulations in many countries that prevent consultants from deliberately making clients buy unnecessary insurance with the intention of generating extra commission. Insurance sales personnel are usually licensed and people who act unethically can be fined or stripped of their licenses.
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