How to Become an Insurance Broker

If you googled “how hard is it to become an insurance broker”, instead of “how to become an insurance broker”, you may as well stop while you’re ahead. It ain’t for the faint of heart.

Becoming an insurance broker is not usually a childhood dream, and it certainly doesn’t hold the appeal of glory or fame, but what it lacks in allure it makes up for in gains… and not the kind you get in the gym. More like being part of $100 billion+ industry, and having significant growth potential.

Are you actively looking to become an insurance broker? Depending on how new you are to the world of selling insurance, the difficulty of your quest will vary. However, regardless of the category of insurance you sell, and regardless of your qualifications on paper, the one true – and quite unspoken – rule in the world of selling insurance is the same as selling anything, anywhere:

It’s about “relationships”. You gotta “know a guy”.

Think of the old adage about catching more flies with honey than vinegar, and think about the most successful salespeople you know (no matter the niche). Looking past their gold watches, and fancy cars, consider how they engage with all people (not just active sales). 9/10, we wager you’ll find them to be friendly and approachable.

Insurance is no different in tone – but quite more advanced in intensity. The position of broker, even more so. To be a successful broker, any dreams of being a reclusive and mysterious rich elite that rarely interacts with mankind, must be released, with joy.

Basic Qualifications

A great way to take on any industry is, of course, to be armed to the teeth with preparatory degrees, like a degree in financing, insurance, or tech.

However, it’s not mandatory.



To actually sell insurance, you only need to be certified through NIPR. The National Insurance Producer Registry is the one-stop-shop for all your insurance certification needs. If you’re already an insurance agent, you may be familiar with the process.

To go from an agent to a broker is the distance of a couple more certifications.

You will need certification in your state, and you will need for your niche. Beyond that, further needs will depend on either your state or your niche.

Get Even More Comfortable with Rejection

Being a producer is tough and being a broker is tougher, but in different ways. 

As a producer, you usually have the “freedom” of being restricted by your broker’s goals. You’re given a single-minded goal, with a narrow demographic to work with, and you can focus on immersing yourself as deeply as you need to, to reach said goal.

As a broker, it’s you that now has to establish all the growth goals, supervise and manage producers that work with / for you, as well as maintain your own circle of networking.

So, pretty much everything you did or would do as a producer, times 10.



Basic Responsibilities of an Insurance Broker

• Be fully up-to-date with all regulations and updates in the industry
• Supervise and manage insurance agents
• Establish new opportunities and skillfully delegate the sales
• Maintain administrative needs for clients
• Record-keep like your life depends on it
• Stay compliant
• Define Your SWOT

Understanding the technical steps of how to become an insurance broker is not what will help you succeed, though. You success will depend more heavily on your personality / ability to sell, and, crucially, your ability to run your business well. Remember, once you become a broker, you take on many more responsibilities than an agent.



Now you’re a business like any other, so start with your basic SWOT analysis – only, make it personal to you.

STRENGTHS

Begin with your strengths as a producer, then your strengths in insurance knowledge, especially your niche; continue to create lists of your strengths like that.

WEAKNESSES

We all like to believe we’ll be honest when listing our weaknesses, but the success of your career as a broker will depend on the extent of honesty you’re able to achieve with this list.



OPPORTUNITIES

You may have existing networking opportunities at your current stage, or upcoming ones you may not realize are opportunities. Write it all down.

THREATS

Staying on the precipice between paranoia and awareness, try to write list of threats to your success – that are not related to your character weaknesses listed before. Examples may include logistical trouble obtaining licenses, etc.



Be In Business

Once you’ve triple secured your licensing and necessary certification / training compliance, and you’ve established your SWOT analysis, you can proceed with building your business.

Go forth and conquer.