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Insurance Sales Agents

Summary

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Quick Facts: Insurance Sales Agents
2023 Median Pay $59,080 per year
$28.40 per hour
Typical Entry-Level Education High school diploma or equivalent
Work Experience in a Related Occupation None
On-the-job Training Moderate-term on-the-job training
Number of Jobs, 2023 547,600
Job Outlook, 2023-33 6% (Faster than average)
Employment Change, 2023-33 33,400

What Insurance Sales Agents Do

Insurance sales agents contact potential customers and sell one or more types of insurance.

Work Environment

Most insurance sales agents work in office settings, although they may spend time traveling to meet with clients.

How to Become an Insurance Sales Agent

Although employers typically require that agents have a high school diploma, they may prefer to hire agents who have a bachelor’s degree. Agents must be licensed in the states where they work.

Pay

The median annual wage for insurance sales agents was $59,080 in May 2023.

Job Outlook

Employment of insurance sales agents is projected to grow 6 percent from 2023 to 2033, faster than the average for all occupations.

About 47,100 openings for insurance sales agents are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

State & Area Data

Explore resources for employment and wages by state and area for insurance sales agents.

Similar Occupations

Compare the job duties, education, job growth, and pay of insurance sales agents with similar occupations.

More Information, Including Links to O*NET

Learn more about insurance sales agents by visiting additional resources, including O*NET, a source on key characteristics of workers and occupations.

What Insurance Sales Agents Do About this section

Insurance sales agents
Insurance sales agents commonly sell one or more types of insurance, such as property and casualty, life, health, and long-term care.

Insurance sales agents contact potential customers and sell one or more types of insurance. These agents explain various insurance policies and help clients choose the plans that suit them.

Duties

Insurance sales agents typically do the following:

  • Contact potential clients to expand their own customer base
  • Interview prospective clients to get information about their financial situation and discuss existing coverage
  • Explain the features of various insurance policies
  • Analyze clients’ current policies and suggest additions or other changes
  • Customize insurance programs to suit individual clients
  • Handle policy sales and renewals
  • Assist clients with the insurance claims process
  • Maintain client records

Insurance sales agents commonly sell one or more types of insurance, such as property and casualty, life, health, and long-term care.

Property and casualty insurance agents sell policies that protect people and businesses from financial loss resulting from automobile accidents or from fire, theft, and other events that damage property. For businesses, property and casualty insurance also covers claims related to workers’ compensation, product liability, and medical malpractice.

Life insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies. Life insurance agents also sell annuities, which require the policyholder to make a single deposit or a series of payments in exchange for regular disbursements over time.

Health and long-term care insurance agents sell policies that cover some or all of the costs of medical care and of assisted-living services for older adults. They also may sell insurance for dental care and for short- and long-term disability.

Agents may specialize in selling any one of these products or function as generalists providing multiple products.

In addition to offering insurance, these agents may become licensed to sell mutual funds, variable annuities, and other securities. This practice is most common with life insurance agents who already sell annuities, but many property and casualty agents also sell financial products.

Many agents market their services to create or expand their own client base. For example, they may make sales calls to people who are not current clients, often through referrals from current clients.

Insurance agents may work for either a single company or several companies.

Captive agents are insurance sales agents who work exclusively for one company. They sell policies provided only by the company that employs them.

Independent insurance agents may sell the policies of several companies to match their clients' needs with the company that offers the best rate and coverage.

Insurance brokers work for insurance brokerage firms. They represent their clients, rather than insurers, and may offer advice about competing companies' rates, coverage, and reputation. Like agents, brokers may be either captive or independent; however, because independent brokers are not associated with insurance companies, they must involve an insurer or insurance agent to complete a sale.

Work Environment About this section

Insurance sales agents
Most insurance sales agents work in offices, although some may spend much of their time traveling to meet with clients.

Insurance sales agents held about 547,600 jobs in 2023. The largest employers of insurance sales agents were as follows:

Insurance agencies and brokerages 62%
Self-employed workers 11
Direct insurance (except life, health, and medical) carriers 8
Direct health and medical insurance carriers 5

Most insurance sales agents work in office settings, although they may spend time traveling to meet with clients.

Work Schedules

Most insurance sales agents work full time.

How to Become an Insurance Sales Agent About this section

Insurance sales agents
Agents must be licensed in the states where they plan to work.

Insurance sales agents typically need a high school diploma to enter the occupation. However, employers may prefer to hire candidates who have a bachelor’s degree. Agents must be licensed in the states where they work.

Education

A high school diploma is typically required for insurance sales agents. However, some employers prefer to hire candidates who have a bachelor’s degree in a field such as business.

Training

Insurance sales agents learn many of their duties on the job, such as by shadowing an experienced agent. New agents learn about insurance products, the sales process, and how to interact with clients.

Employers often expect agents to stay abreast of changes in tax laws, government benefits programs, and other state and federal regulations that may affect clients’ insurance needs and the way in which agents conduct business. Agents may take continuing education to meet employer expectations.

