Most people have their first contact with an insurance company through an insurance sales agent. These workers help individuals, families, and businesses select insurance policies that provide the best protection for their lives, health, and property.
Insurance sales agents, commonly referred to as "producers" in the insurance industry, sell one or more types of insurance, such as property and casualty, life, health, disability, and long-term care. Property and casualty insurance agents sell policies that protect individuals and businesses from financial loss resulting from automobile accidents, fire, theft, storms, and other events that can damage property. For businesses, property and casualty insurance can also cover injured workers' compensation, product liability claims, or medical malpractice claims.
Life insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies. Depending on the policyholder's circumstances, a cash-value policy can be designed to provide retirement income, funds for the education of children, or other benefits as well. Life insurance agents also sell annuities that promise a retirement income. Health insurance agents sell health insurance policies that cover the costs of medical care and loss of income due to illness or injury. They also may sell dental insurance and short-term and long-term-disability insurance policies. Agents may specialize in any one of these product areas, or function as generalists, providing multiple products to a single customer.
An increasing number of insurance sales agents are offering comprehensive financial planning services to their clients. These services include retirement planning, estate planning, and assistance in setting up pension plans for businesses. As a result, many insurance agents are involved in "cross-selling" or "total account development". Besides offering insurance, these agents may become licensed to sell mutual funds, variable annuities, and other securities. This practice is most common with life insurance agents who already sell annuities, but many property and casualty agents also sell financial products.
Insurance sales agents also prepare reports, maintain records, and seek out new clients. In the event that policy holders experience a loss, agents help them settle their insurance claims. Increasingly, some agents are also offering their clients financial analysis or advice on how to minimize risk.
Insurance sales agents working exclusively for one insurance company are referred to as captive agents. Independent insurance agents, or brokers, represent several companies and match insurance policies for their clients with the company that offers the best rate and coverage.
Technology has greatly affected the insurance business, making it much more efficient and giving the agent the ability to take on more clients. Agents' computers are now linked directly to insurance carriers via the Internet, making the tasks of obtaining price quotes and processing applications and service requests faster and easier. Computers also allow agents to be better informed about new products that the insurance carriers may be offering.
The growing use of the Internet in the insurance industry has altered the relationship between agent and client. Agents formerly used to devote much of their time to marketing and selling products to new clients. Now, clients are increasingly obtaining insurance quotes from a company's Web site and then contacting the company directly to purchase policies. This interaction gives the client a more active role in selecting their policy, while reducing the amount of time agents spend actively seeking new clients. Insurance sales agents also obtain many new accounts through referrals, so it is important that they maintain regular contact with their clients to ensure that the clients' financial needs are being met. Developing a satisfied clientele that will recommend an agent's services to other potential customers is a key to success for agents.
Increasing competition in the insurance industry has spurred carriers and agents to find new ways to keep their clients satisfied. One solution is to increase the use of call centers, which usually are accessible to clients 24 hours a day, 7 days a week. Insurance carriers and sales agents also are hiring customer service representatives to handle routine tasks such as answering questions, making changes in policies, processing claims, and selling more products to clients. The opportunity to cross-sell new products to clients will help agents' businesses grow. The use of call centers also allows agents to concentrate their efforts on seeking out new clients and maintaining relationships with old ones.
Work environment. Insurance sales agents working as captive agents are usually based in small offices, from which they contact clients and provide information on the policies they sell. Independent insurance agents, or brokers, may work in offices of varying sizes, depending on the size of the agency. However, much of their time may be spent outside their offices, traveling locally to meet with clients, close sales, or investigate claims. Agents usually determine their own hours of work and often schedule evening and weekend appointments for the convenience of clients. Some sales agents may meet with clients during business hours and then spend evenings doing paperwork and preparing presentations to prospective clients. Although most agents work a 40-hour week, some work 60 hours a week or longer.
| 1. | Call on policyholders to deliver and explain policy, to analyze insurance program and suggest additions or changes, or to change beneficiaries. |
| 2. | Calculate premiums and establish payment method. |
| 3. | Customize insurance programs to suit individual customers, often covering a variety of risks. |
| 4. | Sell various types of insurance policies to businesses and individuals on behalf of insurance companies, including automobile, fire, life, property, medical and dental insurance or specialized policies such as marine, farm/crop, and medical malpractice. |
| 5. | Interview prospective clients to obtain data about their financial resources and needs, the physical condition of the person or property to be insured, and to discuss any existing coverage. |
| 6. | Seek out new clients and develop clientele by networking to find new customers and generate lists of prospective clients. |
| 7. | Explain features, advantages and disadvantages of various policies to promote sale of insurance plans. |
| 8. | Contact underwriter and submit forms to obtain binder coverage. |
| 9. | Ensure that policy requirements are fulfilled, including any necessary medical examinations and the completion of appropriate forms. |
| 10. | Confer with clients to obtain and provide information when claims are made on a policy. |
| 11. | Perform administrative tasks, such as maintaining records and handling policy renewals. |
| 12. | Select company that offers type of coverage requested by client to underwrite policy. |
| 13. | Monitor insurance claims to ensure they are settled equitably for both the client and the insurer. |
| 14. | Develop marketing strategies to compete with other individuals or companies who sell insurance. |
| 15. | Attend meetings, seminars and programs to learn about new products and services, learn new skills, and receive technical assistance in developing new accounts. |
| 16. | Inspect property, examining its general condition, type of construction, age, and other characteristics, to decide if it is a good insurance risk. |
| 17. | Install bookkeeping systems and resolve system problems. |
| 18. | Plan and oversee incorporation of insurance program into bookkeeping system of company. |
| 19. | Explain necessary bookkeeping requirements for customer to implement and provide group insurance program. |
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