General insurance How Do Insurance Agents Make Money?

[kayode10]

Majority of the people are benefiting from various packages by the insurance companies.

Insurance companies give you the package that suits your lifestyle and the one that fits your income.

I got to know the beauty of an insurance when one of our neighbours house gutted with fire. The following day some people, the insurance agents, came to inspect the fire incident.

Three days after the incident everything has been restore back as it was in the house. Later we go to know that it was a insurance that came to repair everything destroyed by the fire.

Apparently the insurance company spend a lot of money to restore everything back to normal.

If this is how insurance companies are operate, I want to ask that how are Insurance Agents making money?

 

[Moni]

Insurance companies make money through your registration. Consider the number of people who register for insurance and most at times they renew every year or month. This generates them income that you will never expect.. Most people even register but will never get any benefit from it before they die.

 

[Good luck]

They make their money through the premium they get from customers and through the registration form that customer pay for.They really make good money because i have a friend in a mutual benefit insurance company and he is doing fine financially because most of the partner may not have any issues for years and premium will be paid monthly into the company account.

 

[Jamoflondon]

Insurance business alone is a kind of business that is kind of complicated to make money from. I think the client that employs the agent will be in care of the payment for the agent. Because an agent is almost like a self employed worker so the insurance company don’t get to pay the agent

 

[btaliat]

Just like betting, the probability of an event comes to fruition is slimmer compare to the probability of it not happening. There are some that have been paying premium since all these days and they have not benefitted from the insurance policy that they are under. So they make their money through unused premium.

 

[Nite]

An insurance agent earns high commission through the policy sold to you. In addition to that, there are also promised rewards that are paid over the commissions earned for the sales targets achieved by them. These rewards could be in any form, like a sponsored holiday, household things or even apparels.

 

[Mataracy]

I belive insurance company will always make there profit from the premium paid by those who took up policy. So since its not all those who take up the policy will be involved in accident at the same time. So therefore the premium paid to them can be use for business and make much profit from it.

 

[Mandy96]

Even without being told, you should know insurance agents makes their money from the clients that enroll them to give them the advice they need on the insurance plan they aspire for. And I think this is what really differentiate a broker from an agent. Because are enrolled for the clients based on the idea they need

 

[sincerem]

Errand they're going from house to house convincing people to get along with insurance company policy scheme its how they earn their own reward. Those earnings earn commission per referral they bring to the insurance company. And most of those agents are super talented when it comes to convincing people going into insurance.

 

[Mika]

Insurance agents make money from the commission on premiums paid by their clients. Let say, you are an agent, you lure me to buy an insurance policy. I pay $100 as a premium, now you will earn commission on this $100. How much you can earn depends on the company's policy but it is normally at least 10 percent.

 

[Wisdom01]

I think most insurance agents are paid commissions for bringing in a new customers ,and when the customers subscribe for a plan they are been rewarded with benefits ,it could be of any percentage depending on the percentage the insurance company is willing to offer for the job too I think

 

[sincerem]

Insurance agents make money from the commission on premiums paid by their clients. Let say, you are an agent, you lure me to buy an insurance policy. I pay $100 as a premium, now you will earn commission on this $100. How much you can earn depends on the company's policy but it is normally at least 10 percent.

Agents are making some reasonable amount of money provided they are convincing more andore people coming into insurance company to register for any given premium policy. Their reward us solely dependent on the referrals they bring to.the insurance company. When they failed to bring plenty, their revenue or commissions are affected.

 

[kayode10]

@Jamoflondon I think they make money from every referral to the company they are promoting. I was thinking maybe they will be earning salary along with the commission they get from the referring clients. Any insurance agents who wants to make more money will have to improve on his or her marketing skill.

 

[Alexandoy]

Our neighbor who is an insurance agent said selling life insurance is the best insurance for the agent. The agent has a commission on the premium that is paid every month. That means when a client buys an insurance for 20 years then you earn from that policy. Think if you have sold 20 policies then that can make you relax for the rest of the term of the premium payments.

 

[KingDaniel]

The primary way an insurance broker earns money is commissions and fees based on insurance policies sold. These commissions are typically a percentage based on the amount of annual premium the policy is sold for. ... Once earned, the premium is income for the insurance company.