Licenses, Certifications, and Registrations

Insurance sales agents must have a license in the states where they work. Separate licenses are required for agents to sell life and health insurance and property and casualty insurance. In most states, licenses are issued only to applicants who complete specified courses and who pass state exams covering insurance fundamentals and state insurance laws. Most state licensing authorities also require agents to take continuing education courses focusing on topics such as insurance laws, consumer protection, ethics, and the technical details of various insurance policies.

Some insurance sales agents also sell securities and other financial products. To do so, they must become licensed by the Financial Industry Regulatory Authority (FINRA). FINRA's Series 6 exam is for agents who want to sell financial products, such as municipal fund securities, mutual funds, and variable annuities. Its Series 7 exam is the main FINRA series license, which qualifies agents as general securities sales representatives.

A number of organizations offer certifications that show an agent’s expertise in insurance specialties. These certifications are not required for employment, but they may give job candidates an advantage over other applicants. For details on specific designations, contact The Institutes and The American College of Financial Services.

Important Qualities

Analytical skills. Insurance sales agents must evaluate the needs of each client to determine the appropriate insurance policy.

Communication skills. Insurance sales agents must listen to clients and be able to clearly explain suitable policies.

Initiative. Insurance sales agents need to actively seek out new clients in order to increase business.

Interpersonal skills. Insurance sales agents must be able to establish trust in networking for prospective clients and in interactions with existing clients, including to handle claims.

Self-confidence. Insurance sales agents should be confident when contacting prospective clients. They must be persuasive and able to maintain composure if rejected.

Pay About this section

Insurance Sales Agents

Median annual wages, May 2023

Sales representatives, services

$63,150

Insurance sales agents

$59,080

Total, all occupations

$48,060

 

The median annual wage for insurance sales agents was $59,080 in May 2023. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $34,940, and the highest 10 percent earned more than $134,420.

In May 2023, the median annual wages for insurance sales agents in the top industries in which they worked were as follows:

Direct health and medical insurance carriers $71,540
Direct insurance (except life, health, and medical) carriers 58,650
Insurance agencies and brokerages 58,150

Wage data are from nonfarm establishments. The data exclude self-employed workers and owners and partners in unincorporated businesses. Tips, sales commissions, and bonuses for meeting production targets are included in wages; premium pay, such as overtime and shift differentials, is not.

Independent agents may be paid by commission only. Sales workers who are employees of an agency or an insurance carrier may be paid in one of three ways: salary only, salary plus commission, or salary plus bonus.

In general, commissions are the most common form of compensation, especially for experienced agents. The amount of the commission depends on the type and amount of insurance sold and on whether the transaction is a new policy or a renewal. When agents meet their sales goals or when an agency meets its profit goals, agents usually get bonuses. Some agents involved with financial planning receive a fee for their services rather than a commission.

Most insurance sales agents work full time.

Job Outlook About this section

Insurance Sales Agents

Percent change in employment, projected 2023-33

Insurance sales agents

6%

Total, all occupations

4%

Sales representatives, services

4%

 

Employment of insurance sales agents is projected to grow 6 percent from 2023 to 2033, faster than the average for all occupations.

About 47,100 openings for insurance sales agents are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.

Employment

Because the profitability of insurance companies depends on a steady stream of new customers, the demand for insurance sales agents is expected to continue. Employment growth will likely be strongest for independent sales agents as insurance companies rely more on brokerages and less on captive agents in an effort to control costs.

Many clients do their own research and purchase insurance online, which reduces demand for an insurance sales agent’s services. However, agents will still be needed to help clients understand their options and choose a policy that is right for them. Many customers lack the time or expertise to study the different types of insurance to decide what they need and so they will continue to rely on advice from insurance sales agents.

Employment projections data for insurance sales agents, 2023-33
Occupational Title SOC Code Employment, 2023 Projected Employment, 2033 Change, 2023-33 Employment by Industry
Percent Numeric

SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program

Insurance sales agents

41-3021 547,600 581,000 6 33,400 Get data

State & Area Data About this section

Occupational Employment and Wage Statistics (OEWS)

The Occupational Employment and Wage Statistics (OEWS) program produces employment and wage estimates annually for over 800 occupations. These estimates are available for the nation as a whole, for individual states, and for metropolitan and nonmetropolitan areas. The link(s) below go to OEWS data maps for employment and wages by state and area.

Projections Central

Occupational employment projections are developed for all states by Labor Market Information (LMI) or individual state Employment Projections offices. All state projections data are available at www.projectionscentral.org. Information on this site allows projected employment growth for an occupation to be compared among states or to be compared within one state. In addition, states may produce projections for areas; there are links to each state’s websites where these data may be retrieved.

CareerOneStop

CareerOneStop includes hundreds of occupational profiles with data available by state and metro area. There are links in the left-hand side menu to compare occupational employment by state and occupational wages by local area or metro area. There is also a salary info tool to search for wages by zip code.

Similar Occupations About this section

This table shows a list of occupations with job duties that are similar to those of insurance sales agents.

