How to become an insurance broker or insurance agent

There are three main steps to follow if you’d like to become an insurance broker, says the Insurance Broker Association of Canada. You’ll be joining the more than 35,000 property and casualty insurance brokers across the country, who are represented by 11 provincial and regional professional associations.

In Canada, prospective insurance brokers must pass a licensing exam. The exam is held at the end of a training period, whose typical duration and content varies from one province or territory to another. Licences are issued by the provincial regulatory associations.

Obtaining this basic accreditation is essentially all it takes to become an insurance broker; it’s not necessary to have a college or university degree, although either is an asset. Many brokers come to the profession from backgrounds in finance, accounting, economics, business law or business administration. Specific professional designations can be earned with advanced studies in an area of specialization.

The common denominator among most insurance brokers is that they’re good with people. Salesmanship can be learned, but clients look for the human touch when they’re choosing an insurance broker. You’ll have a distinct advantage if you cultivate your desire to offer clients the best possible service. In fact, customer service is at the heart of the profession. Prospective brokers should also have enthusiasm, self-discipline and self-confidence, along with good communication, negotiation and time-management skills.

The IABC outlines several career development options for insurance brokers. Here are a few:

• customer service representative (an entry-level role)
• commercial insurance products representative
• residential insurance products representative
• producer (a role that focuses on new business acquisitions and large accounts)
• account executive
• branch manager

Although they both work in the same field, the two professions are quite distinct.

• An insurance agent usually represents only one insurance company. In essence, his or her job is to sell insurance contracts and provide followup for clients.
• An insurance broker is usually an independent intermediary. On behalf of the client, he or she shops around for the best insurance products available from various insurance companies.

So, do you have what it takes to become an insurance broker?