Are you interested in a position that allows you to create your own work-routine, while also having great earning potential? Can you relate to people easily and have great customer service skills? A remote insurance agent job might be just the thing for you. As more consumers choose different types of insurance, the need for remote insurance agents is rapidly increasing, regardless of whether you’re just starting out or already a licensed professional. Here’s an overview of the exciting sector: How much do these agents earn? On average, insurance agents earn a mean annual salary of $79,650 or an hourly rate of $37. Insurance agents typically do not receive direct payments from clients. Instead, they earn commissions on the insurance policies they sell, which are paid by insurance companies. These commissions are a percentage of the premium that the insured pays. Additionally, many insurance agents earn salaries and bonuses from their employers, providing a more stable income stream. For new home and auto policies, agents can earn between 10% to 15% commission. For renewals, the rate is around 2% to 15%. For example, the majority of agents working for companies like American Family Insurance earn between $44,500 and $77,000, with the top 10% earning over $99,500. Life insurance agents can receive front-loaded commissions of 40% to up to 115% on new policies. For renewals, these numbers dip to about 1% or 2%. In the case of health insurance, the average commission is between 5% and 10% for new policies. Group policies may earn you slightly lower commissions of around 3% to 6%. For example, the average total pay for a New York Life insurance agent is between $97,000 and $178,000 per year. This includes a base salary of around $79,000 and an additional pay of around $50,000. What are the types of insurance agents? Depending on the type of employment, there are mainly two types of agents: Captive insurance agents: These industry professionals represent only one insurance provider. They can be employed full-time by an insurance agency or work as independent contractors. Captive insurance agents typically receive operational support from their affiliated insurers, which may include office facilities and administrative help. Organisations like Erie Insurance, Nationwide Mutual Insurance, Liberty mutual insurance, and many more often employ large networks of captive agents to handle their policies. Independent insurance agents: Independent insurance agents work with various partner insurers, giving them the flexibility to offer clients a diverse array of policy options. Since they aren’t tied to a single insurance company, they generally earn higher commissions than captive agents. However, they also face the challenge of covering their own business expenses, such as office supplies, rent, and marketing costs. Here’s a step-by-step guide to becoming a remote insurance agent in 2024: 1. Figuring out your state’s pre-licensing requirements: Each state in the U.S. has its own terms and conditions for obtaining an insurer’s license. Some states even require you to attend a 20-hour pre-licensing course in a classroom or through online platforms before sitting for an exam. To find out more about state-wise requirements, click here. 2. Taking the insurance examination: The official licensing exam takes about two to three hours, and is held at a testing centre at a scheduled time. The question format is typically multiple-choice. The exam will test your knowledge on insurance terminologies, numbers, and practicality-based scenarios. You’ll need a score of over 70 to pass the exam. To find out more, click here. 3. Documentation and background check: After the exam, you need to submit the required documents to your state’s licensing authority. Some states also require a fingerprint and background verification. Once the checks come through, you will have acquired a license and the authority to discuss and less insurance. To find out more, click here. 4. Partner with insurance companies: Whether you are working as an independent agent or a captive one, you will need to apply to insurance companies and obtain permission to sell their policies. Some companies will even have training modules of their own for their agents. Here are some of the companies you can work with as a remote insurance agent: Erie Insurance: Erie is a property and casualty insurance company that works with a network of independent agents. It offers home, auto, business, and life insurance services. To become an insurance agent for Erie, you need to hold a current property/casualty license and life/health license in your state. To partner with the company, apply here. American Family Insurance: American Family Insurance, or ‘AmFam,’ focuses on property, casualty, and auto insurance. The company also offers commercial insurance, life, health, and homeowners coverage, as well as investment and retirement-planning products. To become an AmFam agent, you need a license in property, casualty, life, and health insurance. You can then get in touch with a sales leader, go through a screening process, and begin. To partner with the company, apply here. Nationwide Mutual Insurance: Nationwide is a group of large U.S. insurance and financial services companies, based in Ohio. They mainly offer vehicle, property, personal, and business insurance services. Insurance agents need to fill out an online application, with details such as total written premium, new monthly quote flow volume and issue rate. To work for Nationwide Financial, you need to pass a required online training course. To partner with the company, apply here. Mercury Insurance: Mercury Insurance is a multiple-line insurance organization that offers personal automobiles, homeowners, renters, and business insurance. Mercury's primary focus is automobiles and homeowners' insurance. The company operates through a network of local, independent agents in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia. To work as an agent for Mercury insurance, you need a separate license, along with a carrier license. To partner with the company, apply here. New York Life Insurance: New York Life Insurance company, along with its flagship life-insurance, offers a variety of services, in Investment, Wealth Management, and Retirement planning. To become an agent, or ‘Financial Professional’ for the company, you have to fill out an online assessment and submit a resume. The company will then reach out for an interview and will offer training programs if you are selected for the role. To partner with the company, apply here. Liberty Mutual Insurance: Liberty Mutual Insurance is the fifth-largest property and casualty insurer in the world. It provides personal automobile, homeowners, workers' compensation, commercial multiple peril, commercial automobile, general liability, global specialty, group disability, fire insurance and surety. Liberty Mutual backs an insurance agency called Comparion, that connects customers with its top national and regional carriers. To partner with the company, apply here. Whether you’re embarking on your career or transitioning from a captive agency, the need for skilled agents is growing rapidly. Teaming up with reputable insurance companies will improve your ability to serve clients and grow a successful business. If you’re passionate about helping others and motivated to excel, a career as a remote insurance agent could be an ideal choice for you. For more opportunities, check out the insurance jobs available at Hirey.