What Is an Insurance Producer?
An insurance producer sells insurance products to clients on behalf of an insurance company. It is a rewarding career with amazing growth potential. Becoming an insurance producer is also a great way to get started in finance or to make a much-needed career change. This article explains what an insurance producer does, shows you the differences between an insurance producer, agent, and broker, and describes how you can become a producer.
What an Insurance Producer Does
Insurance producers are licensed to sell and negotiate life, health, property, or other types of insurance offered by an insurance company. As an insurance producer, you may work for one insurance company only or represent multiple carriers.
Being a producer includes finding new clients and maintaining relationships with those you already have. Insurance producers need to be a reliable first point of contact when a client needs to file a claim or increase coverage due to major life events, like purchasing a new car or having a child. Other responsibilities include:
- Calculating premiums and establishing payment methods
- Monitoring insurance claims and helping clients settle them
- Fulfilling all policy requirements
- Customizing insurance programs to suit individual customer needs
- Inspecting property to examine its overall condition and decide its insurance risk
- Acting as an intermediary between a customer and the insurance company
What’s the Difference Between an Insurance Producer and an Insurance Agent?
There is no difference. The two terms are used interchangeably to describe selling insurance on behalf of a company or multiple carriers. “Insurance agent” is the term used most often in the industry, but “insurance producer” is often the official title that states use for licensing. No matter which term you use, you will have the same responsibilities.
What’s the Difference Between an Insurance Producer and an Insurance Broker?
Insurance producers or agents represent insurance companies. By contrast, insurance brokers represent insurance buyers. In other words, producers look for clients who will buy insurance products, while brokers look for insurance products that will meet their clients’ needs. In addition, an insurance producer can bind a client to a policy whereas an insurance broker cannot. Once a broker has found a product for a buyer, a producer must complete the transaction.
How to Become an Insurance Producer
Before you can become an insurance producer (or agent), you must have a high school diploma and be 18 years of age or older. If you meet these requirements, here are your next steps:
- Decide what kind of insurance you want to sell. Examples include life and health, property and casualty, auto, and workers’ compensation.
- Learn your state’s prelicensing requirements. Many states require you to complete a specific number of hours of prelicensing education for each type of insurance.
- Pass your state’s insurance licensing exam.
You can get all the details on these steps in this article.
Ready to Get Started?
If a career as an insurance producer or agent is appealing to you, you can learn more about the job in this article. Or, if you’ve decided to take the exam and earn your license, prelicensing exam preparation and education can help.
Free eBook: Launching Your Insurance Career with Confidence
As an aspiring insurance professional, wouldn’t it be great if you could sit down with a room full of successful insurance veterans and ask them for their advice? The Kaplan Financial Education team interviewed over 100 insurance professionals to develop this exclusive eBook for those who are considering the insurance industry.