Occupation Job Duties ENTRY-LEVEL EDUCATION Help on Entry-Level Education 2023 MEDIAN PAY Help on Median Pay
Wholesale and manufacturing sales representatives Wholesale and Manufacturing Sales Representatives

Wholesale and manufacturing sales representatives sell goods for wholesalers or manufacturers to businesses, government agencies, and other organizations.

See How to Become One $73,080
Advertising sales agents Advertising Sales Agents

Advertising sales agents sell promotional space to businesses and individuals.

High school diploma or equivalent $61,270
Real estate brokers and sales agents Real Estate Brokers and Sales Agents

Real estate brokers and sales agents help clients buy, sell, and rent properties.

High school diploma or equivalent $56,620
Securities, commodities, and financial services sales agents Securities, Commodities, and Financial Services Sales Agents

Securities, commodities, and financial services sales agents connect buyers and sellers in financial markets.

Bachelor's degree $76,900
Sales managers Sales Managers

Sales managers plan, direct, or coordinate the delivery of a product or service to the customer.

Bachelor's degree $135,160
Insurance underwriters Insurance Underwriters

Insurance underwriters evaluate insurance applications and decide whether to approve them.

Bachelor's degree $77,860
Personal financial advisors Personal Financial Advisors

Personal financial advisors provide advice to help individuals manage their money and plan for their financial future.

Bachelor's degree $99,580

Contacts for More Information About this section

For more information about insurance sales agents, visit

National Association of Professional Insurance Agents

Insurance Information Institute

For more information about insurance sales agents in the healthcare industry, visit

National Association of Health Underwriters

For more information about certifications, visit

The Institutes

The American College of Financial Services

For more information about securities licensure, visit

Financial Industry Regulatory Authority (FINRA)

Information about insurance sales agent licensure is available from state insurance department websites.

O*NET

Insurance Sales Agents

Suggested citation:

Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, Insurance Sales Agents,
at https://www.bls.gov/ooh/sales/insurance-sales-agents.htm (visited November 26, 2024).

Last Modified Date: Thursday, August 29, 2024

What They Do

The What They Do tab describes the typical duties and responsibilities of workers in the occupation, including what tools and equipment they use and how closely they are supervised. This tab also covers different types of occupational specialties.

Work Environment

The Work Environment tab includes the number of jobs held in the occupation and describes the workplace, the level of physical activity expected, and typical hours worked. It may also discuss the major industries that employed the occupation. This tab may also describe opportunities for part-time work, the amount and type of travel required, any safety equipment that is used, and the risk of injury that workers may face.

How to Become One

The How to Become One tab describes how to prepare for a job in the occupation. This tab can include information on education, training, work experience, licensing and certification, and important qualities that are required or helpful for entering or working in the occupation.

Pay

The Pay tab describes typical earnings and how workers in the occupation are compensated—annual salaries, hourly wages, commissions, tips, or bonuses. Within every occupation, earnings vary by experience, responsibility, performance, tenure, and geographic area. For most profiles, this tab has a table with wages in the major industries employing the occupation. It does not include pay for self-employed workers, agriculture workers, or workers in private households because these data are not collected by the Occupational Employment and Wage Statistics (OEWS) survey, the source of BLS wage data in the OOH.

State & Area Data

The State and Area Data tab provides links to state and area occupational data from the Occupational Employment and Wage Statistics (OEWS) program, state projections data from Projections Central, and occupational information from the Department of Labor's CareerOneStop.

Job Outlook

The Job Outlook tab describes the factors that affect employment growth or decline in the occupation, and in some instances, describes the relationship between the number of job seekers and the number of job openings.

Similar Occupations

The Similar Occupations tab describes occupations that share similar duties, skills, interests, education, or training with the occupation covered in the profile.

Contacts for More Information

The More Information tab provides the Internet addresses of associations, government agencies, unions, and other organizations that can provide additional information on the occupation. This tab also includes links to relevant occupational information from the Occupational Information Network (O*NET).

2023 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2023, the median annual wage for all workers was $48,060.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

Work experience in a related occupation

Work experience that is commonly considered necessary by employers, or is a commonly accepted substitute for more formal types of training or education.

Number of Jobs, 2023

The employment, or size, of this occupation in 2023, which is the base year of the 2023-33 employment projections.

Job Outlook, 2023-33

The projected percent change in employment from 2023 to 2033. The average growth rate for all occupations is 4 percent.

Employment Change, 2023-33

The projected numeric change in employment from 2023 to 2033.

Entry-level Education

Typical level of education that most workers need to enter this occupation.

On-the-job Training

Additional training needed (postemployment) to attain competency in the skills needed in this occupation.

Employment Change, projected 2023-33

The projected numeric change in employment from 2023 to 2033.

Growth Rate (Projected)

The percent change of employment for each occupation from 2023 to 2033.

Projected Number of New Jobs

The projected numeric change in employment from 2023 to 2033.

Projected Growth Rate

The projected percent change in employment from 2023 to 2033.

2023 Median Pay

The wage at which half of the workers in the occupation earned more than that amount and half earned less. Median wage data are from the BLS Occupational Employment and Wage Statistics survey. In May 2023, the median annual wage for all workers was $48,060.