Insurance Consultant vs. Agent: What Are the Differences?

Insurance is a vital part of protecting your finances and your family. When you’re ready to purchase a policy, you’ll work with either an insurance consultant or an insurance agent. These professionals can help you select the right coverage for your needs, but they differ in how they’re compensated and the services they provide.

In this article, we compare insurance consultants and agents, explaining the key differences between these two professions. We also provide tips on what to look for when choosing an insurance professional.

What is an Insurance Consultant?

Insurance Consultants work with clients to determine their insurance needs and risk factors. They help clients choose the right insurance policies to protect them from potential financial losses. Insurance Consultants also review existing policies to make sure they are still adequate and recommend changes if necessary. They keep abreast of industry changes and new insurance products so that they can advise clients on the best coverage for their needs. Insurance Consultants may work for insurance companies, independent agencies or brokerage firms.

What is an Agent?

Agents are typically employed by insurance companies to sell and service insurance policies. They carefully analyze each policy to ensure it’ll be profitable and beneficial for companies to utilize. Some Agents may work for consulting firms, government entities or pension companies handling their property, life, casualty and health insurance policies. Agents typically gather statistical data to analyze, then they present these findings to government officials, shareholders, executives or other clients. They often create and use charts or graphs to better explain their projections, calculations and new policy plans.

Insurance Consultant vs. Agent

Here are the main differences between an insurance consultant and an agent.

Job Duties

Insurance consultants and agents share some of their job duties. They both contact clients to discuss insurance needs, evaluate risk and determine coverage options. Insurance agents and consultants also research insurance policies from various companies and advise clients on the best coverage for their circumstances.

Insurance agents and consultants perform different duties based on their role in the industry. An agent represents one insurance company, selling policies to clients and providing customer service once a policy is purchased. An insurance consultant works for multiple insurance agencies, evaluating each company’s offerings before recommending one to a client.

Job Requirements

To become an insurance consultant, you need at least a bachelor’s degree in business administration, economics or another relevant field. You may also need to have several years of experience working in the insurance industry before you can be considered for a consultant role. To become an insurance agent, you only need a high school diploma, although some employers prefer candidates with some college experience. You will also need to complete a training program that is specific to your state.

Work Environment

Insurance agents work in a variety of environments, depending on the insurance company they represent. They may travel to different locations and meet with clients to discuss their needs and help them find the right insurance plan for their circumstances. Insurance agents often work full time during regular business hours but may also work overtime or weekends if necessary.

Insurance consultants typically work in an office environment where they can perform research and analyze data. They may spend most of their days sitting at a desk and typing on a computer. However, some insurance consultants may travel to visit clients and attend meetings with them.

Skills

There are several similarities in the skills used by insurance consultants and agents. Both need to be excellent communicators, as they need to explain complex insurance concepts to clients. They also both need to have strong people skills, as they will be working with clients one-on-one to discuss their needs and find the best insurance products for them.

However, there are some differences in the skills used by these two professionals. Insurance consultants typically need to have stronger research and analysis skills, as they often need to evaluate a client’s current insurance coverage and make recommendations for changes or additions. They also may need to have project management skills to coordinate the implementation of new insurance plans.

Insurance agents do not typically need to have as strong of research and analysis skills, as they typically only sell insurance products that have already been created. However, they do need to have strong sales skills to convince potential clients to purchase the products they are offering. They also need to be very organized, as they often manage multiple clients at one time.

Salary

Insurance agents earn an average salary of $57,493 per year, while insurance consultants earn an average salary of $72,306 per year. The average salary for both positions may vary depending on the type of insurance you sell, the company you work for and the state in which you work.