An insurance broker is an intermediary who sells, solicits, or negotiates insurance on behalf of a client for compensation.
Below are steps to Become An Insurance Broker in South Africa
Step 1: Earn a Bachelor’s Degree
Although it isn’t required, a bachelor’s degree on your resume could increase your chances of gaining employment with an insurance brokerage firm.
Degree programs in business administration or economics provide you with the necessary background in finance, accounting, business law and marketing.
Step 2: Add an Internship to Your Insurance Broker Training
Some bachelor’s degree programs in insurance and risk management provide internship opportunities with insurance firms. During an internship, you’ll observe and participate in the internal operations of the firm.
Step 3: Obtain an Insurance Broker License
You need a broker’s license from each state in which you plan to work. Licenses are available for life, personal, property and casualty insurance. Broker’s licenses and agent’s licenses are different, although as a broker, you can still hold an agent’s license and work for companies as an agent.
Step 4: Find a Job
At a brokerage firm, you can expect to start out either at the customer service desk or as a broker’s assistant.
As you gain familiarity with the industry and your employer’s business practices, you can become a customer service rep (processes insurance transactions under supervision), personal lines rep (provides detailed coverage for personal belongings and homes) and commercial line rep (commercial and business insurance).
How do I get my insurance broker license?
Fees and Documentation
Before receiving a broker’s license, you must submit an application with the required documentation, including proof of an approved prelicensing course. Also, most states require you to have an appointment, or employment verification, from a qualifying or sponsoring company.
How do I register as a broker?
apply for membership in an SRO, such as FINRA or a registered national securities exchange; give notice that you conduct government securities activities; or. apply for broker-dealer registration with each state in which you plan to do business.
What type of insurance broker makes the most money?
The sales commission life insurance agents might earn in the first year if they are on a commission-only salary; that’s the highest commission for any type of insurance.
How do I study for the insurance broker exam?
The Top 5 Tips to Prepare for the Insurance Agent Exam
Prepare your sleep cycle for the exam.
Understand the test and the test-taking format.
Allow yourself the proper amount of time to study.
Engage with the material in a variety of ways.
Enroll in a prep course that offers multiple resources.
How many times can I take the life insurance exam?
three times
You can take the exam three times in one year. If you fail it all three times, you will have to complete prelicensing education again before you can take it for a fourth time the following year.
Do insurance brokers make good money?
An insurance broker makes money off commissions from selling insurance to individuals or businesses.
Most commissions are between 2% and 8% of premiums, depending on state regulations. Brokers sell all insurance types, including health insurance, homeowner insurance, accident insurance, life insurance, and annuities.
Is selling life insurance a good career opportunity?
For those who like helping people and don’t mind hard work, the answer is yes. Life insurance agents sell policies and annuities. They work with all kinds of clients and beneficiaries, and most agree that it is a rewarding career.