If you have ever contemplated becoming an insurance agent or wondered whether this career path could be right for you, there are several qualities that you will need to possess, at least to some degree. Selling insurance can be a lucrative proposition, with relatively high-paying commissions and a high degree of autonomy with flexible work hours.
However, it is not an easy job. You can expect a high rate of customer rejection, stress, and attrition rate. Still, all good insurance agents share some of the following skills and knowledge, plus core qualities in one way or another.
Key Takeaways
- Becoming an insurance agent can mean job independence and flexibility with potentially a high salary.
- Insurance sales jobs are highly stressful with little pay guarantee and is an industry with a high quit rate.
- To be successful in the industry, new agents should understand the skills and attributes that are common among top producers.
People Skills
1. Puts the needs of the client first. An agent who is only out to earn a commission, regardless of the needs of the client, is not likely to last long in the business. Agents and brokers who listen carefully to what their clients and prospects say will be able to earn their trust, which is the hardest part of their job.
When learning how to be a successful insurance agent, it's critical to know that agents who are willing to put their clients into a product that pays a lower commission because it better fits their needs are much more likely to retain customers.
2. Good customer service. Customers who are able to get hold of their agents when they need them are much more likely to stay happy and reassured. A timely response to inquiries and phone calls is a must, and you must be able to do what you say you will do,when you say you will do it, or at least have a good reason as to why you can't.
One of the major complaints of those who buy life insurance policies is that there is no one around to answer their questions after they have purchased the policy.
3. 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.
Personality and Reliance
4. High energy level. One of the most important traits of a good insurance agent is that they appear to be excited and eager at all times. A worn-down or dreary disposition will immediately rub off on clients and discourage them from buying anything.
5. Persistence. 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. Good insurance agents understand that each "no" only brings them closer to someone who will say "yes."
6. Honesty. Insurance agents who use deception to close business seldom stay with the same company for very long—and can end up behind bars in some cases. A good agent knows that telling the truth upfront will win them clients' respect and trust and is likely to lead to repeat business over time.
Product Knowledge
7. 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.
8. Technical know-how. A good insurance agent knows much more than how to sell a policy. The agent must understand the tax and legal aspects of the products they sell and how they are designed to fit into a client's overall financial situation. Many agents earn financial planning designations such as the Certified Financial Planner®, Chartered Financial Counselor, or other credentials. Some agents practice financial planning, income tax preparation, or some other avenue of financial service as their primary profession, and then add-in insurance business when it becomes necessary.
The Bottom Line
These items above are just some of the qualities that life insurance agents must possess in order to be successful. The life insurance business can be very challenging and immensely rewarding for those who are willing to learn the necessary skills to build their business.
For more information on how to become a successful insurance agent, contact the recruiting offices of a few different agencies or a headhunter who works with insurance agents.
FAQs
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.
What defines you as successful as an insurance agent? ›
Perhaps the most important personality trait for any successful insurance agent is passion. Great insurance agents are passionate about closing sales, about finding their clients the best coverage, and about understanding the ins and outs of every individual policy.
What makes you a good fit for an insurance company? ›
Selling skills is the key competency a successful insurance agent needs to possess. Knowledge of the insurance industry is important, but the ability to work with people and walk them through the selling process is the differentiator.
What characteristics should you consider in an insurance company? ›
Financial Solidity
You buy insurance to protect you financially and provide peace of mind. Select a company that is likely to be financially sound for many years, by using ratings from independent rating agencies.
What are the key responsibilities insurance agent? ›
Insurance Agent Job Responsibilities and Duties
- Identifies prospective clients through leads and referrals.
- Schedules client meetings.
- Performs follow-up calls as needed.
- Advises on insurance coverage.
- Conducts periodic policy reviews.
- Prepares insurance proposals.
- Completes requirements and submits to underwriters.
Important Qualities
- Analytical skills. Insurance sales agents must evaluate the needs of each client to determine the appropriate insurance policy.
- Communication skills. Insurance sales agents must listen to clients and be able to clearly explain suitable policies.
- Initiative. ...
- Interpersonal skills. ...
- Self-confidence.
