How to become insurance broker

Insurance broking can be a rewarding career and one with longevity. Despite these days being able to purchase insurance quite quickly online, it’s likely the human ‘person to person’ element that an insurance broker can provide will continue to be in demand.

Individuals and businesses will always seek out good service and specialist opinion and skills. Whether you’re looking for a career change or wanting to launch your first career, here’s some advice on how to become an insurance broker in Australia.

What do insurance brokers do?

Insurance brokers act on behalf of their clients, be they organisations or individuals, and they provide professional advice about trades, business, property, and personal insurance products from a range of insurance companies.

One day you could be helping a business with public liability insurance, the next day, home and contents insurance.

Insurance brokers also help people assess their risks and which assets they should insure and at what level. These insurance broking professionals give advice on different insurance products and guide their clients towards the insurance policies that are best suited to that client’s particular needs.

Brokers also use their contacts to find and arrange customised insurance packages from a large number of insurance companies. They also act on their client’s behalf in the event that an insurance claim is made.

How do you become an insurance broker?

Apart from having the right skills and attributes, certain education and qualifications are also required.

To become an insurance broker in Australia, you actually don’t need a bachelor degree. You will however need to complete a Certificate III in Insurance Broking at an accredited training provider.

Entry to these types of training courses usually requires you to have completed Year 12 study. The particular course you choose will need to comply with the Australian Securities and Investments Commission’s (ASIC) Regulatory Guide 146. The insurance industry in Australia is regulated by ASIC.

A compliant insurance broking course will provide you with:

• A thorough understanding of the insurance market
• The financial and legal obligations and requirements, and
• The code of conduct governing the insurance industry.

What’s next to become an insurance broker?

Once you have your Certificate III qualification, you’ll need to further your knowledge by undertaking the Diploma of Insurance Broking. This course is designed for new students entering the industry.

This qualification will give you a greater understanding of what it’s like to work as an insurance broker, advice on creating and nurturing client relationships, and an understanding of the risks and complex client needs.

The course typically covers:

• Negotiation and communication skills
• Basic insurance broking skills
• Claims handling
• Retail insurance products and policies
• Record management skills

Obtaining this qualification is a necessary step to gaining your Australian Financial Services Licence (AFSL) and it will give you the tools you need to start applying for your first job with a licensed insurance broker.

Getting experience as an insurance broker

Before you can get your AFSL, you will need to get some work experience with a licensed insurance broker. You can also do this as a traineeship or an internship and it must be documented for your AFSL application.

Normally, you’ll need to gain several years of work experience with a qualified broker before becoming an independent broker yourself.

Once you’ve completed the above training, you can then apply for your AFSL and become a qualified insurance broker. The Australian Securities and Investments Commission has several requirements for registration. These can vary according to the type of insurance you’re interested in working in.

What makes a good insurance broker?

Having good communication skills, being a strong negotiator and a sound researcher are all good traits for insurance brokers.

It also helps if you’re good with figures, details and information, you’re organised, and can work efficiently. Being able to strike up a rapport with people and listen to their needs are other skills that will stand you in good stead in this job.

Insurance brokers deal with people so having empathy, understanding, good listening and conversational skills are essential as is being trustworthy and able to build rapport with clients. Part of your role is to give people peace of mind that you understand their situation or their business and that you’re working in their best interest to find them the very best cover.

The team at Phoenix share many of the above traits making them the most trusted Western Australian insurance broking firm.

Joining local broking associations

You might also want to consider becoming a member of one of the insurance broking associations in Australia, such as NIBA, The National Insurance Brokers Association. This is the peak body for the intermediated insurance industry and home to trusted risk advisers.

The benefit of membership with NIBA is gaining access to resources and industry connections that can help you as a newly licensed insurance broker. Membership will also help you with professional personal development opportunities.

What can you expect to earn as an insurance broker in Australia?

In Australia, insurance brokers can expect to earn between $40,000 and $110,000 per annum on average. Of course, this will vary from firm to firm and how much business you write.

In summary

Becoming an insurance broker in Australia requires certain attributes together with certain qualifications.

Helpful attributes:

• Empathy, understanding
• Good with numbers
• Attention to detail
• Strong communication and listening skills
• Research and negotiation skills
• Being able to build rapport with a range of people, trustworthy.

