How To Become An Insurance Broker - PeopleKeep

There’s no doubt that the insurance industry is tricky to navigate. That’s why insurance brokers are crucial in helping consumers choose the plans that are right for them.

Brokers offer expert advice on insurance policies, help their clients manage common risks, compare rates and prices, and provide peace of mind, making them valuable assets in the insurance field. The U.S. Bureau of Labor Statistics projects the employment of insurance brokers to grow 4% between 2024 and 20341. Additionally, a Grand View Research report estimates that the global brokers and agents market will reach $524 billion by 20302.

If you’re interested in becoming an insurance broker, our blog post explains the role, including its responsibilities and qualifications, so you can get a jump start on a new career.

In this blog post, you’ll learn:

• What an insurance broker does, and how they can help individuals and businesses.
• The key responsibilities and qualifications required to become an insurance broker.
• The difference between insurance brokers and insurance agents.

What is an insurance broker?

An insurance broker is an intermediary between a consumer, either an individual or an employer, and an insurance company. As partners, brokers help consumers find and purchase the insurance policy that best suits them.

Brokers can specialize in one type of insurance, such as life or health insurance, but they often offer advice on several types of coverage. They can choose to work independently or within an insurance brokerage firm.

Brokers sell coverage, but they don’t work for insurance companies. Instead, they work directly for their client, so their client can receive the best advice when considering their options.

To keep things simple, think of an insurance broker as a go-between who can advocate for you. They aim to be the glue between individuals or business owners seeking coverage and the carriers that provide the product.

Brokers can work in many types of insurance, including:

• Auto insurance
• Life insurance
• Disability insurance
• Homeowner and commercial insurance
• Health insurance
• Traditionally, brokers working with employers specialize in fully-insured group health insurance or self-funded plans.
• Due to the rising popularity of the individual coverage health reimbursement arrangements (ICHRA), brokers must understand the individual market so they can help their clients shop for qualifying health insurance plans and compare prices.
• Accident insurance
• Commercial inventory and contents insurance
• Business loss of income and workers' compensation
• Property insurance
• Casualty insurance

Brokers start by identifying their clients’ personal and business needs as well as any risks. Then, they make informed recommendations about the insurance needed and how much to buy, and they provide the client with several quotes to compare.

Since brokers don’t represent insurance companies, they can’t complete sales or bind coverage on behalf of an insurer. Once the client decides, they hand over the account to an insurer or insurance agent to complete the transaction.

Contrary to popular belief, using a broker doesn’t cost the consumer anything extra. Brokers make money by earning commissions from insurance companies for selling a policy to their clients. Commissions typically range from 4% to 20% of the premium, on average, depending on their state’s regulations and industry3.

What are the responsibilities of an insurance broker?

An insurance broker has many roles and responsibilities, ranging from risk management to providing industry knowledge. Because an insurance broker can be independent or work within a firm, an individual broker's range of roles and responsibilities can vary.

Here are nine different roles and responsibilities of an insurance broker:

1. Act as a liaison between the insurance carrier and the client.
2. Compare, negotiate, and sell insurance policies.
3. Hold client meetings to help them manage risks and understand market conditions.
4. Advise and consult their clients to provide the best policies and annual premiums.
5. Handle administrative duties for their clients.
6. Schedule and attend meetings with their clients, the insurers, or both.
7. Keep accurate and detailed records.
8. Stay compliant in the insurance field by keeping their insurance broker license current, staying up to date on new developments, and sharpening their sales skills.
9. Comply with all legal and insurance licensing requirements in their jurisdiction.

What qualifications does an insurance broker need?

