Your Guide To Becoming An Insurance Broker


Choosing the path of an insurance broker is a steady start for your career, where you help your clients decide on the insurance coverage meant best for them. It offers you many benefits, and you can work remotely if you like. This guide will highlight that path for you, telling you what kind of education qualifications, exams, and licenses you would require to be an insurance broker.

Broker or Agent: What is the difference?

The terms insurance broker and insurance agent are mostly used interchangeably by the general mass. But you should start by correcting that mistake and understanding the difference between an insurance agent and broker.

An insurance agent represents an insurance company and acts as a link between the company and the clients. They explain the kind of insurance they offer and the various terms and conditions that come with it. However, their loyalties lie with the companies they represent; for each insurance coverage bought, they get a commission.

On the other hand, an insurance broker represents the clients and individuals. Their duty includes understanding and acquiring insurance that best fits the financial needs of the clients they represent. They, too, work for a commission as agreed between them and their clients.

Roles Of An Insurance Broker

Because of their in-depth knowledge of their subject, these brokers help their clients buy insurance policies best suited to their needs. They can usually specialize in one policy area — for example, automobile or life insurance. They have a good idea of the kind of policies existing in the market and hence can offer a range of types and prices.

Here is what an Insurance broker does:

  • Analyze the financial state, need, and risk factors of clients
  • Offer a range of policies best suited for the client to buy
  • Guide them into purchasing the right policies
  • Update policies and keep offering advice after selling a policy

How To Become An Insurance Broker?

So, how do you become an insurance broker? Many factors may influence your path to this career, but generally, there are three main things to decide on — education, specialty, and licenses.


You only need a few education qualifications to become an insurance broker. Having a high school certificate works just fine. However, having a degree in your possession will help improve your chances at job opportunities.

You can have a degree in economics, finance, accounting, marketing, sociology, psychology, or any such subject. You can also try interning at insurance companies to solidify your chances at a career.


As we mentioned earlier, insurance brokers usually specialize in one area. Understanding which ‘line of authority — as they call it — you are interested in can also help you choose your educational path. A few examples are property, accident, health, life, etc. Remember that various countries and states need you to have specific licenses to sell policies on a particular line of authority.


Acquiring licenses will depend on the kind of line of authority you have chosen. As we mentioned, different places will require you to have separate permits to sell policies of a line of authority, so if you wish to specialize in multiple lines of authority, research and ensure that you qualify for the pre-licensure requirements.

Once you have met the requirements, sit for the designated exams and pass them. They are usually electronic and come in an MCQ format. If you don’t pass, you can reschedule and try another time. As soon as you pass, you will have your insurance broker’s certificate and be ready to start your career.


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