How to Become an Insurance Agent — 4 Easy Steps

Agency Height
3 min readOct 21, 2020


Insurance agent — how to become an insurance agent

How to become an insurance agent is the question that you might have if you are willing to start your career in the insurance industry. Well, you first need to have an insurance license to start your career to become an insurance agent and sell insurance policies. You can even start your insurance agency and enjoy the flexibility that comes along with the profession.

Additionally, the insurance industry is a vast sector to build a career. Compared to working in other financial areas, working in insurance can be flexible. The growth potential is also huge. One of the perks of insurance is that it can withstand recessions. To insurance agents, therefore, starting your own insurance agency can be very fruitful and you can alongside grow your book of business.

Here are the steps you have to follow to start a successful insurance agency:

1. Do your research

To run an insurance agency, you will need to know the insurance industry and how it functions. You will also need outstanding salesman and management skills. If you are not well informed about insurance it will be hard to break into the scene. After all customers will come to you for insurance advice. You will also need excellent management and salesman skills. Make sure you cover all your bases with research.

2. Create a business plan

There are other tips on how to become an insurance agent, but here is a good one. If you want to start an organization you need a business plan. Each company requires a sound business plan. A sound business plan will place your organization on the right track and convey your interest to current and future customers, such as the carriers you represent. If you want investors to fund your company it is a critical move. A strong business strategy will help you think about your insurance agency’s dream and the future.

3. Get a license

You cannot work as an insurance agent or start an agency without an insurance license. You can get this license from the National Association of Insurance Commissioners. You need to pass an insurance license exam and score 70%-75% to pass. The courses you need to take before taking this test can cost $300-$500.

4. Associate the agency with insurance carriers

Your agency needs to be affiliated with an insurance carrier to sell insurance. Insurance providers will associate themselves with agencies that sell their products. Such carriers will only give you access to their products if they find that your work is worthwhile. Having a good business plan in place will help you in impressing carriers.

These are the essential steps you need to take to set up your insurance agency. Running an agency isn’t enough, though. There are crucial skills you need to master and to know how to become an insurance agent and thrive!



Agency Height

Agency Height is an insurance blog that offers insurance agents content about the insights and queries of the industry to make their work more efficient.