what is an insurance broker?
As an insurance broker, you are a licensed financial advisor who helps people find insurance products that meet their needs. You assist clients with assessing risks and determining which assets require insurance. With access to various insurance products from different providers, you can identify suitable policies and advise clients on special conditions or situations that must be addressed.
Aside from identifying insurance products, you help clients determine the appropriate level of coverage. You provide information on policies, including costs, benefits, and exclusions, to help identify suitable policies. You also arrange coverage with chosen insurers and act on behalf of your client during the claim process.
Insurance brokers work for companies and firms that provide consultancy services on insurance products. You advise clients from various industries and help them obtain the right insurance products for their needs.
view vacanciesaverage insurance broker salary
If you're considering a career as an insurance broker, it's important to understand the potential earnings. As a starting point, entry-level positions typically offer a compensation package of $90,000 per year. With experience and advanced education, professionals in this field can earn over $180,000 annually. It's worth noting that salary can vary based on factors like education level, location, and company size.
what factors affect the salary of an insurance broker?
The salary of insurance brokers is based on their level of skill and experience. If you have minimal experience, you will earn less than someone who has been working in the field for longer. Additionally, having certain qualifications, such as a licence, can lead to a higher salary. The types of insurance policies you sell also affect your earnings, with high-value products earning you commissions. Lastly, your location can impact your salary, with metro areas typically offering higher pay than smaller cities.
Want to know what you will earn as an insurance broker? Check out what you are worth with our salary checker.
types of insurance brokers
Some of the types of insurance brokers include:
- commercial insurance brokers: as an insurance broker, you sell insurance products that cover an entire franchise. If a company has multiple potential risks, you find an insurance product that covers employees and business assets. Commercial insurance offers an overarching package from a single insurance provider.
- independent insurance brokers: sometimes, you work on behalf of a specific insurance provider. However, an independent insurance broker is not tied to any company or insurance provider.
- car insurance brokers: as an insurance broker, you find suitable options for clients who want vehicle insurance. You identify the insurance package that suits clients based on the available options.
- health insurance brokers: as a health insurance broker, you help clients identify the best medical insurance for their needs. You offer various insurance products from various providers and help clients identify the health insurance suitable for their needs.
working as an insurance broker
Are you interested in working as an insurance broker? Let’s explore the duties and responsibilities of an insurance broker.
-
insurance broker job description
Some of the daily duties of an insurance broker include:
- understanding client requirements: as an insurance broker, you work with clients and build relationships with them. Your job is to identify what the clients need. After assessing the assets they want to insure, you determine the best insurance products.
- conducting extensive research into insurers: as an insurance broker, you research insurers and their packages. You review the terms and conditions of the insurance products before selling them to clients. You also check the requirements for becoming eligible for a certain insurance package.
- helping clients get insurance: as an insurance broker, you review a client's eligibility for an insurance product and help them complete the application process. You also identify opportunities for adding policies to the insurance package.
- helping clients make insurance claims: as an insurance broker, you act on behalf of clients in the event of insurance claims. You help them report the incidents to insurance companies and complete the paperwork to make claims.
-
work environment
Insurance brokers work in an office environment. You spend most of the day researching new insurance products and understanding various policies. While you spend significant time in the office, you often travel to meet clients and discuss various insurance policies. You also attend workshops and events to promote your company’s products.
-
who are your colleagues?
Depending on your employer and the industry you work in, your colleagues might include insurance agents, financial advisors, finance assistants, and customer service representatives. You might also be working in close proximity to office managers, assistant managers, and mortgage advisors, as well as other specialists that could include, but not be limited to operations managers, actuaries and underwriters.
-
work schedule
As an insurance broker, you can expect to work between 35 to 40 hours per week, typically from 9 am to 5 pm. Occasionally, you may need to work in the evenings or weekends when meeting with clients or attending workshops. Additionally, some insurance brokers work part-time or on a contract basis. If you prefer to work from home, remote work opportunities may also be available.
-
job outlook
An insurance broker career offers a promising job outlook in the insurance and financial advisory services sector. You work for insurance companies and financial institutions, giving you great growth opportunities. You can progress to managerial roles in finance and insurance companies. Some insurance brokers specialise in providing specific products.
