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 Oct 07, 2009 10:28 pm Post Subject:
HOW MUCH DOES A COSTUMER SEERVICE/MANAGER WITH 3 YEARS EXPERIENCE WITH ALLTATE MAKES A MOTH?
Posted: Thu Oct 08, 2009 05:39 am Post Subject:
If you're a customer service rep your salary is supposed to range between $21k-$37k. If you're an office manager it would range between $49k-$53k. The more experience you have higher would be your pay.
Posted: Sat Oct 24, 2009 02:40 am Post Subject: Property and Casualty Agents in Florida
I am considering getting this license. Will I be able to find a job now? Are these jobs commission only?
Posted: Sat Oct 24, 2009 08:35 am Post Subject:
Will I be able to find a job now?
You'd need to pursue a course and then sit for the tests. There are 2 kinds of agents- one who'd work under a carrier as a captive agent and the other who'd work independently.
Posted: Sat Dec 05, 2009 09:50 pm Post Subject: potiential
worked for insurance carrier, as a captive agent left the full time in end of 2005 making 105 K . I left the full time position due to personal family matters. I have recently accepted a position for a new Insurance Agency and have added the P & C with commercial licence to my exsisting general lines life and health. I have been an insurance agent since 2003. I worked hard and was greatly rewarded. My new employer has just opened the doors for business. He is wanting for me to get paid as a csr and work as a full time insuance agent for 25k a year. What license does a csr have to obtain and what are the duties. Confused in texas.
Posted: Wed Dec 16, 2009 04:30 pm Post Subject: how much is insurance
how much do we the people pay for other people 2 have insurance that can not afford the bill? i need 2 know 4 a school assimant
Posted: Sun Dec 27, 2009 01:17 am Post Subject: Leads
Do most people that just got their license get leads and from where? I am just starting out and need some help. I have a 215 health, life and annuity license in Florida.
Posted: Mon Jan 18, 2010 10:42 pm Post Subject: renewals
What should a p&c independent contractor make on renewals from their company? (75%, 50%,?)
Posted: Tue Jan 19, 2010 02:21 am Post Subject:
Usually the same as the FYC (first year commissions) or c. 5% less.
Posted: Sat Jan 30, 2010 10:32 pm Post Subject:
Anywhere from $500 to $500,000
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