The Insurance Agent’s Guide to Specialisation

With so many new insurance agents entering the market, many wonder whether they should specialise in a particular field or stay unfettered and deal in general insurance. What are the benefits offered by specialisation, are there any disadvantages, how can you choose to specialise in a particular field, and should you? This article will act as a guide to specialisation for insurance agents and help you understand the answer to all of those questions.

What is the role of an insurance agent?

An agent’s primary responsibility is to generate new business for the insurance company they represent. This can be achieved by finding leads and acting on them to sell them insurance products that they deal with. They will advise prospective customers about the different offerings, understand their needs and pain points, and offer an insurance solution to that problem. These solutions are usually precisely what the customer wants. If their expectations are unmatchable for the budget they offer, you can offer a plan covering the non-negotiables. In some cases, an insurance advisor is also responsible for offering financial advice to the customer to help them plan and budget for this expense properly.

What specialisations are available to agents?

There are several specialisations that one can pursue as an agent. These can be in terms of the specific industry they deal with or their job roles within a particular sector. Industry agents are typically divided in terms of life and non-life general insurance. But there is some distinction in terms of general insurance as well.

For example:

1. Health Insurance Agent
2. Auto Insurance Advisor
3. Travel Insurance Advisor
4. Property Insurance Advisor

The second type includes the specific roles they fulfil in the Insurance industry. Let us get into the details for the second type of specialisation and understand these roles:

Insurance sales agents

This agent specialises in sales and directly deals with potential customers to offer them insurance solutions.

Customer Service Representatives 

This type of agent specialises in offering post-sales customer service. They have an in-depth knowledge of the insurance products and the terms and conditions to help the customer navigate the claims process or any particular questions.

Claims Representatives 

A claims representative must assess a customer’s claims and the facts surrounding them to evaluate the total compensation based on the coverages.

Underwriters

An underwriter assesses the risks associated with an individual and judges the premium price they must pay to avail the insurance product.

Actuaries 

An actuary uses advanced mathematical skills to understand and evaluate future risks. This is then used to determine and create new policies covering those risks.

Independent brokers

Brokers are not agents but independent parties representing clients in getting insurance. They are not bound to any particular insurance providers and recommend particular policies depending on their client’s needs. There are no real pros and cons to becoming any of them as they are all highly rewarding and great roles to work in. At the end of the day, what you should become depends on your inclinations and skills. For example, if you have an inclination to communicate with people and wish to solve their issues, become a sales agent or a customer service representative. On the other hand, if you have analytical skills and an in-depth understanding of insurance products, you can become a claims representative. Becoming an actuary is a great choice if you are great at math and possess analytical abilities. In my case, I am a sales agent for Niva Bupa and primarily deal in promoting the adoption of health insurance.

Wrapping up

Becoming an agent is a highly rewarding job, and along with the fact that it has a low entry barrier and requires no investment, it has become a highly sought-after job. By considering the roles each of these specialised agents fulfil, you can also become a successful agent in insurance.