-
advantages of finding an insurance broker job through randstad
Finding your insurance broker job through Randstad provides important advantages such as:
- a wide variety of training and development opportunities
- an experienced contact person to provide help if needed
- a range of opportunities in your area
- get paid weekly or monthly, depending on the job
- temporary and permanent contracts
Want a permanent contract? A temporary job as an insurance broker is often a stepping stone to an attractive permanent job. Thousands of people earn a permanent contract every year with great employers thanks to a temporary job found through Randstad. What's more, many companies recruit their permanent employees through Randstad too.
education and skills
You require academic qualifications to become an insurance broker, including:
- vocational education and training: to become an insurance broker, pursue a course in a VET college, like a Certificate III in financial services, to prepare you for entry-level duties. Alternatively, complete a diploma in insurance broking that takes 12 months.
- licence and work experience: gain work experience by working under a licensed insurance broker. Applying for a licence with the Australian Securities and Investments Commission (ACIS) is also important. You can practise insurance broking with the Australian Financial Services Licence (AFSL).
insurance broker skills and competencies
Some of the qualities of an insurance broker include the following:
- communication skills: as an insurance broker, it's important to have strong communication skills, including verbal and written abilities, as well as active listening skills. You should also be able to read non-verbal cues. Communication is a key part of the job, as you'll need to explain risks and policy details to clients, while also listening carefully to their needs and concerns.
- customer service skills: as an insurance broker, building relationships with clients and insurance providers is crucial for success. Developing strong customer service skills is essential to being approachable and empathetic towards clients' needs. By utilising these skills, you can establish lasting connections with clients and insurance providers, and ultimately offer the best insurance products available.
- patience: as an insurance broker, you sell insurance products to clients. The role requires patience and persistence. While some clients quickly decide on the insurance products they require, some need more conviction. Patience helps you explain the terms of the insurance policies and help clients make informed decisions.
- ability to learn quickly: as an insurance broker, you have diverse insurance products to offer clients. You require an in-depth understanding of the insurance products to explain the options to clients. Your ability to learn quickly helps you understand how the policies operate and troubleshoot problems.
- research skills: as an insurance broker, you require exceptional research skills. When new insurance products are introduced to the market, you identify their requirements and benefits. Your research skills are also useful for identifying insurers and insurance products.
FAQs about working as an insurance broker
Here, you will find the answers to the most frequently asked questions about the profession of an insurance broker.
-
what are the key duties of an insurance broker?
as an insurance broker, your main responsibilities are to research various insurance policies and products, and provide expert advice to clients on the most suitable options. You also establish and maintain strong business relationships with both insurance companies and clients. Building a strong rapport with clients enables you to accurately assess their present and future insurance needs, as well as negotiate favourable policy terms and costs.
-
what is the difference between an insurance agent and an insurance broker?
Insurance brokers and agents are responsible for selling policies to clients. While insurance agents can only offer products from a single provider, insurance brokers work on behalf of clients to find the best policies from multiple providers.
-
how much does an insurance broker make?
As an insurance broker, it's your job to assist clients in comprehending insurance products and making informed decisions. Your salary varies depending on your experience and qualifications, but on average, you make $80,000 per year. With an entry-level qualification, your yearly salary is $70,000, but with more experience and academic qualifications, you could earn up to $90,000 in your remuneration package.
-
how do you become an insurance broker?
If you want to become an insurance broker in Australia, you'll need to complete vocational education and training to learn about the job. Your courses must meet the requirements set by the Australian Securities and Investments Commission. Additionally, obtaining an Australian Financial Services Licence (AFSL) is crucial. Keep in mind that some insurance companies may have their own licensing requirements as well.
-
is insurance broker a good career?
The insurance broker profession is an exciting career path that offers many opportunities for personal growth. As an insurance broker, you can develop valuable skills that can help you advance in your career. Additionally, insurance brokers can earn a generous salary and have the potential to earn even more through commissions.
-
how do I apply for an insurance broker vacancy?
Applying for an insurance broker job is easy: create a Randstad profile and search our job offers for vacancies in your area. Then send us your CV and cover letter. Need help with your application? Check out all our job search tips here.
