Whether you are a student who has just graduated from university or an experienced professional making a change, the career path of an insurance broker in the UK is a promising one. You may not realise it, but many things are not possible to do without insurance. For instance, you cannot drive a vehicle without home or motor insurance. If you’re applying for a mortgage, your lender will require that you have home insurance.
Since insurance is so necessary, the insurance industry is constantly expanding and needs new employees like insurance brokers. Insurance companies need dynamic, competent individuals with high ethical standards to match the right products and services they offer with the right clients.
In this article, Insurance Business delves into important information about how to become an insurance broker in the UK. Read on as we provide insights and answers other pertinent questions about the career in this guide.
An insurance broker serves as an intermediary between insurance companies and businesses and individuals who need insurance coverage.
It’s the insurance broker’s job to do the nitty-gritty of finding the best insurance policies for their customers. These professionals are regulated financial advisors who research insurance companies and products, then recommend the best options to clients. However, there are other duties that an insurance broker must perform in the course of their business, including:
As you can imagine, the work of an insurance broker can be a highly valuable service, as few people have the time or capacity to navigate the complexities and nuances of insurance policies.
The insurance broker career path is not a very easy one to embark upon. There are eligibility requirements, fees, and work experience requirements to fulfill before acquiring your license.
Here are the steps on how to become an insurance broker:
While there are no formal educational requirements for becoming an insurance broker apart from completing secondary school or a GCSE, a bachelor’s degree in a relevant discipline can be very helpful. Viable degrees include:
These kinds of degrees can be part of how to become an insurance broker in the UK, and a potentially successful one at that. That’s because these degrees can help develop the relevant career skills you’ll need. With any of these degrees, you can have the fundamental industry knowledge and develop your interpersonal skills. Salesmanship is an essential part of working as an insurance broker.
Once you have completed your education, it’s a good strategy to choose which insurance line to specialise in before starting your career. By choosing your specialty early on, you can have an easier time plotting your insurance broker career path.
For instance, if you decide to specialise in health insurance, you can begin searching for the appropriate training programme and apply at companies that can help you gain the relevant work experience. You can read how to become a health insurance agent in the UK guide for ideas here.
Here are the possible lines of insurance you can specialise in:
When choosing a specialty area, it would be wise to consider your interests, background, and preferences. As you go through the process of how to become an insurance broker in the UK, it makes sense to choose the path of least resistance to increase your chances of success. This is a long-term career, and your happiness and long-term success can depend on how much you enjoy your work.
Knowing your speciality and focusing your efforts on delivering terrific products and services can also spell quick success. Just ask this insurance broker in Southern England who knew his specialty early and made his insurance brokerage company stand apart from rivals.
Think about the sort of clients you’d like to work alongside and service as well. If you wish to work with owners of tech startups, you may want to consider specialising in niche insurance policies for hi-tech equipment. If you are passionate about cars, there’s nothing preventing you from becoming an expert in motor insurance.
Part of how to become an insurance broker is to take on work as an apprentice. Some insurance brokers credit their development and success to taking on higher apprenticeships. Apprenticeships differ from higher apprenticeships in that they require aspiring insurance brokers to have level 3 qualifications (A Levels or equivalent) and at least five GCSE grades including Maths and English. Apart from these academic qualifications, they must be 18 or above to apply for higher apprenticeships. Higher apprenticeships can take two to three years to complete.
An alternative strategy to how to become an insurance broker is to work in the insurance industry. Depending on the insurance company, an entry-level position can suffice as long as the role is insurance related. The only minimum requirement for taking this route is to have graduated from secondary school or earned your GCSE. There are some insurance companies that hire aspiring insurance brokers right out of secondary school and place them in roles like:
The company that hires you for such roles can provide you with additional training as you work for them. This is also a strategy for some insurance companies to groom and develop talent from within, so this can be a mutually beneficial way of becoming an insurance broker.
Whether you graduated from secondary school, trained via educational programme or online course, or entered the insurance industry with an entry-level position, you should obtain professional qualifications.
You can earn the right qualifications by taking courses from accredited professional organisations. There are hundreds of these that offer the appropriate courses for your qualifications, including:
Earning these qualifications serves as proof to potential clients and employers that you possess the knowledge and skills necessary to meet their specific insurance needs. In most cases, you can earn the insurance diploma, advanced diploma or level 4 certificate after your higher apprenticeship or degree programme. The level 3 certificate is typically reserved for trainee brokers who earn the qualification while they are employed.
Once you’ve completed your training programme, you can register with a recognized professional body like the Chartered Insurance Institute (CII). If you're drafting insurance documents or selling insurance policies, you must also register with the Financial Conduct Authority (FCA).
You can do the paperwork online, submit your proof of training or education and then register as an insurance broker. Don't forget to review the specific requirements in your district and ensure you meet all registration qualifications and insurance specialty.
Once you’ve completed all the requirements for how to become an insurance broker, you can seek employment at an insurance brokerage or set up your own company. If you took on an apprenticeship, you could work for the company that trained you.
Your other options include:
Another viable option is to register as an independent insurance broker. Should you take this route, you must start reaching out to potential clients and build your network. As you build your business, you can travel to customers or open a brokerage office.
When looking for an insurance broker role, don’t forget to take a look at insurance industry trends. Doing so can show you which types of novel insurance categories are opening up. For example, climate change insurance will soon see a lot of growth and this sector will need dynamic brokers to meet the demand.
While there are no formal educational requirements for becoming an insurance broker, obtaining the relevant work experience and qualifications can greatly enhance your career prospects.
If you are seeking higher positions or higher apprenticeships, most insurance brokerage firms may require that you have 4 or 5 GCSEs at grades 9 to 4 (A to C), with A levels or equivalent qualifications.
Should you opt for a university degree, these can give you what can serve as foundational knowledge about insurance and a competitive edge:
These are a few examples of the types of certifications and licenses you need to become an insurance broker. Note that these licenses and certifications may have slightly different names, depending on the professional organisation that you sign up with to get these requirements.
Getting the proper registration and licenses are crucial elements of how to become an insurance broker. You will need authorisation from the FCA, since this regulatory body oversees most financial services, including insurance brokering.
While formal education is helpful, this is not mandatory. Potential employers of new insurance brokers typically prefer candidates with good interpersonal skills. Employers place a premium on communication and negotiation skills. These attributes increase the chances for an insurance broker to close a sale and maintain client relationships that can result in more leads.
Aspiring insurance brokers can succeed in the UK if they focus on the relevant qualifications, learn from work experience, and develop their personal skills. All these are part of how to become a successful insurance broker, and with a bit of luck, you look forward to a long and lucrative career in the UK insurance industry.
What’s a day in the life of an insurance broker in the UK like? Here’s a video that offers some clues and valuable advice as you launch your career.
If you’re looking for industry leaders to model your career from, our Best in Insurance Special Reports page is the place to go. You can find out how these professionals rose through the ranks to become among the industry’s respected leaders.
Did you find this article on how to become an insurance broker helpful? Let us know in the comments.