You need to have a high level of emotional intelligence, good customer service acumen, and the desire to always put the needs of the client first. All of which will mean happier customers, and happier customers are more likely to remain loyal to your agency.
What is the personality test for insurance agents? ›
The SalesAP is a personality test designed specifically for screening prospective salespeople, and it measures a variety of traits that are linked to success in sales roles, such as achievement, competitiveness, sales disposition, and extroversion.
What is an insurance agent best described as? ›
Final answer:
An agent, in an insurance context, is a producer contracted by an insurer to represent them in selling their products. Roles of the agent often include selling policies, managing the insurer's client pool, and liaising between the insurance company and policyholders.
What describes an insurance agent? ›
An insurance agent represents one or multiple insurance companies and sells their policies, usually for a commission. To begin with, an insurance agent works with you to understand your budget and insurance coverage needs.
Taking the time to truly understand your client's business and unique company niche will help you identify gaps in coverage. Communicate in a meaningful way. People buy from insurance agents because they like knowing a competent professional is looking out for their best interests on an ongoing basis.
Is it hard to be a successful insurance agent? ›
Once you become a licensed agent, you probably want to be a successful one. There is no doubt about it: being an insurance agent is difficult. Agents must maintain expert product knowledge in a field that changes rapidly. Plus, the insurance industry is highly competitive.
Why is it important to have a good insurance agent? ›
Making sure you're getting the right insurance at the best price for your boat, car and other needs can be complicated. An insurance agent can help you understand what types of insurance are available and help you find the best fit for your needs.
How to ace an insurance interview? ›
What are the best interview preparation tips for the insurance industry?
- Research the company. Be the first to add your personal experience.
- Review your resume. ...
- Practice common questions. ...
- Prepare your own questions. ...
- Dress professionally. ...
- Be confident and courteous. ...
- Here's what else to consider.
For strengths, discuss how they can help you excel at the job. For example, if you're a motivated self-starter, focus on how that relates to the role you're applying for and how you believe this strength can benefit the company. For weaknesses, avoid anything that doesn't directly impact your professional performance.
Why would you be a good fit for this position as an insurance agent? ›
Sample Answer: I have a lot of experience in the insurance industry and have been successful in my previous positions. I've also taken courses on sales and negotiation tactics. I'm confident that I can help your company grow.
What are the 7 characteristics of insurance? ›
Principles of Insurance
- Utmost Good Faith.
- Proximate Cause.
- Insurable Interest.
- Indemnity.
- Subrogation.
- Contribution.
- Loss Minimization.
This means they should have a good reputation and be known for providing quality insurance policies and customer service. They should also have a solid financial standing so that if something does happen, you know they'll be able to cover your claim.
What are the four fundamental characteristics of insurance? ›
Basic Characteristics of Insurance
- Pooling of losses.
- Payment of fortuitous losses.
- Risk transfer.
- Indemnification.
The responsibilities of an agent are to find and sign talent, negotiate contracts, and get the best possible deals for their clients. They also need to be able to manage their clients' careers, which includes planning and executing promotional campaigns, bookings, and other opportunities.
An insurance agent has several responsibilities, but underwriting the contract is NOT one of them. Underwriting is done by the insurer, not the agent. The agent's responsibilities include submitting the application to the insurer, explaining policy provisions, and delivering the contract.
How do you describe an insurance agent on a resume? ›
Customer-focused Insurance Agent with 5 years of experience in the property and casualty insurance industry. Proficient in identifying coverage gaps and recommending appropriate policies to mitigate risks. Consistently recognized for exceptional customer service and maintaining a high client retention rate.
How do you introduce yourself as an insurance agent? ›
I am a life insurance agent who is passionate about helping my clients protect their families' futures. With over 5 years of experience in the industry, I have the knowledge and expertise to guide my clients through the insurance buying process for their unique insurance needs.
How do I become a confident insurance agent? ›
How to Be a Successful Insurance Agent
- Present yourself like the professional you are.
- Build customer relationships, and ask for referrals.
- Be proactive when client policies are almost up.
- Cross-sell or upsell other products tailored to your client.
- Improve SEO to make it easier for leads to find you.
