Most people have their first contact with an insurance company through an insurance sales agent. These workers help individuals, families, and businesses select insurance policies that provide the best protection for their lives, health, and property.
Insurance sales agent commonly referred to as “producers” in the insurance industry; sell one or more types of insurance, such as property and casualty, life, health, disability, and long term care. Property and casualty insurance agents sell policies that protect individuals and businesses from financial loss resulting from automobile accidents, fire, theft, storms, and other events that can damage property. For businesses, property and casualty insurance can also cover injured workers’ compensation, product liability claims, or medical malpractice claims.
Life insurance agents specialize in selling policies that pay beneficiaries when a policyholder dies. Depending on the policyholder’s circumstances, a cash-value policy can be designed to provide retirement income. Health insurance agents sell health insurance policies that cover the costs of medical care and loss of income due to illness or injury. They also may sell dental insurance and short-term and long-term disability insurance policies. Agents may specialize in any one of these product areas, or function as generalists, who provide multiple products to a single customer.
An increasing number of insurance sales agents are offering comprehensive financial planning services to their clients. These services include retirement planning, estate planning and assistance in setting up pension plans for businesses. As a result, many insurance agents are involved in “cross-selling” or “total account development”. Besides, these agents may become licensed to sell mutual funds, variable annuities, and other securities. This practice is most common with life insurance agents who already sell annuities, but many property and casualty agents also sell financial products.
Insurance agents also prepare reports, maintain records, and seek out new clients. In the event that policy holders experience a loss, agents help them settle their insurance claims. Increasingly, some agents are also offering their clients financial analysis or advice or how to minimize risk.
Insurance sales agents working exclusively for one insurance company are referred to as captive agents. Independent insurance agents or brokers represent several companies and match insurance policies for their clients with the company that offers the best rate and coverage