How to become an Insurance Broker in Australia
Insurance Brokers are trained and licensed financial advisers, working on behalf of their clients to provide professional advice on which insurance policies and products best suit their specific needs. They help individuals and businesses identify and assess risks and determine which assets should be insured. Insurance Brokers have access to a wide range of insurance products and have connections with a large number of insurance companies, enabling them to find and recommend suitable cover for many different clients.
An Insurance Broker will help their clients determine what level and type of insurance is needed, as well as providing information about the policy and advice regarding any special conditions or situations that must be addressed. Insurance Brokers use their knowledge of the costs, exclusions and benefits of relevant policies to arrange the best and most suitable outcome for their clients. Their role also extends to arranging for the placement of cover with the chosen insurer as well as acting on behalf of their clients in the event of a claim.
Are you organised, methodical and great at research? Do you want to use your skills in negotiation and communication to help people gain peace of mind and the best cover they can get? Here are some of the steps you will need to take to become an Insurance Broker.
Step 1: Complete a Certificate III.
To become an Insurance Broker in Australia, you will first need to complete a Certificate III in Insurance Broking with an accredited education institute. There are a number of providers that offer this course so be sure to do your research to confirm that the course you undertake complies with the Australian Securities and Investments Commission (ASIC) Regulatory Guide 146. This course will give you a foundational education regarding the insurance market, financial and legal environments and the code of conduct which applies to the insurance industry.
Step 2: Obtain your diploma.
The next step on your journey to a career as an Insurance Broker is to undertake the Diploma of Insurance Broking. This qualification will give you a greater understanding of the fundamentals of insurance broking and advice as well as teaching you about client relationships, risks and complex client needs. Completing this diploma course is one of the key requirements to gaining your Australian Financial Services Licence (AFSL) and will give you the tools you need to start applying for entry-level jobs with a licensed Insurance Broker.
Step 3: Gain experience.
Now that you have a grasp of the responsibilities and what is involved in insurance broking, you can begin to gain experience in the field. Before you can obtain your Australian Financial Services Licence (AFSL), you will need to undertake a period of work experience under the supervision of a licensed Insurance Broker. This can be done as a traineeship, internship or as work experience and must be documented for your AFS licence application.
Step 4: Get your licence and gain certification.
The final step is to apply for your Australian Financial Services Licence (AFSL) and become a fully-fledged Insurance Broker. The Australian Securities and Investments Commission has a number of requirements for registration and they differ depending on the type of insurance you wish to work with. Be sure to research the specific provisions and conditions relevant to you in order to ensure your eligibility before you apply. Another thing you may wish to consider is membership with one of the insurance broking associations in Australia, such as NIBA. These organisations can give you many benefits, such as resources and networking connections that can be extremely useful for a newly licensed Insurance Broker.
What does an Insurance Broker do?
Insurance Brokers act on behalf of businesses or individuals as intermediaries between their clients and insurance companies. They provide advice on available insurance products and facilitate coverage based on the individual needs of each client. An Insurance Broker helps their clients to identify risks and assess which assets should be covered, what type of insurance is suitable and the level of cover needed. They use their extensive contacts to find and arrange customised insurance packages from a large number of insurance companies. Insurance Brokers are licensed to give advice on applicable benefits, costs and exclusions, negotiate premiums and explain conditions and special circumstances that are applicable to each client. In addition to advising and arranging cover, an Insurance Broker will also act on their clients’ behalf in the event that any insurance claims are made.
- Assessing clients assets and insurance needs.
- Advising clients on insurance risks and benefits.
- Researching appropriate insurance products.
- Liaising with various insurance companies.
- Managing and facilitating cover for individuals and businesses.
- Providing information on costs, exclusions and details of different insurance products.
- Acting on behalf of clients in the event of a claim.
Skills for Success
To be successful, an Insurance Broker needs to be dedicated and great with research and numbers. They need to be great negotiators, decisive and driven to arrange the best and most cost-effective solution for their client. Insurance Brokers need to be organised and efficient, great problem-solvers and meticulously detail oriented. They must be trustworthy, have great communication skills and be passionate about helping people achieve peace of mind.
- Passionate and determined to help people.
- Good with research and numbers.
- Methodical and organised.
- Excellent communication skills.
- Great negotiating abilities.
- Detail oriented and meticulous.
- Strong problem-solving skills.
How much do Insurance Brokers earn in Australia? In Australia, the average Insurance Broker earns around $60,476 per year. This varies greatly depending on a number of factors and is intended as a reference only, from Payscale 04/18