Questions about commercial insurance broker

[ryanjtw]

Hey everyone,

I am interested in becoming a commercial insurance broker, e.g. by joining companies like Aon, Willis, Marsh, etc. What are the must-haves (aside from the obvious, like people skills) and nice-to-haves, which are great but okay if I don't possess, of being a commercial insurance broker?

And can the duty of placing the insurance, and the duty of meeting & discussing w/ the client, be held by two separate positions?

And whats would be the most difficult aspect of the job? e.g. when dealing with carriers or clients about the terms of policy?

Greatly appreciate your thoughts!

 

[EugeneM]

must have is a book of business & Experience. Aon willis marsh are like top 5 brokers in the country. Unless you know someone they rarely hire fresh agents, at the same time doesnt hurt to shoot high and work your way down.

They normally have a marketing department, high value brokers like that dont spend time entering data, it would be a complete waste of their time.

Companies like that want established brokers that will just move all of their exisiting business.

There are lots of mid market brokerages that are more likely to hire newer agents.

 

[Markthebroker]

The overwhelming majority of producers that try, fail. So...You need to have experience selling an intangible product, and working with business owners. If you have that, then go work for a captive carrier for a year or two to get some experience in insurance, then we can talk.

 

[ryanjtw]

The overwhelming majority of producers that try, fail. So...You need to have experience selling an intangible product, and working with business owners. If you have that, then go work for a captive carrier for a year or two to get some experience in insurance, then we can talk.

must have is a book of business & Experience. Aon willis marsh are like top 5 brokers in the country. Unless you know someone they rarely hire fresh agents, at the same time doesnt hurt to shoot high and work your way down.

They normally have a marketing department, high value brokers like that dont spend time entering data, it would be a complete waste of their time.

Companies like that want established brokers that will just move all of their exisiting business.

There are lots of mid market brokerages that are more likely to hire newer agents.

Great thanks for your replies! The thing is they are hiring fresh graduates (outside US) where I live. So thats why I wish to know more about the qualities a broker should have.

 

[ryanjtw]

must have is a book of business & Experience. Aon willis marsh are like top 5 brokers in the country. Unless you know someone they rarely hire fresh agents, at the same time doesnt hurt to shoot high and work your way down.

They normally have a marketing department, high value brokers like that dont spend time entering data, it would be a complete waste of their time.

Companies like that want established brokers that will just move all of their exisiting business.

There are lots of mid market brokerages that are more likely to hire newer agents.

The overwhelming majority of producers that try, fail. So...You need to have experience selling an intangible product, and working with business owners. If you have that, then go work for a captive carrier for a year or two to get some experience in insurance, then we can talk.

But then I wonder what qualities would be nice-touch but not must-have for a being an insurance broker...

 

[Markthebroker]

But then I wonder what qualities would be nice-touch but not must-have for a being an insurance broker...

What would be a nice touch, but not a must have? That seems like a ridiculous question, so I will give you a ridiculous answer.

A nice touch, but not a must have would be a blue shirt. Buy a blue shirt. There you go. It's not a must-have, but it would be a nice touch.

 

[ryanjtw]

What would be a nice touch, but not a must have? That seems like a ridiculous question, so I will give you a ridiculous answer.

A nice touch, but not a must have would be a blue shirt. Buy a blue shirt. There you go. It's not a must-have, but it would be a nice touch.

lol great thanks for your reply tho
But how about personalities? like What weaknesses in personalities/skillsekts are acceptable as a broker? like can I be good broker if I suck at quantitative skills? and is it okay if I'm a indecisive person?

 

[BADTROUT]

lol great thanks for your reply tho
But how about personalities? like What weaknesses in personalities/skillsekts are acceptable as a broker? like can I be good broker if I suck at quantitative skills? and is it okay if I'm a indecisive person?

I hate to sound cynical, and sometimes the best lessons are hard ones so I'll bite. Quantitative skills, and decisiveness are pretty much compulsory when it comes to these positions, they also will not be hiring a broker, If anything, an intern, or a runner for snacks for the broker. I have worked commercial lines as a producer and a broker for 20 years and I would be sweating in an interview. NOT because I dont know what I am doing, but because the measure of expectation in a position like that is so high i would be nervous to get the job.

