Which Insurance Career Sales Choice to Take


One size does not fit all. There are three main options when it comes to insurance sales. Each option has its advantages and disadvantages. Don’t listen to the local ads for insurance. You must first decide which type of agent you wish to be. You will notice the differences between these three types. Each type is always looking for new agents in order to replace the ones that have failed.

Property casualty insurance agent These companies are well-known for the extensive advertising they do in magazines and on television. Many of these names, including Farmers, Nationwide Insurance, SF, Liberty Mutual, Farm Bureau and Farm Bureau, should be familiar to you. They make up one-third to one-third of all agents in the state as a whole.

A property casualty agent can also be called fire and casualty. They are responsible for writing a large portion of automobile, homeowners, liability, business, and other coverage. Many have licenses to write life and health insurance. Captive is the main word to describe these agents. These agents are very rare. They are often not allowed to take out coverage from another insurance company because of their contract.

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Another distinction is that almost all of them are a single-man office. A main agent could be assisting another agent, who may one day get their own office. You will find their office name in the phone directory if you search for one of these insurance companies. John Smith Insurance Agency is an example. One-man property casualty shops are very male-oriented and company-driven. These agents are able to manage the limitations of running a business and rarely change companies.

Independent Multiline Insurance Agent This type insurance agency sells auto insurance, home coverage, life insurance, and health insurance. Independent is the key word. Many insurance companies have many contracts. An agent might search six to eight companies before you call them for an auto quote.

Agent owners may require that their agents only sell coverage to companies with which they have major contracts. Agent owners may allow their agents to sell policies for life or health insurance with any of the over 500 companies they choose. For a while, you might be required to start as a customer service representative for an hourly wage. The owner might allow you to obtain your own license as an insurance agent. At least half of them must stay with the agency for their entire careers, even if they leave.

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The majority of customer service representatives are female. The owner agent is typically a male and may have a few offices in smaller cities. The average agency staff, except for business insurance, is about 80% female.

Insurance Captive Career Agency The agent represents one major life, health and annuity insurance company. Many potential agents are drawn to them by campus recruiters and newspaper ads. The first year turnover is high and female agents make up about 20% of all the agents. There may be a dozen to three hundred agents in an agency. While some agencies provide initial subsidies, many others offer little more than promises. Few agents are able to survive beyond years one, two and three. These agents are likely to switch to another company or, if they succeed, become fully independent.

This large group of agents is most vulnerable to falling prey to scams and dropping outs. But the most successful, well-respected agents are able to work in this category and move on to better pastures.