To pursue a career path as an insurance broker, it’s best to follow the steps below:

1. Earn a college degree in insurance, business, economics, or finance.
1. Although having a college degree isn’t a requirement, 64% of brokers have a Bachelor’s degree, which helps to develop a strong background and the necessary skills to excel in the role4.
2. Complete a background check and fingerprinting, and fulfill a specific number of training hours for pre-licensing courses.
3. Take the insurance exam and begin the license application process via the National Insurance Producer Registry5.
1. You must also pay licensing and application fees to become an active broker.
4. Obtain a separate type of license in each state you’ll be operating in (if you manage other brokers or agents in different states).
1. If you choose to sell multiple types of insurance, you may need to take various state licensing exams to get more than one license.
5. Renew your license regularly by completing the required continuing education courses to stay compliant.
1. Use the National Association of Insurance Commissioners (NAIC) website to manage licensing, verify agent credentials, and monitor your compliance6.

Why are insurance brokers important for consumers and employers?

Brokers have a deep knowledge of the insurance marketplace. They’re experts in the complexities of insurance policies, effectively analyze the many different companies available, and consider their clients’ needs carefully before recommending any insurance policy.

But those are only a few reasons that an insurance broker is essential. Below, we go into detail on a few more.

They help clients save on insurance rates and receive faster claim payouts

A broker works with several insurance companies to find the best deal for their client. They make carefully considered suggestions to serve their clients’ interests and ensure they have the right policy at a budget-friendly price.

Additionally, since an independent broker has relationships with several insurance partners, they can negotiate competitive rates and add any available discounts.

In the event of a claim, a broker will help their client through the claim process. They can answer questions and serve as an advocate to ensure the payout is fair and delivered to the client in a reasonable time frame.

They offer expert advice from an experienced industry professional

It’s an insurance broker’s job to provide their clients with personalized support so consumers can understand their coverage options. A broker has extensive industry knowledge and years of experience to draw from when consulting with a client, which comes in handy when navigating the tricky waters of insurance.

By providing expert advice, brokers help their clients obtain the best policy price and instill confidence and peace of mind. Shopping for and managing insurance coverage is usually less stressful and more comprehensive when an insurance broker helps clear the way.

They protect their clients from dishonest conduct

As mentioned earlier, all brokers must have an insurance license. Getting a license involves staying up to date in continued education, professional competence, ethical conduct, and insurance-related financial services. Having these skills helps clients know you’ll treat them fairly and represent their best interests.

It’s also essential that brokers remain impartial and inform clients about loopholes and other potential policy pitfalls. You’re an extension of your client’s business, so you should give them an honest opinion that they can trust.

What is the difference between an insurance agent and a broker?

Insurance agents and insurance brokers often get confused with one another. They have similarities, such as the need for a license to operate. While both work in the same industry, the agent/broker role differs.

An insurance company employs an insurance agent to sell its products to consumers for a commission. A successful agent helps consumers select the right insurance, but ultimately represents the insurance company in the transaction.

The following are the two types of insurance agents:

1. A captive agent represents a single insurance company
2. An independent insurance agent typically represents more than one insurer

If you’re unsure if you want to be an insurance sales agent or an independent broker, there are a few considerations to keep in mind.

An insurance agent and an insurance broker compare in the following ways:

Insurance agents	Insurance brokers
They represent the insurer.	They represent the client.
They can bind coverage.	They can’t bind coverage.
They receive a contract from the insurer outlining the products they can sell, such as life insurance or annuities only, and their commission rates for those products.	They’re under no contract. This means they can solicit price quotes from multiple insurers or explore alternative benefit options.

Conclusion

An insurance broker’s primary goal is to foster excellent client relationships. This includes recommending the best coverage at the best possible rate, answering questions, being an advocate, and putting their client’s interests first.

When considering becoming an insurance broker, it’s critical to fulfill education requirements, learn essential job duties, and follow all state licensing requirements before starting. By following the guidelines in this article, you’ll have a solid foundation to begin a rewarding career in the insurance industry.

This article was originally published on September 3, 2010. It was last updated on March 13, 2026.

References

1. BLS - Insurance sales agents
2. GVR Report cover Insurance Brokerage Market (2024 - 2030)
3. Average Insurance & Benefits Broker Commissions 2025
4. Insurance broker education requirements
5. National Insurance Producer Registry (NIPR)
6. The National Association of Insurance Commissioners (NAIC)