What is Insurance Agent?
Generally, an agent is someone who takes sales possession of an insurance product on behalf of insurance company i.e his boss or principal. In the world of insurance, an insurance agent is a person who works for an insurance company and sells the insurance products of this company. They are mandated to sell insurance policies on behalf of an insurance firm.
An Insurance agent is not restricted to working with a particular Insurance company. However, they are free to sell Insurance policies of as many Insurance companies as they want, to individuals and corporate bodies, depending on their needs, as big as Insurance companies are, so also are Insurance Brokerage firms.
Insurance Agents are responsible for identifying sales opportunities for insurance plans and overseeing a portfolio of clients.
Also known as Insurance Sales Agents, these professionals are responsible for identifying risk management strategies, handling policy renewals, and tracking claims. Basically, an insurance agent receives a salary, sales base commission, allowances, and other bonuses accruing to him after playing his roles on good terms with the insurance companies.
Duties of an Insurance Agent
a. An insurance agent must be accountable to his principal (insurance company) with regard to income spending.
b. It is the duty of an insurance agent to create awareness about the existence of a particular product
c. Develop marketing strategies and promote all types of new insurance contracts or suggest additions/changes to existing ones
d. Breed productive relationships to create a pool of prospective clients from various sources by networking, cold calling, using referrals, etc
e. Evaluate business or individual customers’ needs and financial status and propose protection plans that meet their criteria
f. Work with clients to deliver risk management strategies that fit their risk profiles
g. Report the progress of monthly/quarterly initiatives to stakeholders
Maintain bookkeeping systems, database, and records
h. Monitor insurance claims to ensure mutual satisfaction
i. Achieve customer acquisition and revenue growth objectives
j. Constantly update job knowledge and learn about new products and services
k. Fulfill all policy requirements
What is expected from an insurance agent?
An insurance agent must put the basic needs of his client first and ensure he has a strong knowledge of various policies. Also, they should be reliable and free from any criminal records and must have sound communication skills to be able to imbibe with the market trends.
However, an Insurance Agent works closely with clients to provide insurance coverage. They can also work alongside other agents and Insurance Brokers. Note: To be successful in the industry, new agents should understand the skills and attributes that are common among top producers.
Qualities of a good insurance agent
Anyone hoping to become an insurance agent someday should ensure he has the following qualities.
a. The potential of putting the client’s needs first before any other thing: An agent who is more interested in his personal benefit, not considering the needs of the customers is likely to fail in the long run. This is because if clients are not treated fine they likely reduce their patronage power and there making the business selling power reduce.
b. A wide array of products: As the old saying goes, if all you have to work with is a hammer, then everything in the world looks like a nail. A good insurance agent will be able to offer a comprehensive selection of products and services that can meet any reasonable need a client might have.
c. Fidelity Attitudes an agent: an agent must ensure he has no criminal plan with regard to how he can defraud his clients.
d. Resilience or Persistency: This is perhaps the most vital quality of any good insurance agent. Those who work in this field absolutely must be able to handle rejection on a daily basis over the course of their careers and do it with a smile.
e. Emotional intelligence. This includes the ability to listen and empathize with clients on a deeper level in order to discern what they really want and need. A good agent is tactful and knows how to help a client see financial reality clearly, even when the client is dead set against it.
f. Identification of new sales opportunities: Insurance Agents are responsible for identifying sales opportunities for insurance plans and overseeing a portfolio of clients.
An Insurance Agent is a professional who works for an insurance company to ensure individuals are protected from unfortunate illnesses or accidents. They negotiate and buy coverage to fit any need, whether you’re an individual looking for health insurance or a business owner needing property protection.
An insurance agent plays a major role in providing skillful advice to prospective clients on the best coverage to take. They stand in between the insurance company (principal) and the clients (insurance customers).