Job Responsibilities
A "producer" in the insurance business works under an agent
developing new business and writing new policies. Obviously, the
most important skill to have in this position is PERSUASIVENESS.
Most people think of insurance brokers as salesmen. I don't
consider myself a salesmen - I consider myself a hunter. People
who sell successfully know that everybody hates being sold, but
they all LOVE to buy - nothing is sold, everything is bought. My
job consists of hunting down buyers and connecting them to
sellers (insurance carriers). That's it.
Of course, every producer must possess analytical skills and be
disciplined enough to kick-in the required due diligence when
necessary. Once you find that buyer, you must be capable of
placing her with the best carrier that fits her specific needs.
This requires a deep understanding of the various insurance
markets - there are indeed many.
Ultimately, this position requires patience, aggressiveness, and
tenacity.
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Job Requirements
For the most part, those who desire to enter this business need
not present employers with fancy degrees. A high school diploma -
or even a GED - should be sufficient. Any half-way intelligent
agent should be able to earn six figures within three years of
employment. Unlike the real esate business, not every TOM, DICK,
and JERRY wants to be an insurance agent. The business simply
isn't sexy enough.
I will be in this business for 18 months, tops. I personally
feel that although insurance is extremely lucrative, it is
simply too boring. However, working under an insurance agent
gives me the opportunity to acquire a series 6 license while
still in college. A series 6 qualifies the holder to sell mutual
funds and variable annuities. After I graduate, I can show
wirehouse investment firms that I already have experience with
financial planning. Plus, I come bundled with a loyal book of
clients. That leverage will be HUGE for me when negotiating
salary, location, position, etc...
The secret to this business is to focus on commercial lines -
NOT PERSONAL LINES. Auto and homeowner's insurance are examples
of personal lines. Who wants to sell someone car insurance?
That's corny. Focus instead on writing worker's compensation,
business liability, and landlord's policies. These contracts are
usually larger and more fun to negotiate.
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Uppers
The best part of my job is the independence. My agent does not look over my
shoulder and bother me with trivial tasks. I am reponsible for developing new
business and creating new relationships. However I set out to do that is up to
me. Not many people can say that they work with true independence.
However, if I don't produce, then I expect to be kicked to the curb.
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Downers
I agreed that every Wednesday night, I would stay late and cold-
call houses to develop new auto leads. This is absolutely
TERRIBLE. However, my agent lets me control my schedule, and I
feel that cold-calling houses for an hour once a week is a fair
trade-off.
Also, a lot of people, including your best friends, WILL tease
you about your current foray into the insurance business. They
will cite Willy Loman from Death of a Salesman and proceed to
make outrageous comparisons. Pay them no mind. Remember, the
second richest man in the world is in the insurance business -
WARREN BUFFET. Your friends don't know s--t.
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Lifestyle
In the beginning, you will be on the phone a lot, but that's only because you're
young and don't know many business owners. After 1-3 months, you will have
developed a solid book of clients and reliable sources for referrals.
Many believe that insurance advisors spend many hours in the office. This is
only true for advisors who like to spend time in the office. You can choose to
work in the field, prospecting for clients or wining-and-dining your current book
for more business and referrals.
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Compensation
After you pass your Property & Casualty licensing exam, your
agent will most likely pay you a base salary plus a small
percentage of the policies your write-up. When you have
developed enough business, your agent will decrease your base
and increase your commission until you earn strictly commission.
The commission on a policy is 15% for writing business under a
carrier you work for (ie. Farmers Group) and 7.5% - 15% for
writing business for carriers you do not directly work for. For
example, if I write up a $13,000 Farmers business liability
policy for Joe's of Westlake, our agency gets $1950
(13,000*0.15). If I just passed my license exam yesterday, I'll
probably see 30% of that commission ($585). If I passed my exam
6 months ago, I'll probably see 70% of that commission ($1365).
That $13,000 premium is not uncommon for a small business, so
that accompanying commission is not hard to earn by any means.
If I write up that same policy under AIG and I work for Farmers
Group, my commission will be lower that 15%. Each insurance
carrier determines the commission for outside producer. Again,
that commission usually falls between 7.5% and 15%.
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Advice to Jobseekers
You better have rhinoceros skin if you want to succeed in this
business. If you can manage rejection, sky's the limit kid.
Do you live in the Bay Area? Do you want to build an empire?
Call 650-343-3190
Ask for Luis
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