They may be hiring but what you are saying would be akin to Harvard posting a professor position on Craigslist with a come fill out an application on career day heading.

You cant be a doctor in a hospital without being a resident .. you cant go be Chairman of the Board at Smith Barney because you have a bank account either.

If you are overseas and you are being duped into thinking this is real, run, because you are likely going to end up being a part of a human trafficking scheme that convinces people they will work for AON and they end up serving kool aid on a compound in Jonestown French Guyana.

If I'm wrong put in a good word for me and @Markthebroker.

Oh and everyone knows that most powerful attire in business is blue pants (and candy) white shirt, red tie, sensible shoes and a cape.

 

[ryanjtw]

I hate to sound cynical, and sometimes the best lessons are hard ones so I'll bite. Quantitative skills, and decisiveness are pretty much compulsory when it comes to these positions, they also will not be hiring a broker, If anything, an intern, or a runner for snacks for the broker. I have worked commercial lines as a producer and a broker for 20 years and I would be sweating in an interview. NOT because I dont know what I am doing, but because the measure of expectation in a position like that is so high i would be nervous to get the job.

They may be hiring but what you are saying would be akin to Harvard posting a professor position on Craigslist with a come fill out an application on career day heading.

You cant be a doctor in a hospital without being a resident .. you cant go be Chairman of the Board at Smith Barney because you have a bank account either.

If you are overseas and you are being duped into thinking this is real, run, because you are likely going to end up being a part of a human trafficking scheme that convinces people they will work for AON and they end up serving kool aid on a compound in Jonestown French Guyana.

If I'm wrong put in a good word for me and @Markthebroker.

Oh and everyone knows that most powerful attire in business is blue pants (and candy) white shirt, red tie, sensible shoes and a cape.

Great thanks for your reply!
Decisiveness I can understand, since brokers need to decide the range of best packages for clients, and decide the terms for them.
But quantitative skills kinda surprised me...I thought any quantitative element in the whole process might be premium calculation, which are done by underwriters. Or perhaps coverage to fill the clients' insurance gap, but those should be simple calculations? Would you mind talk a bit more about which particular part of the job would require quantitative skills and what kind of quantitative skills?

And for concern of human trafficking...I'm a permanent resident there(I'm not from the US). And they hire fresh graduates to train them as brokers. So no worries mate

 

[BADTROUT]

Great thanks for your reply!
Decisiveness I can understand, since brokers need to decide the range of best packages for clients, and decide the terms for them.
But quantitative skills kinda surprised me...I thought any quantitative element in the whole process might be premium calculation, which are done by underwriters. Or perhaps coverage to fill the clients' insurance gap, but those should be simple calculations? Would you mind talk a bit more about which particular part of the job would require quantitative skills and what kind of quantitative skills?

And for concern of human trafficking...I'm a permanent resident there(I'm not from the US). And they hire fresh graduates to train them as brokers. So no worries mate

I think you are thinking calculation equals quantification... it is almost the opposite.

Quantification is the approximation of a subjective attribute, characteristic, or property of something or some process/phenomenon into numbers through an arbitrary scale.

How do I know that each cold call I make is going to net me $X per year diminishing by 10% each year for its 10 year lifecycle?

I take my average premium, my retention, my average call time, my closing ratio, my closing time, the number of calls it takes to get a lead, the number of leafd it takes to firm up an x date, the number if x dates it takes to get a quote proposal, the number of proposals it takes to get the present opportunity etc etc. I could literally quantify the entire system of acquiring a customer cultivated from a cold call.

That my kool aid drinking friend is quantification and the ability to do so is imperative when you are deciding if doing business with a client the size Aon or the like are going to pursue is going to be feasible and/or profitable.

Now I never had fancy school, but one thing I learned is to absorb that which I can from people who know... I also heard once some wise words on advice...

"Be careful whose advice you buy, but be patient with those who freely supply it as advice is a form of nostalgia and dispensing it is a way of fishing the past from the garbage, wiping it off painting over the ugly parts and recycling it for more than it's worth."