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 Mar 16, 2011 08:06 pm 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: Sat Apr 02, 2011 12:41 pm 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: Mon Apr 04, 2011 06:52 am 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: Thu Apr 07, 2011 05:51 am 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: Thu Apr 07, 2011 08:33 am 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: Fri Apr 08, 2011 08:37 am 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: Thu Apr 21, 2011 03:11 pm Post Subject: interested in commission bassis business
interested in commission bassis business
Posted: Wed Apr 27, 2011 07:06 pm 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: Sun May 01, 2011 06:43 pm Post Subject:
I think agents can make much more as they can.
Posted: Tue May 24, 2011 06:11 pm 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
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