How much do insurance agents make?

Submitted by scottdwayne7 on Tue, 11/13/2007 - 14:43
Insurance agents can have a rewarding career, and more so, since nowadays individuals have recognized the need for having insurance protection. However, it's difficult to predict the exact earnings of an insurance agent. That is because, an agent's earnings depend on his client base and how much insurance coverage he can sell. Thus, the more you put your effort as an agent, the more policies you'll sell and the more will be your income.

To know how an insurance agent earns, you must be aware of their mode of work. Based on how they work, insurance agents are broadly classified into two types:

  1. Captive agents - Those who represent a particular insurance company.
  2. Independent agents - Those who sell insurance products from various insurance companies.
Top

How much do the Captive agents earn?

Captive agents are employees of an insurance company and usually have fixed wages. The initial few months would be the training and learning phase for such an agent. Thereafter, the insurers usually set a target for each agent which has to be fulfilled within a pre-determined time period. According to his or her performance, his or her salary gets revised. There might even be a scope of earning performance bonuses, after the agent meet the target. The salary structure usually depends on a number of factors like the location, the company etc.

Top

How much do the Independent agents earn?

The independent agents represent multiple companies. They don't get a fixed remuneration from the insurance companies. They usually receive a percentage commission from the insurer, which depends on the amount of insurance they sell. Moreover, revenue is only generated on sale of new policies. Thus, to earn more, the agents need to sell more insurance policies.

Top

What is the range of income?

The average income of an insurance agent is around $62,970 for a year, as the May 2011 reports of the Bureau of Labor Statistics have pointed out. However, since the individual income is generally based on the commissions earned, skilled agents having a large number of clients can earn much more than the BLS mean. The yearly income of around 50 percent of the agents ranges from $33,850 to $72,490, with the experienced ones earning as high as $115,300 on an average per year or even more than that.

Employment Annual mean wage Annual median wage
$3,21,780 $62,970 $47,450

Area Names Employment Annual mean wage Annual median wage
Arizona $6,390 $51,980 $40,750
California $23,890 $75,140 $59,240
Florida $26,940 $59,420 $46,530
Kansas $4,070 $56,010 $45,130
Nevada $2,250 $51,580 $35,640
New York $18,580 $74,890 $57,180
Texas $26,490 $57,820 $40,630
Washington $5,830 $54,710 $46,770
source

Top

How much can be the agent commission?

The independent agents working for the insurance companies usually earn from the commissions after each policy sale. The agent compensation is usually paid only for the initial year of a new policy. The agents selling homeowner's insurance and auto insurance receive around 10 to 15 percent commission on the first year's policy premiums. The allowed compensation depends on the insurers though, and can be as low as 8 percent or as high as 15 percent. Life insurance agents earn a lot more, typically in the first year only. They usually receive most of the premium that the policy holder pays in the first year, or even all of it at times.

Top

Is there a scope for earning more?

Apart from the standard commissions which solely depend on each individual agent's performance, the insurance agents have the scope of earning more if the client renews the coverage. The renewals commissions typically range between 2 to 5 percent for each policy.

Along with that, any insurance companies also offer year-end bonuses and non-cash rewards like trips and prizes for the insurance agents.

Top

Reading discussions & reading

How much do insurance agents make? Do insurance agents make good money at all ?

Posted: 23 Jun 2010 03:16 Post Subject: start up

how much does it take financially to start up a basic auto insurance company

Posted: 25 Jun 2010 09:49 Post Subject:

I'm with AmeriPlan. Even though I'm personally not an Insurance Agent, I have a lot of them on my team.

They do really well because they already have prospects coming in and they just have one more service to offer them. I think it really works out great for them since if you are working with someone that will not quailify or simply can not afford the monthly premium you'd then be able to present AmeriPlan.

Being licensed and selling life/health insurance is very profitable...its also very expensive to purchase leads, continuing education, etc. Things that are very hard to maintain if you are just starting out, you don't make a profit initially. AmeriPlan is different considering the monthly maintenance fee and the marketing is very affordable.

AmeriPlan offers daily pay, weekly bonuses, monthly residual income, awesome and easily attainable commission plan, bonus builder overrides etc.

Just thought I would share that for those looking to add a product line to your exisiting portfolio and in turn increasing your income.

