How To Become An Insurance Broker In South Africa

If you are looking for an information about how to become an insurance broker in south Africa, then you are at the right place. Enjoy..

An insurance broker is a professional who acts as an intermediary between a consumer and an insurance company, helping the former find a policy that best suits their needs.

What Does An Insurance Broker Do?

Insurance brokers are skilled specialists in insurance and risk management solutions who assist individuals and businesses in finding insurance plans that best fit their customers’ needs.

They may specialize in a particular type of insurance or deal with a variety of them, such as home, life, or health insurance. Insurance brokers must be well-versed and articulate in order to explain complex insurance jargon to clients, regardless of the type of insurance they offer.

Can anyone be an insurance broker?

A VET qualification is normally required to become an insurance broker. Furthermore, before to become an independent broker, several years of experience with a qualified broker are normally required. Entry into these courses often needs a Year 12 diploma and, at the very least, work with an insurance brokerage.

Who licenses the insurance broker?

The principal officer has the necessary qualifications, has passed the Brokers exam, and has received the necessary training. The company hires at least two people who have the necessary qualifications and training. It has the necessary infrastructure and trained personnel to run the insurance brokerage company.

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Do you need a degree to sell insurance?

A college degree is not required to become an insurance agent; some agents only have a high school diploma. A bachelor’s degree in a business-related discipline, on the other hand, can prepare you for a job in insurance. “They might think about recruiting a high school graduate with sales experience.”

 The table below profiles basic insurance broker requirements.

Education Required High school diploma; bachelor’s degree is preferred
Education Field of Study Business, finance, economics, insurance
Key Skills Customer service, interpersonal communication, initiative, persuasion
Licensure/Certification Licensure is required to sell insurance policies in the state in which the broker works; certification is voluntary
Job Growth (2016-2026) 10% (for all insurance sales agents)*
Median Salary (2018) R 764722.76(for all insurance sales agents)*

Below are steps to Become A Insurance Broker In South Africa

Step 1: Earn a Bachelor’s Degree

Although it is not needed, having a bachelor’s degree on your CV may improve your chances of landing a job with an insurance brokerage firm. Finance, accounting, business law, and marketing are all covered in degree programs in business administration or economics.

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Step 2: Add an Internship to Your Insurance Broker Training

Some bachelor’s degree programs in insurance and risk management provide internships with insurance companies. During an internship, you will watch and participate in the firm’s internal activities. Following the completion of the program, you may be required to produce a written report explaining the experience, while the business delivers a written review to your instructor.

Step 3: Obtain an Insurance Broker License

A broker’s license is required in each state where you intend to work. Life, personal, property, and casualty insurance licenses are all accessible.

Broker’s licenses and agent’s licenses are distinct, yet you can still have an agent’s license and work for companies as an agent as a broker. Some jurisdictions are abandoning the two types of licenses in favor of requiring all agents and brokers to get a producer’s license.

Step 4: Find a Job

You might expect to begin your career at a brokerage firm either at the customer service desk or as a broker’s assistant.

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As you gain experience in the industry and your employer’s business practices, you can advance to the positions of customer service representative (processes insurance transactions under supervision), personal lines representative (provides detailed coverage for personal belongings and homes), and commercial line representative (commercial and business insurance).

Step 5: Obtain Insurance Broker Certification

Consider certification in an area of insurance where you have experience for professional development and career progress. The National Alliance for Insurance Education and Research provides several voluntary certifications for independent agents and brokers. These are the Certified Insurance Counselor (CIC), Certified Insurance Service Representative (CISR), and Certified Risk Manager (CRM) (CRM).

Educational Requirements to Become An Insurance Broker South Africa

Graduates from universities may be interested in applying for a graduate training plan. Graduate trainees are hired at a higher level and are typically awarded a permanent position at the end of their training program.

How do I get my insurance broker license in South Africa ?

Fees and Documentation

Before applying for a broker’s license, you must submit an application along with the necessary papers, including proof of completion of an approved relicensing course. In addition, most states need you to have a qualifying or sponsoring company appointment or job proof.

How much does it cost to start an insurance company in South Africa?

The current minimum capital requirements for a long-term insurer/reinsurer are ZAR10 million and ZAR5 million for a short-term insurer/reinsurer.

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