An insurance broker is a professional who acts as an intermediary between a consumer and an insurance company, helping the former find a policy that best suits their needs.
What Does An Insurance Broker Do?
Insurance brokers are trained professionals in insurance and risk management solutions who help individuals and businesses find insurance policies that best meet the needs of their customers.
They may focus on a single type of insurance, or work with many different types, such as home, life, or health insurance. Whatever type of insurance they sell to clients, insurance brokers need to be well-versed and articulate to explain complex insurance terms.
Can anyone be an insurance broker?
To become an insurance broker, you usually have to complete a VET qualification. In addition, several years of experience with a qualified broker are usually required before becoming an independent broker. Entry to these courses usually requires Year 12 and, as a minimum, employment with an insurance brokerage.
Who licenses the insurance broker?
The principal officer has the adequate Qualification, passed the Brokers exam and has acquired requisite training. The company engages at least two persons with the required qualification and training. It has sufficient infrastructure and trained manpower to run the insurance broking business.
Do you need a degree to sell insurance?
You don’t need a college degree to become an insurance agent; some agents just have a high school diploma. However, completing a bachelor’s degree in a business-related field can prepare you for your career in insurance. “They might consider hiring a high school graduate who has proven sales ability.”
The table below profiles basic insurance broker requirements.
| Education Required | High school diploma; bachelor’s degree is preferred |
| Education Field of Study | Business, finance, economics, insurance |
| Key Skills | Customer service, interpersonal communication, initiative, persuasion |
| Licensure/Certification | Licensure is required to sell insurance policies in the state in which the broker works; certification is voluntary |
| Job Growth (2016-2026) | 10% (for all insurance sales agents)* |
| Median Salary (2018) | R 764722.76(for all insurance sales agents)* |
Below are steps to Become A 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. After it ends, you may have to submit a written report describing the experience while the employer provides a written evaluation to your instructor.
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. Some states are moving away from the two types of licenses and requiring both agents and brokers to obtain a producer’s license.
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).
Step 5: Obtain Insurance Broker Certification
For professional development and career advancement, consider certification in an area of insurance where you’ve acquired expertise. The National Alliance for Insurance Education and Research offers a number of voluntary certifications for independent agents or brokers. These include the Certified Insurance Counselor (CIC), the Certified Insurance Service Representative (CISR) and the Certified Risk Manager (CRM).
Educational Requirements to Become An Insurance Broker South Africa
University graduates may be interested in applying for a graduate training scheme. Graduate trainees enter at a more senior level and are usually offered a permanent job at the end of their training programme.
How do I get my insurance broker license in South Africa ?
Fees and Documentation
Before receiving a broker’s license, you must submit an application with the required documentation, including proof of an approved relicensing course. Also, most states require you to have an appointment, or employment verification, from a qualifying or sponsoring company.
How much does it cost to start an insurance company in South Africa?
The current minimum capital requirements are ZAR10 million for a long-term insurer/reinsurer and ZAR5 million for short-term insurer/reinsurer
Where can I study insurance in South Africa?
The Bachelors in Insurance & Risk Management at the University of the Witwatersrand in Johannesburg, South Africa is an education programme which provides students a comprehensive knowledge in the field of risk management and insurance.
How do I study for the insurance broker exam in South Africa ?
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 do I sell my insurance in South Africa?
The work you’ll need to do consists of four steps:
Create your insurance products.
Partner with an underwriting insurer.
Consider getting a reinsurance partner on board.
Get an FSP license.
Is the life insurance exam hard in South Africa ?
The Life and Health exam can be challenging. The level of difficulty of the exam will depend on your current knowledge, previous work experience, and how well you prepare. It is important that you create a good study plan and prepare with an online training provider.
Can anyone be an insurance broker?
To become an insurance broker, you usually have to complete a VET qualification. In addition, several years of experience with a qualified broker are usually required before becoming an independent broker. Entry to these courses usually requires Year 12 and, as a minimum, employment with an insurance brokerage
Is it cheaper to go through an insurance broker in South Africa ?
It’s not necessarily cheaper to buy insurance directly from the company online or through an agent. An agent can help you get insurance quotes and shop around for the best price for you. Insurance agents are experienced in the insurance industry and can often find you a good deal.
What exactly does an insurance broker do in South Africa ?
An insurance broker is a professional who acts as an intermediary between a consumer and an insurance company, helping the former find a policy that best suits their needs. Brokers sell all insurance types, including health insurance, homeowner insurance, accident insurance, life insurance, and annuities.
What’s the difference between an insurance agent and broker?
There are two main differences between insurance agents and brokers: Agents represent insurers, while brokers represent consumers. Agents can complete insurance sales (bind coverage), while brokers cannot.