Much success to you all!
~TaVona

Posted: 31 Jul 2010 06:46 Post Subject: ques. abt commision

what was the earlier commision rate which an insurance agent gets before the change in irda guidelines?

Posted: 31 Jul 2010 06:48 Post Subject: thanks

thanks

Posted: 23 Sep 2010 09:23 Post Subject:

what sort of education does someone need? Is a 2 year college program in isurance enough to get you started?

Posted: 26 Sep 2010 03:53 Post Subject: Insurance

What are the average quotas required by insurance companies of their agents in the first year?

Posted: 28 Sep 2010 03:56 Post Subject:

What are the average quotas required by insurance companies of their agents in the first year?



Impossible to answer. Each company is different. Many have no quotas, because they pay what you're worth. No business, no commissions. Simple.

If a Series 7 securities license is part of the equation for a newly licensed agent, then the answer is definitely ZERO! Quotas can cause agents/Registered Representatives to do things they should not be doing. For those with a Series 6, there can be a requirement to do one new trade every three months, but again, that is strictly company-dependent.

Posted: 01 Oct 2010 03:03 Post Subject:

Why would there be a difference between 6 and 7 and a quota? 7 does not change the Representative from having a suitability requirement to a fiduciary requirement. That would require Investment Advisor (Representative) status (65 or 66)

Posted: 09 Nov 2010 06:09 Post Subject: state farm agents

Do all State Farm agents ignore their customers e-mails and phone calls? Mine gets money from my premiums but he can't be bothered with my problems, which are problems brought on by my being cheated by my agent. He just had a big fine office building built, guess that is all the cares about, sorry just wanted to vent!

Posted: 01 Dec 2010 05:14 Post Subject: insurance agent

where would i start if i want to become a licensed insurance agent. Are there any classes that i can find out in my area. Where would i start?

Posted: 01 Dec 2010 05:18 Post Subject: insurance agent

How can i become a insurance agent. what school should i attend to get licensed?

Posted: 19 Dec 2010 12:59 Post Subject: Want

Hi. I want at lease 10 members agents to work a famous impurence company

Posted: 19 Dec 2010 12:59 Post Subject: Want

Hi. I want at lease 10 members agents to work a famous impurence company

Posted: 22 Dec 2010 08:52 Post Subject: insurance

what if you work for an agent, but it's not your office. You do all the quotes, write the business, etc. You are licensed in both P & C and life. You pretty much are the office manager as well. How much should you make in California to do that?

Posted: 23 Dec 2010 06:56 Post Subject:

How much should you make in California to do that?


Are you being employed as an agent or a solicitor? How much prior experience do you have? Are you working outside the office to develop a book of business?

The answers to these questions will help.

Posted: 18 Jan 2011 12:28 Post Subject:

Hi,
Agents do great job. Providing insurance is a good job. Agents having good income but any one can explain me how much they get?



____________________
Longstay Travel Insurance

Posted: 19 Jan 2011 08:13 Post Subject: what would you say if a high school student came to you and

I'm a high school student and becoming. Health insurance agent has come across my my and I decided i would like to persue with it what is your advice on how I can achieve this goal

Posted: 20 Jan 2011 06:07 Post Subject:

stay in school, while working towards your degree, go work for a local agent part time and gain some good experience; best way to see if insurance is for you.

Posted: 01 Feb 2011 08:52 Post Subject:

There have been plenty of great comments. To recap on what most have said, making a quality income in insurance is completely dependant on one's ability to work and see as many people as they can. Insurance is a game of numbers. Those who have made it in the business have done so because they networked. Starting out in insurance is very difficult and I am a big believer that you have to give it at least a year or two before you truly know whether or not it is for you. I have heard people tell me that P&C agents make more money, and others say Life & Health agent's make more money. You will make what you believe you are worth if you take the steps to make sure that's true. I have a friend who started as a captive agent with me in the same company five years ago. We both made around $34-$40k our first year. We each split and started our own insurance businesses and he know makes around $300k a year, while I made 1.9 million in 2010. I'm not a better agent than he is, I just believe in what I do more. Do what you need to do and take the necessary steps to obtain names and you will do fine.

Posted: 16 Mar 2011 08:06 Post Subject: HELLO

hello i am going for a second interview for aflac insurance and they want me to take alot of classes to get my liscense but i havent yet found out the pay so before i get into everything i wanted to know the average pay for a beginner like me and will i get paid for training?

