Broking
- Entry requirements
- What you might do
- Training and professional qualifications
- Rewards
- Prospects
- Useful links
Insurance brokers act as intermediaries between insurance companies and insurance buyers, advising prospective policyholders on the most suitable product for their needs, helping to manage and mitigate potential risks and arranging to put cover in place.
Faced with a vast choice of insurers and different types and prices of cover and policy, customers - both individuals and companies - need professional advice. Brokers use their wider knowledge and experience to assess a client's risk profile and find the appropriate cover.
Although they usually receive their commission from the insurance company, brokers are required to be client-focused and manage client relationships effectively. In larger firms, brokers may specialise in specific areas, while those in smaller organisations will carry out a broad range of functions.
Entry requirements
A degree in any subject is acceptable for entry into the profession, though those who have studied accounting finance, economics, management, mathematics or business may have an advantage. Some organisations also accept 'A' level or GNVQ holders for their trainee broker positions.
Personality and communication skills are particularly important. Brokers need to liaise with a wide range of people, assimilating and communicating information that is often complex and technical.
What you might do
Building and maintaining relationships with clients is a core element of the job, and as a trainee you are likely to become involved in scheduling and attending meetings, and discussing and assessing insurance needs with clients.
As well as researching policies and products, you will learn to analyse and collate information, keep records, prepare reports, negotiate with insurers, collect premiums and carry out general administrative tasks.
Broking is all about communication and - depending on the type of company you join - you will need to develop key relationships with underwriters, clients and other professionals. You may also become involved in marketing and acquiring new business.
Training and professional qualifications
Training programmes vary considerably, with larger broking firms offering more opportunities for structured training programmes. These typically involve job rotations for experience of different areas of work, over a period of 18 months to two years.
In the past many smaller broking firms either hired experienced brokers or relied on on-the-job training. While such coaching is still an important, there has been a growing emphasis in recent years on graduate-level recruitment and the development of graduate programmes in conjunction with the CII.
Most new entrants are now required to study for the professional examinations of the Chartered Insurance Institute (CII) ((link to relevant CII page)), which provides a structured framework leading to the professional designation of Chartered Insurance Broker. Many employers grant study time and provide help with tuition fees and the cost of learning materials.
Rewards
Typical starting salaries range from £15,000 - £23,000 and many companies offer performance-linked bonuses. After three to five years, you can expect to earn from £20,000 - £40,000, but remuneration depends largely on the size and nature of the company you join. At senior levels, salaries may go as high as £100,000.
Prospects
Ongoing career opportunities within this field reflect both the range in scale of broking firms and the increasingly international scope of industry. With a smaller firm you may pursue a rewarding local or regional career, while larger and international firms will enable you to take on national and international responsibilities.
Broking also provides a launchpad for a range of insurance-related careers. Many of those who now specialise in specific areas of insurance like marine, aviation, environment or energy, started their careers by training as insurance brokers.
Others move into management roles - managing a team of brokers or several branches of a brokers' company - or other functions within the industry, including underwriting, new business development, claims, or technical broking , or sales management.
Useful links
The British Insurance Brokers' Association (BIBA)
14 Bevis Marks, London EC3A 7NT
Tel: 0870 950 1790
www.biba.org.uk
Chartered Insurance Institute (CII)
42-48 High Road, South Woodford, London E18 2JP
Tel: 020 8989 8464
www.cii.co.uk
Financial Services Authority (FSA)
25 The North Colonnade, Canary Wharf, London E14 5HS
Tel: 020 7066 1000
www.fsa.gov.uk
Institute of Insurance Brokers
01933 410003
www.iib-uk.com
London Market Insurance Brokers' Committee
Tel: 020 7397 0216
www.lmbc.co.uk
