The occupation of insurance agent is an excellent choice for people who enjoy engaging with and helping people, like the challenge of interpreting complex terms, and want to develop their salesmanship skills. Working as an insurance agent in the UK can also be financially rewarding.
If all these sounds enticing, then this insurance sales career may be right for you. You can become an insurance agent whether you are graduating from secondary school or university or are an experienced professional looking for a career shift.
In this guide on how to become an insurance agent in the UK, Insurance Business provides insight into important topics related to this endeavour. We'll show you how to become an insurance agent in the UK even without experience and how to become an insurance agent in the UK for free. We’ll also answer frequently asked questions about the profession.
An insurance agent is mainly a salesperson. Their role typically involves selling insurance policies based on their client’s requirements. Once they’ve assessed and evaluated the needs of an individual client or business, that is when they propose the most suitable insurance products. Apart from this, here are some other tasks that insurance agents may perform:
Once you’ve decided on pursuing this career, how do you become an insurance agent in the UK?
Here are the steps:
As with becoming an insurance broker in the UK, there is also no formal educational requirement for those who want to become an insurance agent in the UK. However, most insurance companies or agencies prefer that candidates at least have completed their secondary school (GCSEs). You should have at least five GCSEs at grades 9 to 4. A-levels may also be required if you want to seek higher apprenticeships.
While there is no requirement for a formal education to become an insurance agent, having a degree can give you an advantage over other candidates. If you would like to secure a management position or open your own insurance business in the future, a university degree can be useful in this endeavour. Clients and insurance companies may also hold you in higher regard if you have a university degree. Here are some degrees you can take that can be useful for your career as an insurance sales professional:
It’s advisable to choose your specialisation as you go through the process of becoming an insurance agent in the UK. When you make this decision early on, it’s easier for you to map out your professional career and plan the steps that follow.
For example, an aspiring agent who wants to specialise in life insurance should pursue a training programme for this specific type of policy. When choosing your insurance specialty, consider your educational background and interests. For instance, if you have a degree in mechanical engineering and have a passion for automobiles, then making auto insurance sales as a car insurance agent would be right for you. Common types of insurance you can choose include:
Some years of work experience in an insurance-related role is typically required before you can take on certified insurance training. If you chose to get a university degree, you could apply for entry-level jobs at insurance companies or agencies. You can choose jobs like trainee agent, customer service representative, or insurance technician.
Completing a certified training programme from the Chartered Insurance Institute (CII) is a sound strategy. Note that this is optional, but as with obtaining a university degree, this can give you better chances to stand out from other aspiring agents and secure a better position at an insurance company. Depending on your chosen specialty, you can pursue these training programmes and earn professional qualifications:
To become officially licensed to sell insurance, you need a licence from the Financial Conduct Authority (FCA), an organisation in-charge with regulating the financial services industry. To get a licence, you must submit an application along with proof of your qualifications, experience, education, and training. These requirements may vary depending on your location, so be sure to prepare the necessary documents.
Typically, as with financial advisors in the UK, you will be subjected to a background check required by the FCA. This is necessary to be deemed an "approved person" at a financial institution., All aspiring agents must meet the FCA’s regulatory requirements. You'll be expected to pass or comply with the following:
Aspiring insurance agents are also encouraged to disclose any information that could affect their suitability for any of these FCA screening tests.
After obtaining your licence from the FCA, write your resume. Be sure to detail your relevant experience, education, skills, certifications, licences, and qualifications. You can tailor-fit your resumé for each job application, highlighting the relevant skills and experience befitting the role. Check the newspapers for job postings and use the internet to visit the websites of insurance companies and look in job forums. Don't forget to leverage your professional network and inquire about job opportunities as well.
Keep in mind that you must comply with certain rules to retain your FCA licence and continue working as an insurance agent in the UK. Maintaining your licence entails the following:
Generally, there are two main types of insurance agents:
The captive agent is one that works for or is contracted by a single insurance company. These agents specialise in the products of a single insurance company., This means they have in-depth knowledge of insurance policies, discounts, additional coverage options, and insurance products.
Another advantage captive insurance agents have is that they can streamline their insurance procedures. One drawback, however, is that captive agents can earn fewer and smaller commissions since they typically also receive a fixed monthly salary from the insurance company or agency they work for.
As the name suggests, these are agents who work independently of any single insurance company or agency. They are free to offer as many insurance products from as many insurers as they like. The advantage for clients is that an independent insurance agent can offer many different coverage options, unlike a captive agent.
