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: Wed Dec 01, 2010 05:14 pm 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: Wed Dec 01, 2010 05:18 pm Post Subject: insurance agent
How can i become a insurance agent. what school should i attend to get licensed?
Posted: Sun Dec 19, 2010 12:59 pm Post Subject: Want
Hi. I want at lease 10 members agents to work a famous impurence company
Posted: Sun Dec 19, 2010 12:59 pm Post Subject: Want
Hi. I want at lease 10 members agents to work a famous impurence company
Posted: Wed Dec 22, 2010 08:52 pm 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: Thu Dec 23, 2010 06:56 am 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: Tue Jan 18, 2011 12:28 pm 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: Wed Jan 19, 2011 08:13 pm 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: Thu Jan 20, 2011 06:07 am 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: Tue Feb 01, 2011 08:52 pm 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.
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