Sunday, March 4, 2012

Becoming an Insurance Agent

Overview of Insurance and Role of Agents
The concept of insurance has a great importance in Economics. Insurance provides financial security for the individual after the regular payment of the premiums. There are many kinds of insurance plans like health insurance, life insurance, home insurance and disability insurance. The insurance companies earn a considerable amount of money from the premiums, which is invested in some profitable ventures and businesses to maximize their gains. There are many big players in the insurance market, who have millions to invest, but it is not possible for them to reach out to the root level to find eligible customers for themselves. So, they appoint the insurance agents to do this job of finding customers for them. The role of insurance agents is to provide precise information about all the schemes and plans floated by the company and get maximum possible potential customers. More the amount sold policies, more will be the commission of the insurance agents. Given below, are the requirements and qualifications for becoming an insurance agent.

Qualifications and Pre-requisites to Become Insurance Agent
Many people are attracted to the profession of insurance agent, to earn a lot of money, but are totally confused about how to become an insurance agent. Ideally, an insurance agent should have a graduate degree in commerce and postgraduate degree in business administration. One should have a thorough knowledge of accounts, and some good work experience in a financial institution before becoming an insurance agent. College students can consider the idea of working part-time to gain some useful experience as this early exposure to the world of finance will help them learn the tricks of the trade fast, when they practice independently as insurance agents. You should learn portfolio management and the various latest computer software, available in the market, which are extensively used by the senior insurance agents to memorize the calculations and insurance accounts.

To become a successful insurance agent, one should have good communication and marketing skills. One should have the ability to convince people and prove how your suggestion could help them financially. A person with good knowledge of finance and economics could do wonders, as an insurance agent. An insurance agent should have an outgoing and dynamic personality and should be able to work hard for long hours till the clients are satisfied.


Importance of Certifications and Actual Work
Relevant certifications from the central state authority are essential for budding insurance agents. You need to pass in an exam conducted for insurance agents which has questions related to accounting and insurance laws. You can seek guidance from senior insurance agents before giving your exam, to get some valuable tips, which will definitely help you. As an insurance agent, you can either work as an employee or as an independent agent. You will need an office of your own if you plan to do the insurance business individually.

While becoming an insurance agent, you may have to deal with ups and downs in your insurance business as the business prospects are good while the economy is booming, and very difficult at the times of economic recession. Only the fittest will survive in this race, so it becomes imperative to acquire qualities like dedication, consistency and determination to achieve your dreams.