Posted: 02 Apr 2011 12:41 Post Subject: Broker

what are the steps to become a broker? I hear often how you are an agent and you can be a broker if you want how? is there a class or step to perform to become a broker

Posted: 04 Apr 2011 06:52 Post Subject:

Well if you are talking specifically about insurance agents, then they definitely receive large sums of money. It is so because they are employed by the insurance company and so get paid by them only not like loss assessors who solely work for the insured and get a small percentage of the payment paid by insurance company to the insured as compensation of their claim.

Posted: 07 Apr 2011 05:51 Post Subject: salary

most of you people talking about what you make are full of it... being an insurance agent is a tough job and it takes a long time to get up to the 100k a year range. probably at least 5 years

Posted: 07 Apr 2011 08:33 Post Subject:

being an insurance agent is a tough job and it takes a long time to get up to the 100k a year range.


That is quite true. Some of them won't even be able to achieve it in 5 years unless they perform consistently.

Posted: 08 Apr 2011 08:37 Post Subject:

Hi all,
I want to tell you that insurance agents also, make lots of money. It depends on what type of client they are having. Actually they get a good amount for a particular insurance which they call as commission.

Posted: 21 Apr 2011 03:11 Post Subject: interested in commission bassis business

interested in commission bassis business

Posted: 27 Apr 2011 07:06 Post Subject: Starting out

I want to take on being an independent agent. I currently am a federal worker and due to the tight budget my job life looks to have about 2 years left. Is it possible to switch and start under an agent till i become independentand gain experience, and will it be a big pay cut doing so from 65k a year? Also, is it possible to u think to work part time to gain experience doing my current job then go full independent?

Posted: 01 May 2011 06:43 Post Subject:

I think agents can make much more as they can.

Posted: 24 May 2011 06:11 Post Subject: which insurance has more potential

Hi:
I am contemplating getting into the senior market or malpractice insurance as a friend recommended there's more money to be made and quicker in malpractice insurance?
Your thoughts/expertise.
Thank you

Posted: 30 Jun 2011 05:31 Post Subject:

if the captive agents are unable to reach the target will they loose their job?how to collect people for accepting the policies?

Posted: 22 Jul 2011 10:07 Post Subject: inof

Hi Si, I am working on my insurance class/license, I like to know if I want to sell multiple companies or any companies insurance can I do that or there is any restriction, I would appreciate if you can help me understand this because I am stuck with one, there is know way we can offer clients competitive rates etc.. THANKS

Posted: 14 Sep 2011 09:08 Post Subject: What happens when the agent dies?

Does the surviving spouse continue to receive the commissions?

Posted: 20 Dec 2011 03:37 Post Subject: Texas

I'm wanting to sell in Texas. I'm thinking about selling Health and Life & Auto. Can I just open my own office and sell these type of policies with out being under someones thumb? If so what type of license would I need to be independent in Texas? Also how do you get with insurance companies to sell their products?

Posted: 27 Dec 2011 09:08 Post Subject: insureance

hey my name is beau how much does insureance agent are broker make yearly

Posted: 16 Feb 2012 11:35 Post Subject: How manys years of schooling is required?

How many years of college is required to be an insurance agent? What classes are required?

Posted: 29 Feb 2012 12:04 Post Subject: oHhrQClvcjXw

A lot. More today than a year ago.Because of Obamacare, no cnpmaoy in America offers stand alone children's health insurance.Why? Obamacare dictates that it is guaranteed issue, without rate ups, regardless of health. Therefore, there is no reason to purchase it until there is a claim needing to be paid.That's not health insurance. That's a confiscatory tax on health insurance companies. Fortunately, they aren't slaves yet, so they exercised the F U clause in the contract with the purple bellies from Washington and just refused to do business where they are guaranteed to lose money.How do you fix the problem of un- and under-insured? By making health insurance affordable.How do you make it affordable? By removing ALL government mandates, loser pays tort reform, encouraging competition between providers (enforce existing anti-trust laws), eliminate the AMA monopoly on billing codes, and eliminate the connection between employment and health insurance.Do these things and we'll see health insurance cost less than auto insurance. More people will be covered, more people will be healthy.

