Who Is An Insurance Broker?
An insurance broker is a professional who acts as an intermediary between a consumer and an insurance company, helping the former find a policy that best suits their needs.
What Does An Insurance Broker Do?
Insurance brokers are trained professionals in insurance and risk management solutions who help individuals and businesses find insurance policies that best meet the needs of their customers.
They may focus on a single type of insurance, or work with many different types, such as home, life, or health insurance. Whatever type of insurance they sell to clients, insurance brokers need to be well-versed and articulate to explain complex insurance terms.
How To Become An Insurance Broker In South Africa
Below are steps to Become A Insurance Broker In South Africa
Step 1: Earn a Bachelor’s Degree
Although it isn’t required, a bachelor’s degree on your resume could increase your chances of gaining employment with an insurance brokerage firm. Degree programs in business administration or economics provide you with the necessary background in finance, accounting, business law and marketing.
Step 2: Add an Internship to Your Insurance Broker Training
Some bachelor’s degree programs in insurance and risk management provide internship opportunities with insurance firms. During an internship, you’ll observe and participate in the internal operations of the firm. After it ends, you may have to submit a written report describing the experience while the employer provides a written evaluation to your instructor.
Step 3: Obtain an Insurance Broker License
You need a broker’s license from each state in which you plan to work. Licenses are available for life, personal, property and casualty insurance.
Broker’s licenses and agent’s licenses are different, although as a broker, you can still hold an agent’s license and work for companies as an agent. Some states are moving away from the two types of licenses and requiring both agents and brokers to obtain a producer’s license.
Step 4: Find a Job
At a brokerage firm, you can expect to start out either at the customer service desk or as a broker’s assistant.As you gain familiarity with the industry and your employer’s business practices, you can become a customer service rep (processes insurance transactions under supervision), personal lines rep (provides detailed coverage for personal belongings and homes) and commercial line rep (commercial and business insurance).
Step 5: Obtain Insurance Broker Certification
For professional development and career advancement, consider certification in an area of insurance where you’ve acquired expertise. The National Alliance for Insurance Education and Research offers a number of voluntary certifications for independent agents or brokers. These include the Certified Insurance Counselor (CIC), the Certified Insurance Service Representative (CISR) and the Certified Risk Manager (CRM).
Educational Requirements to Become An Insurance Broker South Africa
University graduates may be interested in applying for a graduate training scheme. Graduate trainees enter at a more senior level and are usually offered a permanent job at the end of their training programme.
Can Anyone Be An Insurance Broker?
To become an insurance broker, you usually have to complete a VET qualification. In addition, several years of experience with a qualified broker are usually required before becoming an independent broker. Entry to these courses usually requires Year 12 and, as a minimum, employment with an insurance brokerage.
Who License The Insurance Broker?
The principal officer has the adequate Qualification, passed the Brokers exam and has acquired requisite training. The company engages at least two persons with the required qualification and training. It has sufficient infrastructure and trained manpower to run the insurance broking business.
