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:
- Captive agents - Those who represent a particular insurance company.
- Independent agents - Those who sell insurance products from various insurance companies.
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.
TopHow 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.
TopWhat 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 |
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.
TopIs 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.
TopReading discussions & reading
- Qualifications you need to be an insurance agent
- How to become an insurance agent
- Can you make millions as an agent?
- What are the commission opportunities of an agent?
- What makes insurance agents click in the industry?
Posted: Mon Jun 21, 2010 09:37 pm Post Subject:
They make a million!
Posted: Wed Jun 23, 2010 03:16 pm Post Subject: start up
how much does it take financially to start up a basic auto insurance company
Posted: Fri Jun 25, 2010 09:49 am 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: Sat Jul 31, 2010 06:46 am Post Subject: ques. abt commision
what was the earlier commision rate which an insurance agent gets before the change in irda guidelines?
Posted: Sat Jul 31, 2010 06:48 am Post Subject: thanks
thanks
Posted: Thu Sep 23, 2010 09:23 pm Post Subject:
what sort of education does someone need? Is a 2 year college program in isurance enough to get you started?
Posted: Sun Sep 26, 2010 03:53 pm Post Subject: Insurance
What are the average quotas required by insurance companies of their agents in the first year?
Posted: Tue Sep 28, 2010 03:56 am 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: Fri Oct 01, 2010 03:03 am 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: Tue Nov 09, 2010 06:09 pm 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!
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