Posted: 16 Apr 2012 12:49 Post Subject: THANK YOU

That is what i needed to read. :)

Posted: 23 Apr 2012 04:26 Post Subject: Nike Set free Dame

Thank you for sharing
I really like

Posted: 27 Apr 2012 09:01 Post Subject: Is this Insurance Producer Offer Decent?

I have extensive B2B sales experience, but have been offered a position for an insurance company that is it's own brokerage and represents about 10 different lines. They made me an offer of a base of $55,000 for the first year and will pay for the training and my licensing. This company focuses on commercial property and casualty for businesses that pay a minimum premium of $50,000 per year. The commission structure they are offering is 40% for new contracts and 25% for renewals. The base salary is reduced by 1/3, the following year (in the thought that the commission will make up for it) and another 1/3 in year 3 so that it is fully commission based. My question is, does this seem like a good opportunity to make a very good income with a lot of hard work and tenacity? I will be completely new to the industry and appreciate any and all guidance. Thanks so much.

Posted: 17 May 2012 09:11 Post Subject: Exquisite

Have you ever considered writing an e-book or guest authoring on other blogs? I have a blog based on the same ideas you discuss and would really like to have you share some stories/information. I know my viewers would appreciate your work. If you are even remotely interested, feel free to shoot me an e-mail.

Posted: 24 May 2012 07:32 Post Subject: 6537582081

With havin so much content and articles do you ever run into any issues of plagorism or copyright violation? My blog has a lot of unique content I've either written myself or outsourced but it appears a lot of it is popping it up all over the web without my permission. Do you know any solutions to help prevent content from being stolen? I'd really appreciate it.

Posted: 25 May 2012 10:02 Post Subject: 5580112977

Hi are using Wordpress for your blog platform? I'm new to the blog world but I'm trying to get started and create my own. Do you require any coding expertise to make your own blog? Any help would be really appreciated!

Posted: 25 May 2012 06:44 Post Subject:

Can we start from moonlighting as an insurance agent? Have a full time job, but wanted to explore other opportunities. How can we start?

Posted: 26 May 2012 03:25 Post Subject: 7784688406

Hi there! Do you know if they make any plugins to protect against hackers? I'm kinda paranoid about losing everything I've worked hard on. Any suggestions?

Posted: 21 Feb 2013 03:25 Post Subject: The article above

The person that wrote the article above has zero idea of how the insurance business works. It's unfortunate when someone scribbles out a bunch of nonsense on a topic and then publishes it to the internet trying to pass as an expert. First she says that agents only receive commission for the first year of a home or auto policy and then she says they can receive 2%-5%. Wrong and wrong. She goes on to state the commissions can be as low as 8% (unlikely unless you're buying a workers comp policy. Most nonstandard commission is at least 10%) and as high as 15% (Preferred home policies are usually just under 20% commission). Many companies will offer trips for production (the trip will cost a very small percentage of the total written premium) and yearly bonuses (which are hard to qualify for and are based on your loss ration).

99% of what is written in Sil's article makes no sense and please do not use it as reference.

Posted: 08 Mar 2013 11:28 Post Subject:

You see (and hear) the agent salary question pop up at lot. The bottom line is that is just like most small business and sales models. Meager beginnings with lots of upside.

There is a high churn rate with new agents just because not everyone is cut out to be in sales. With a good work ethic and honing your sales and marketing chops you can build a strong book of business and make a very good living.

Posted: 31 Mar 2013 06:10 Post Subject: What to do

Insurance company telling people I still work for them. That's a lie, they were taking money in my name police got my money back, my account was over draft.

Posted: 04 Jan 2014 09:01 Post Subject:

They do make lot of money earlier but nowdays there is so much restriction as company does not have anything hidden from the client as there is lot of competition these days so agent are now earning much less than they earned a decade ago

Posted: 07 Jan 2014 02:13 Post Subject:

I cannot tell about others but auto insurance agents make good given the fact that having a policy is mandatory for car owners. So may or may not someone get a life insurance. But someone who has a car, would definitely need an insurance...

Add new comment

Restricted HTML

  • Allowed HTML tags: <a href hreflang> <em> <strong> <cite> <blockquote cite> <code> <ul type> <ol start type> <li> <dl> <dt> <dd> <h2 id> <h3 id> <h4 id> <h5 id> <h6 id>
  • Lines and paragraphs break automatically.
  • Web page addresses and email addresses turn into links automatically.