Virginia VIEW: Career Advancement

Insurance Sales Agents

Career Advancement

For insurance agency jobs, most companies and independent agencies prefer to hire college graduates-particularly those who have majored in business or economics. A few hire high school graduates with proven sales ability or who have been successful in other types of work. In fact, many entrants to insurance sales agent jobs transfer from other occupations. In selling commercial insurance, technical experience in a field can be very beneficial in helping to sell policies to those in the same profession. As a result, new agents tend to be older than entrants in many other occupations.

College training may help agents grasp the technical aspects of insurance policies and the fundamentals and procedures of selling insurance. Many colleges and universities offer courses in insurance, and a few schools offer a bachelor's degree in insurance. College courses in finance, mathematics, accounting, economics, business law, marketing, and business administration enable insurance sales agents to understand how social and economic conditions relate to the insurance industry. Courses in psychology, sociology, and public speaking can prove useful in improving sales techniques. In addition, familiarity with computers and popular software packages has become very important, as computers provide instantaneous information on a wide variety of financial products and greatly improve agents' efficiency.

Insurance sales agents must obtain a license in the States where they plan to sell insurance. Separate licenses are required for agents to sell life and health insurance and property and casualty insurance. In most States, licenses are issued only to applicants who complete specified prelicensing courses and pass State examinations covering insurance fundamentals and State insurance laws. A number of organizations offer professional designation programs, which certify expertise in specialties such as life, health, property, and casualty insurance, or financial consulting. Although these are voluntary, such programs assure clients and employers that an agent has a thorough understanding of the relevant specialty. Many professional societies now require agents to commit to continuing education in order to retain their designation.

Indeed, as the diversity of financial products sold by insurance agents increases, employers are placing greater emphasis on continuing professional education. It is important for insurance agents to keep up to date with issues concerning clients. Changes in tax laws, government benefits programs, and other State and Federal regulations can affect the insurance needs of clients and the way in which agents conduct business. Agents can enhance their selling skills and broaden their knowledge of insurance and other financial services by taking courses at colleges and universities and by attending institutes, conferences, and seminars sponsored by insurance organizations. Most States have mandatory continuing education requirements focusing on insurance laws, consumer protection, and the technical details of various insurance policies.

As the role of financial planners increases, many insurance agents are choosing to gain the proper licensing and certification to sell securities and other financial products. This includes passing an additional examination. Before agents can qualify as securities representatives, they must pass the General Securities Registered Representative Examination (Series 7 exam), administered by the National Association of Securities Dealers (NASD). To further demonstrate competency in the area of financial planning, many agents also find it worthwhile to obtain a Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFC) designation. Insurance sales agents should be flexible, enthusiastic, confident, disciplined, hardworking, willing to solve problems, and able to communicate effectively. They should be able to inspire customer confidence. Because they usually work without supervision, sales agents must be able to plan their time well and have the initiative to locate new clients.

An insurance sales agent who shows ability and leadership may become a sales manager in a local office. A few advance to agency superintendent or executive positions. However, many who have built up a good clientele prefer to remain in sales work. Some, particularly in the property/casualty field, establish their own independent agencies or brokerage firms.