These insurance agents can also compare prices of different insurance policies from different insurers and offer their clients a better deal. Thanks to the variety and more competitive pricing, many customers prefer transacting with an independent insurance agent.
Yes. Technically, it is possible to become an insurance agent without paying for courses designed to earn you a professional qualification. However, this process of how to become an insurance agent in the UK may take comparatively more time and effort.
A good strategy for gaining relevant work experience and knowledge for becoming an insurance agent is to take on apprenticeships. This is an effective path, since candidates can earn while they learn. Apprenticeship programmes afford aspiring insurance agents the advantage of having the opportunity to get licensed without paying any upfront costs.
Some insurance companies may offer entry-level roles that only require a secondary school diploma. Job opportunities like these can be a useful stepping-stone to the insurance profession while providing the necessary training, experience, and networking opportunities without the significant cost of investing in higher education.
Obtaining a professional qualification from the CII, for instance, can enhance job prospects and offer upward mobility in the insurance industry, but this does not come cheap. However, getting sponsored by your employer or via special government-funded scholarships is not uncommon.
It is mandatory for any individual to register with the FCA before working as an insurance professional. This will involve paying non-refundable compliance and registration fees, but your employer may shoulder these costs, especially if they offer training and support for your licensing or certification.
The average salary for an insurance agent in the UK is estimated at £26,212 per year. But keep in mind that salaries can vary depending on their location, area of specialty, skill, experience, and other factors. Here’s a simple table showing the subtle differences between different sorts of insurance agents in the UK:
|
Insurance agent’s location |
Average earnings/salary per year |
|
London |
£63,092 |
|
Bristol |
£36,031 |
|
Bournemouth |
£35,002 |
|
Leeds |
£32,036 |
|
Preston |
£31,777 |
|
Manchester |
£30,585 |
|
Glasgow |
£25,028 |
|
Portsmouth |
£23,443 |
|
Birmingham |
£22,986 |
Insurance agents need to have a particular set of skills to become successful in their role. Here are some of the most critical skills an insurance agent should possess:
Insurance agents must be adept at interpreting complex insurance terms, concepts, and conditions then relay these to clients in simple language. Communication skills are also important to ensure that clients do not get confused or misunderstand their insurance policies.
Exceptional customer service is another key component for success. This involves listening to a client’s issues and concerns, then recommending insurance products that meet their needs. Part of excellent customer service is delivering your service with honesty, integrity, and a high level of responsibility and attentiveness. Without these, clients will not entrust you with their money.
When delivering good customer service, it’s unrealistic to expect you to be able to read your client’s minds. You can, however, be more aware of what they need and what they’re looking for in an insurance agent. Here’s a useful video that gives you a better idea of what potential clients could expect of you:
Being good at maths is essential to being a good insurance agent. As your work deals heavily with numbers, it’s crucial for you to accurately calculate policy premiums and determine the exact costs of coverage. Remember, any errors in premium or insurance cover calculation can lead to customer dissatisfaction. This skill can also be helpful in making last-minute revisions or changes in the insurance plan.
The ability to learn quickly is a useful skill to have as an insurance agent. The insurance industry is certainly complicated, with many insurance products that have various legal and tax aspects. To become a successful agent, you need to quickly develop an in-depth knowledge of insurance policies and know which to recommend to customers.
Your role as an insurance agent will involve scheduling meetings with potential and existing clients. For this you will need good organisational skills to make effective and efficient use of your time. If you have an employer, they will need you to have a keen eye for detail to avoid errors in calculations and keep accurate records of transactions.
Aside from knowing how to use a computer, you may be required to use different tech tools for your insurance practice. Employers prefer agents who are adept at using these tools and can quickly adapt new technologies like the best new software programs and apps that automate claims filing and other processes. An insurance professional who knows how to use social media for marketing strategies is also one poised for success.
Becoming an insurance agent in the UK can be a long and challenging process, depending on your educational background and personal circumstances. Aspiring insurance agents should not be discouraged, however. If you don’t have qualifications or an education that is beyond the minimum required GCSEs, you may still (literally) work your way to becoming an insurance agent.
Remember that there are many online resources you can use, like this guide that familiarises candidates with the important insurance terms in the UK insurance industry. Don’t be discouraged if you find it difficult to obtain higher education or additional professional qualifications. You can find opportunities for financial support or employer-sponsored certifications or qualifications to earn your licence.
Did you find this guide on how to become an insurance agent in the UK useful? Share us your insurance agent journey in the comments!