Qualifications and training:

• Completion of year 12
• Certificate III in Insurance Broking from an accredited institution
• Diploma of Insurance Broking
• Australian Financial Services Licence

The Phoenix Insurance Brokers team can help you to find the right insurance cover for your needs. Whether you’re an individual or business owner looking for some more information on insurers or policies, our dedicated team will work with you to get the best possible products and advice to suit you.

Contact us today to see how we can help you.

In Ontario, insurance brokers sell insurance for vehicles and homes. In order to be licensed as a broker, you must pass an exam and be sponsored by an experienced broker. The most successful insurance brokers are those who like working with a wide variety of clients and enjoy doing sales. The insurance broker salary can be substantial if you work hard and have skills in prospecting for new clients.

What is an insurance broker?

In Ontario, insurance brokers help clients to find appropriate insurance for autos and homes. They are a separate occupation from those who sell life insurance.

He or she will determine what the client needs, recommend an appropriate policy and get price quotes from several insurance companies. In the event that a claim needs to be filed, the broker will facilitate this, helping the client through the process. Brokers should be comfortable speaking with clients who may have just faced an upsetting car accident or household incident.

How to become an insurance broker in Ontario (step by step)

The first step is to decide whether this is the field for you. Invite a few experienced insurance brokers to speak with you on the phone or over coffee. Ask them what kind of tasks they do during their workday and whether they have positive experiences of working with clients.

Sales is an important component of being an insurance broker. You must like introducing yourself to potential clients and asking them about their insurance needs. This is especially important when you are just starting out – you will need to generate sales commissions in order to provide yourself with a decent income.

Here are the steps to becoming an insurance broker in Ontario:

Preparing for the exam

You need to study to prepare for the exam. The good news is that there is a wide variety of options to cover the material, including the insurance broker course online. You can take live online classes where you have a chance to ask questions of the instructor. Or you can use a self study kit to learn at your own pace. Or you can watch recorded classes.

So it really depends on your learning style and what you are most comfortable with. You may already have a full-time job in another sector or young children that you need to take care of in the early evening. You may prefer self-study so that you can learn after your kids have gone to bed.

Take the exam

The general insurance exams are coordinated by the Insurance Institute of Ontario. General agents are exempt if they have the Certified Insurance Professional designation or have already passed the Registered Insurance Brokers of Ontario exam.

Pass or fail the exam

If you pass the exam, you can apply for jobs. An existing broker will act as sponsor for your registration.

If you fail the exam, you can rewrite it within eight months. If you fail the exam twice, you will have to wait eight months before taking it again.

General insurance agent application

Once you have passed the exam, you can apply to become a General Insurance agent, which are regulated by the Financial Services Commission of Ontario. You will need to provide supporting documentation and pay the $150 application fee. In addition, you must be sponsored by a licensed insurer.

How much do insurance brokers make?

What’s an insurance broker salary? It varies – a lot. Most insurance brokerages pay a basic salary and then brokers can earn commissions on every sale. At we indicated above, sales are a key component of the job. If you are good at approaching potential customers and closing the deal, you can collect hefty commissions. As a result, insurance broker salaries can range from $40,000 to $200,000 or more.

When you are just starting out, you will find that your income is modest. That’s because it takes a while to build up a client list and get the commissions flowing. Therefore, it’s important to make a financial plan that will allow you to endure a few lean years at the outset.

How long does it take to become an insurance broker?

It varies. It can take just a few months or as long as a couple of years. It really depends on how much time you have to devote to it and whether you pass the exam on the first try.

There are two levels of insurance broker licensed with the Registered Insurance Brokers of Ontario:

• Level 1: You have passed the entry level exam. You can then seek employment and sponsorship with a licensed insurer. Once you have passed the exam, registration must be completed within 12 months.
• Level 2: You must have acted as a broker and be registered for at least two years. You must pass the Unrestricted Technical and Unrestricted Management exams within three years.

What qualifications do you need to be an insurance broker

You should have a minimum of Grade 12 education. It’s an advantage to have a college or university diploma, but this is not required.

Is insurance broker the right occupation for you?

Insurance brokers deal with a wide range of clients and situations every day. In order to make a good living, they should be able to prospect for new clients and close sales. There is no fixed insurance broker salary. An insurance broker who is successful can earn a substantial amount of money.