Insurance agents, also known as insurance brokers, help insurance companies generate new business. They contact potential customers via a variety of different methods, and sell them insurance products.
An agent will have good knowledge of the different types of insurance available, and help the customer decide on the best insurance to meet their needs. This involves introducing the products to the customer, explaining how they work, and feeding back the information to the insurance company.
Some insurance agents work for a single, large insurance company. But it’s normal practice for agents to work for several smaller companies, giving them a larger selection of products to offer.
Insurance Agent Salary
Using the statistics from the Bureau of Labor Statistics, the average insurance agent’s salary is $50,600. This is the median wage, calculated by taking the halfway point between the amount half the workers earn more than, and half earn less than.
Obviously this would vary a lot from State to State, but for the purpose of a median across the whole of the US, this works well. Insurance starting salary also varies across different geographic locations, depending on experience, qualifications and more.
The lowest 10% however, earns less than $27,500 a year, while the top 10% earns $125,610. However, the question asking, how much do insurance agents make? Is still not straightforward, because there are often commissions and bonuses depending on the volume of sales.
Commissions are the most common forms of financial compensation on top of a salary. This is an incentive in place to help persuade agents to sell the policies of particular insurance companies that pay well. The amount of commission paid will differ across different policies, packages, terms taken out, and more.
There are usually overall goals too that are awarded with a bonus. These serve as a big motivational incentive for agents to push harder to make a certain amount of sales. These factors usually allow agents to work their own preferred hours. Evenings, weekends, and other hours that people are usually not at work are best to arrange an appointment.
Top 5 Paying States
| Flag | State | Employment per 1000 Jobs | Hourly mean wage | Annual mean wage |
|---|---|---|---|---|
 | Rhode Island | 2.52 | $42.62 | $88,650 |
 | New York | 2.60 | $38.72 | $80,540 |
 | Minnesota | 2.19 | $38.42 | $79,920 |
 | Massachusetts | 2.05 | $37.87 | $78,780 |
 | Illinois | 3.16 | $35.51 | $73,860 |
Top Paying Industries
| Industry | Percent of industry employment | Hourly mean wage | Annual mean wage |
|---|---|---|---|
| Commodity Contracts Brokerage and Intermediation | 0.10 | $46.80 | $97,340 |
| Electronic Markets Brokers and Agents | 0.03 | $37.01 | $76,990 |
| Management of Enterprises and Companies | 0.11 | $33.76 | $70,220 |
| Tax Preparation, Accounting, Bookkeeping, Payroll Services | 0.02 | $32.64 | $67,890 |
| Office Administrative Services | 0.05 | $31.20 | $64,900 |
Insurance Agent Job Description
So, what do insurance agents do? Well, in summary they help insurance companies’ secure new business by selling their products and policies. Insurance agents are the face that that talks through the products to the customers in person.
Here are some of the duties that insurance agents typically carry out:
• Calling potential customers over the phone
• Arranging appointments to meet with customers and discuss their options
• Review customer’s current policies and advise any improvements
• Handle legal documents and paperwork regarding policies
• Maintain computer based records
There are a number of different types of insurance agents can sell. Including property, casualty, health, life, and care insurance.
Casualty and property insurance agents sell policies that cover and protect businesses and people from experiencing financial loss resulting from theft, fire, automobile accidents, extreme weather, and other events that may result in damage to property.
With businesses, this also covers any claims as a result of workers’ injuries or compensation, product liability claims, or medical malpractice claims. Life insurance agents sell products that pay out in the event of death, or as part of a retirement package.
Health, life, and care policies cover the costs of medical bills and carer fees for people in their older years. There are also dental care, long-term, and short-term disability policies that some agents will offer.
An insurance agent’s career will always stay similar, with the process of selling insurance having not changed much over the years. The types of insurance policies however are always changing. So an ongoing knowledge curve is necessary, learning about the latest policies and ways the customers can benefit.
Many agents will spend a lot of time marketing themselves and their services. Often specializing in a certain area of insurance, and within a geographic area they can cover comfortably. This can be done by door-to-door pitching, making phone calls, and relying on existing customers to recommend them.
The life of an insurance agent usually means a lot of time is spent on the road travelling from client to client. But they will also have an office as a base, used to catch up on paperwork, meet with clients, or have meetings with other colleagues like lawyers and accountants.
