How Much Do Insurance Consultants Make In Tennessee, US?
THE BENEFITS OF BECOMING AN AGENT
Last Updated: February 3, 2022
With the rising insurance industry, you must be curious about how much do insurance consultants make. Similarly, in the insurance industry, people have shown keen interest to become insurance agent in Tennessee. Prospects must understand the importance of becoming an agent and what they will contribute to their agencies.
Who is an Insurance Agent in Tennessee?Â
An insurance agent is a representative associated with a single insurance company or multiple insurance companies. The job of an insurance agent is to sell policies of related agencies and maintain a strong relationship with clients.
Further, there are two types of agents: Captive agents and Independent agents. Captive agents represent a single agency, whereas an independent insurance agent represents multiple agencies. Captive agents can only sell a single insurance line while independent agents can select whichever insurance lines they prefer to sell.  The insurance lines consist of personal lines and commercial lines such as home insurance, auto insurance, cyber insurance, and so on.
How Much Do Insurance Consultants Make As An Independent insurance Agent?Â
According to Small Business Risk Report published by Hanover Insurance Group, 72% of the total small business owners accepted that an agent’s advice is pivotal to their insurance purchase decisions. Customers usually find an agent to seek expert advice while purchasing insurance as they are unsure about which one would be the best for them. As an insurance broker, you will play a crucial role in helping customers get the right insurance.
In May 2020, the Bureau of Labor Statistics reported the median yearly wage for a US-based independent insurance agent to be $52,180. The wage was over $125,000 for agents belonging to the top ten percent of the highest-earning agents. Therefore, successful agents can easily earn a higher earning. Additionally, commissions earned from renewed policies create a source of passive income. But, to earn renewal commissions, you need to build up the agency.
Starting An Independent Insurance Agency Will Influence How Much Do Insurance Consultants Make
Some of the popular ways to start an insurance agency are:
How Much Do Insurance Consultants Make Depends On Book of businessÂ
This is the first option. Buying a business book from an established insurance brokerage is a good place to start. It usually comes at the price of around $250,000 to $500,000, or higher. The price depends on the profitability of the book of business. It’s almost like owning a sole proprietorship.
Is the agency model the answer for an independent agent?
Agency models aid your independent agency in many ways. Agents can exclusively focus on selling while the agency takes care of the operational activities. This option is similar to the first one but allows more flexibility. Agents can further choose which model they want: The Franchise Model or FMO Model.
Additionally, you might also be interested to explore how does insurance sales commission work.
