Insurance policies help businesses and families protect themselves against the financial burdens of unexpected events such as accidents, natural disasters, and illness. Insurance sales agents are experts in selling policies to customers on behalf of insurance companies. Agents help customers choose policies that best suit their needs and often explain the details of insurance policies. Though many agents have bachelor’s degrees, Insurance agents don’t need education beyond high school, and all should be licensed in the states where they are employed.
A long recession always wipes out jobs, but it creates them in some of the unpredictable places, like insurance. Life insurance is presently experiencing something of a revival, and for those looking for a career opportunity with the promise of great pay and good working conditions, it can be a rewarding option.
How Much Do Insurance Agents Make
Careers in the U.S:
The BLS reports that insurance agents made a mean of $67,780 a year as of May 2019. This annual income level comes down to average hourly earnings of $32.59. Based on the type of insurance they sell, they earn income in the form of commissions. As a result, veteran agents with multiple clients can earn much more than fresh agents. The top ten percent of insurance agents earned more than $125,500 a year, while the bottom 10 percent made less than $28,000. Fifty percent of workers earned between $36,520 and $77,460 a year(1).
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BLS data show that California led the nation in total employment of insurance agents as of May 2019, with 41,900 jobs. Agents there earned $75,360 a year on average. Agents in Massachusetts had the highest average income in the nation at $86,330 a year, followed by District of Columbia, where they averaged $83,710 a year. Other top-paying states were New York, Wisconsin, Minnesota. Agents earned more than $76,260 a year in all 3 states.
The majority of insurance agents work for brokerages that represent insurance companies. The BLS says that insurance agents working for agencies and brokerages earned $66,170 per annum on average as of May 2019. Agents working with insurance carriers made $74,430 on average, while those in the travel arrangement business made $55,790. Agents involved in Securities, Commodity Contracts, and Other Financial Investments and Related Activities averaged $70,980 a year. Those employed with insurance and employee benefit funds earned $80,130 on average.
Careers in Europe:
An early career Insurance Agent with 1-5 years of experience makes an average total remuneration (includes bonus, tips, and overtime pay) of £19,267. A mid-career Insurance Agent with 5-10 years of experience makes an average total compensation of £24,000. An experienced Insurance Agent with 10-20 years of experience makes an average total compensation of £21,800.
Careers in Asia:
An entry-level Insurance Agent with less than one year experience can expect to make an average total remuneration (includes bonus, tips, and overtime pay) of ₹200,000. An early career Insurance Agent with 1-5 years of experience makes an average total remuneration of ₹235,832. A mid-career Insurance Agent with 5-10 years of experience makes an average total salary of ₹325,000. An experienced Insurance Agent with 10-20 years of experience makes an average total compensation of ₹400,000.
The need for insurance sales agents tends to increase with the growth of the overall economy and population growth. The BLS expects employment of insurance agents to grow twenty-two percent from 2010 to 2020, which is eight percentage points quicker than the national average for all occupations. Candidates that speak multiple languages or with college degrees should have the best job prospects.
2020 Salary Information for Insurance Sales Agents
According to the U.S. BLS, insurance sales agents earned a median annual salary of $50,940 in 2019. On the low end, insurance sales agents earned a 25th percentile salary of $36,520, meaning 75 percent earned more than this amount. The 75th percentile salary is $77,460, meaning 25 percent earn more. In 2019, 475,900 people were employed in the U.S. as insurance sales agents.