Insurance Agent Salary by State
| Flag | State | Employment per 1000 Jobs | Hourly mean wage | Annual mean wage |
|---|---|---|---|---|
 | Alabama | 3.285 | $26.78 | $55,700 |
 | Alaska | 1.756 | $27.65 | $57,510 |
 | Arizona | – | $27.77 | $57,760 |
 | Arkansas | 2.479 | $24.54 | $51,040 |
 | California | 2.406 | $34.38 | $71,510 |
 | Colorado | 3.7 | $26.44 | $54,990 |
 | Connecticut | 3.295 | $33.73 | $70,150 |
 | Delaware | 2.5 | $31.38 | $65,270 |
 | Florida | 3.538 | $32.39 | $67,360 |
 | Georgia | 2.994 | $31.37 | $65,260 |
 | Hawaii | 1.614 | $30.42 | $63,270 |
 | Idaho | 2.106 | $26.87 | $55,880 |
| Illinois | 3.157 | $35.51 | $73,860 |
 | Indiana | 2.507 | $29.12 | $60,560 |
 | Iowa | 3.835 | $26.44 | $55,000 |
 | Kansas | 2.445 | $35.06 | $72,910 |
 | Kentucky | 2.448 | $28.48 | $59,230 |
 | Louisiana | 3.356 | $24.11 | $50,160 |
 | Maine | 2.724 | $27.25 | $56,670 |
 | Maryland | 2.588 | $28.51 | $59,300 |
| Massachusetts | 2.053 | $37.87 | $78,780 |
 | Michigan | 3.108 | $26.79 | $55,720 |
| Minnesota | 2.186 | $38.42 | $79,920 |
 | Mississippi | 2.223 | $25.73 | $53,520 |
 | Missouri | 3.4 | $29.18 | $60,700 |
 | Montana | 3.421 | $23.64 | $49,180 |
 | Nebraska | 3.039 | $26.28 | $54,650 |
 | Nevada | 2.37 | $25.07 | $52,150 |
 | New Hampshire | 2.032 | $33.08 | $68,800 |
 | New Jersey | 2.441 | $35.01 | $72,810 |
 | New Mexico | 1.964 | $22.40 | $46,600 |
| New York | 2.604 | $38.72 | $80,540 |
 | North Carolina | 2.352 | $28.79 | $59,890 |
 | North Dakota | 2.869 | $26.81 | $55,760 |
 | Ohio | 2.647 | $30.03 | $62,460 |
 | Oklahoma | 2.696 | $27.54 | $57,290 |
 | Oregon | 2.427 | $30.11 | $62,620 |
 | Pennsylvania | 2.98 | $32.73 | $68,070 |
| Rhode Island | 2.522 | $42.62 | $88,650 |
 | South Carolina | 2.705 | $21.64 | $45,010 |
 | South Dakota | 4.845 | $28.39 | $59,050 |
 | Tennessee | – | $26.24 | $54,570 |
 | Texas | 2.805 | $26.89 | $55,930 |
 | Utah | 2.452 | $24.70 | $51,370 |
 | Vermont | 2.315 | $34.40 | $71,560 |
 | Virginia | 2.63 | $27.94 | $58,120 |
 | Washington | 2.807 | $26.34 | $54,780 |
 | West Virginia | 2.539 | $23.37 | $48,620 |
 | Wisconsin | 2.507 | $31.51 | $65,540 |
 | Wyoming | 1.616 | $22.15 | $46,080 |
Top paying metropolitan areas
| Area | Employment per 1000 jobs | Hourly mean wage | Annual mean wage |
|---|---|---|---|
| Lawrence / Methuen / Salem, MA / NH NECTA Division | – | $50.21 | $104,430 |
| New Bedford – MA | 1.44 | $48.98 | $101,880 |
| Fond du Lac – WI | 1.17 | $47.88 | $99,590 |
| Toledo – OH | 1.71 | $46.95 | $97,650 |
| Lake County / Kenosha County, IL / WI – Metropolitan Division | 1.96 | $46.07 | $95,820 |
Top paying non-metropolitan areas
| Area | Employment per 1000 jobs | Hourly mean wage | Annual mean wage |
|---|---|---|---|
| North Valley Region of California – nonmetropolitan area | 1.57 | $47.51 | $98,830 |
| Southeast Alabama – nonmetropolitan area | 1.92 | $45.66 | $94,980 |
| Southwestern New Hampshire – nonmetropolitan area | 2.87 | $42.24 | $87,870 |
| Western Colorado – nonmetropolitan area | 1.96 | $39.69 | $82,550 |
| Central New York – nonmetropolitan area | 1.12 | $37.43 | $77,850 |
Insurance Agent Job Outlook
The outlook is always positive for insurance agents. There is an expected growth of 10% forecast until 2026, which is around the average of all occupations. The insurance industry generally follows suit with the economy.
Because insurance companies rely heavily on agents bringing them new business in, the profession is always in demand. With the more successful agents rising to the top quicker and earning a lot more through commissions and bonuses.
With this in mind, independent insurance agents will be more in demand as insurance companies use them as a way to leverage their client base. With long and short-term care, and health insurance expected to be the most in demand policies due to the ever aging population.
