Insurance broker

Insurance brokers provide a link between clients who need insurance and insurers who provide cover. They identify clients’ needs, and then approach the insurers most likely to give the best quotations.

Work activities

Insurance cover is available to help customers who have suffered losses caused by events such as theft, accident or illness. The customer pays a regular amount of money (called a premium) and receives a written policy. This sets out the conditions under which the insurance company will provide a settlement by way of repairs, replacement or reinstatement of items. Brokers provide an independent link between clients and insurers. Clients could be individuals or companies. A broker first identifies a client’s needs, assesses the hazards and risks they face and examines any existing policies they have. For straightforward needs like private motor insurance, the broker usually provides the client with a quote or a number of quotes from different insurance companies. For more complex requirements, the broker approaches insurers to discuss the risks with the underwriters.

A broker always acts on behalf of the client, aiming to find the best quotes for cover from the underwriters. Where large sums of cover are needed, a broker might negotiate with underwriters from several insurance companies, getting each one to accept a percentage of the cover. In larger companies, brokers often specialise in a particular function. Account executives advise clients on their insurance needs, while placing brokers negotiate with insurance underwriters. Other specialists are claims brokers (who negotiate a client’s claim with their insurer and agree on a settlement), and technical specialists who are involved in drawing up proposals, tax planning or surveying. Some brokers specialise in dealing with clients in one particular industry sector, such as construction, commercial property or shipping, for example. Brokers might also be involved in finding new business, marketing, correspondence, record keeping and renewing existing policies.

Personal qualities and skills

As an insurance broker, you’ll need:

Strong verbal and written communication skills.
A keen interest in business.
Good interpersonal skills so that you can build relationships with clients and suppliers, provide good customer service and negotiate effectively.
To be able to prioritise your workload and work under pressure.
To be able to analyse information, solve problems and make decisions.
Report-writing, IT and time-management skills.
To be able to cope with the responsibility that could be placed on you early in your career.

Pay and opportunities

The pay rates given are approximate. Insurance brokers start on around £20,000 per year, rising to around £65,000 with experience. Other benefits could include profit-related bonuses, private healthcare and a company car.

Brokers usually work 41-43 hours a week, Monday to Friday. However, they might need to work late or at weekends to meet clients.

Employers are insurance broking firms. These range from one-person operations to international broking firms employing thousands. Opportunities for insurance brokers occur in towns and cities throughout the UK. A high percentage of financial services industry employees are based in London.

There are opportunities for experienced insurance brokers to set up their own business.

Where are vacancies advertised?

Vacancies are advertised in local/national newspapers, on employers’ websites, through the Chartered Insurance Institute careers website, on the Government’s Find a Job service, and on job boards.

Entry routes and training

Many employers recruit trainees who have an HND or a degree. Some HNDs and degrees in business studies and economics include insurance options. There are several degrees and postgraduate courses in risk management available.

There might be opportunities for entrants with A-levels, Edexcel (BTEC) level 3 National qualifications or equivalent.

A level 4 (higher) apprenticeship in the role of insurance professional is a great place to start. This way, you will work towards relevant qualifications while training within a paid job.

There are Awards and Certificates in providing financial services at levels 2 and 3. On-the-job training might be supplemented by study for the Chartered Insurance Institute (CII) Advanced Diploma exams. Some degrees could give exemptions from certain of the CII exams. Contact the CII for more details.

The Institute of Risk Management (IRM) offers both the International Certificate and Diploma in risk management by flexible distance learning.

Insurance brokers can progress to management and director posts. Some might start their own business.

Rehabilitation of Offenders Act: Working in a regulated occupation in insurance is an exception to the Rehabilitation of Offenders Act 1974. This means that you must supply information to an employer about any spent or unspent convictions, cautions, reprimands or warnings, if they ask you to. This is different from other careers, where you only have to reveal information on unspent convictions if you are asked to. Regulated occupations include advising customers on long-term care insurance.

Qualifications

For entry to a degree course in any subject, the usual minimum requirement is:

Two to three A-levels
GCSEs at grades 9-4 in two to three other subjects.

Alternatives to A levels include:

Edexcel (BTEC) level 3 National qualifications.
International Baccalaureate (IB) diploma.

However, course requirements vary, so check prospectuses carefully.

To take a higher apprenticeship, you will need two A-levels plus GCSEs in maths and English.

Adult opportunities

Age limits: It is illegal for any organisation to set age limits for entry to employment, education or training, unless they can show there is a real need to have these limits.

Some new entrants have developed skills by working in, for example, underwriting, insurance sales or clerical work. Some larger employers recruit recent graduates, especially those with numerate or business-related subjects including degrees in insurance.

If you don’t have the qualifications needed to enter your chosen degree or HND course, a college or university Access course (for example, Access to Business) could be the way in. These courses are designed for people who have not followed the usual routes into higher education (HE). No formal qualifications are usually needed, but you should check this with individual colleges. The Chartered Insurance Institute (CII) might relax the normal academic requirements for adults who wish to take their exams.

A range of colleges and universities offer courses and degrees in risk management, including at Master’s level. Study can be part time/flexible or via distance learning. Courses have been developed in partnership with the financial industry and regulators.

Sponsorship for higher education study may be available from some of the larger insurance companies.

Related careers

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Insurance administration assistant
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Insurance sales advisor
Insurance underwriter
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Tax advisor