Getting into a career in insurance can be pretty straightforward, but how long does it take to move up in the industry? What opportunities lie ahead, and how do you establish a long-term career path?
For those just getting started in this industry, it may not be obvious what roles are available to seasoned insurance professionals. Some may not locate these opportunities until years into their career. We’d like to save you a bit of time and make it clear what’s possible right away.
Most newly licensed producers start out working for an independent local insurance agency or an insurance carrier. They will typically sell insurance products to individual consumers looking for coverage and often, the journey begins by selling Personal Lines of coverage such as Homeowners and Auto coverage.
Get Into Commercial Lines
The money is made in commercial lines. Specializing in this side of property and casualty insurance can yield higher premiums, which yield higher commissions. Commercial lines of insurance are more complex and often require learning a bit about that specific line of industry. For example, there are agents that sell commercial auto coverage. This is often very high premium coverage but requires you to understand the different types of coverage that insure various types of commercial auto such as business fleets, passenger vehicles, school buses, short-haul and long-haul trucking, food trucks, medical transport vehicles, snow clearing vehicles, and more!
Another more lucrative area of commercial lines of insurance is commercial property. Learning how to offer policies for storefronts, warehouses, apartment complexes, developments, and mixed-use properties can yield a higher return on commissions.
Add Designations to Your Continuing Education Lineup
There are several designations that those with a producer’s license can work toward, which will greatly impact your ability to get hired and your overall knowledge in the industry. One of the top designations to garner is the CPCU; however, there is also the AINS and several other useful designations you can acquire to impact your ability to ask for more when looking for a new role or to ask for more in your current position. Become the most knowledgeable person in the office. This will always be the best way to increase your income potential in the insurance business.
Move Into Underwriting
In this article, we talk about what an underwriter is; however, underwriting is one of the more lucrative pathways to making a higher income in this industry. Underwriters typically become more specialized in the type of insurance they’re marketing, and they often market directly to agencies and agents rather than the general public. Whether selling directly to consumers or agents, these roles are often higher paying out of the gate as they’re usually within a carrier or an insurance broker. Underwriters may have the benefit of capturing the same amount of commission as the agent on the sale of a policy but may also start out at a higher base salary. The growth potential for a great underwriter is strong as they can move up within a company. Those employed at these companies have room for upward mobility because they’re larger entities than an independent insurance agency.
Start Your Own Insurance Agency
That’s right; you can start your own insurance agency once you’ve had enough experience and built the right contacts in the industry. Most first-time agency owners will operate a franchise-like small independent agency that is a captive agency and offers policies for one carrier; however, they can often sell some specialty insurance from other brokers if the carrier doesn’t offer it – making it a worthwhile and profitable step. More established agents may seek to start an agency and remain solely independent. They will need to gain access to carriers and brokers, so it will be important that they have a solid background in selling insurance before they go into this model, but this is how small agencies grow into mid-size and large agencies, bringing tens, then hundreds, then maybe thousands of policies into their agency. Visit Trusted Choice and look up your state and county to view some of these local agencies. Check out their about pages to see how they got started and how they’ve grown!
Get Into Marketing or Leadership
Once you’ve had a few years of being an agent under your belt, or you’ve been in agency leadership, or have been a successful underwriter, you may seek to apply for a position as a Marketing Representative at a broker or a carrier. These roles are more sales-oriented but often pay well and allow for some travel and social engagement. If that’s not your interest, consider moving into leadership within a larger insurance agency, broker, or carrier. Leadership positions in the insurance industry can pay well and be very rewarding. Look for roles in operations, sales, service, or wherever you feel you may enjoy being part of the organization’s larger goals.
We hope these ideas have helped you envision a strong career path and future in the insurance industry. The first step in this industry, of course, is to get your license. Once licensed, the sky is the limit to what you can achieve.
