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Why Should an Insurance Agent Get a Property and Casualty License?

Why Should an Insurance Agent Get a Property and Casualty License?

It's no secret that selling insurance is a lucrative profession. Building an insurance business is also a challenging prospect with an element of risk involved. Novice clients struggle to write enough policies to survive financially. The competition is fierce and success depends on building a repeat business.

Multi-line insurance agents are the best because they offer customers many types of insurance. For example, when agents are restricted to a single line of insurance, such as life insurance, they become vulnerable to competitors because their clients have to talk to other insurance agents who may also offer life insurance. Why not have the ability to handle all of your clients' insurance needs? There is no better way to keep your customers out of the competition.

Additionally, multi-line agents are moving forward for more customers. Insurance sales are a numbers game, and the agents who get more "on the bat" write more policies. A comprehensive insurance agent can deal with customers interested in all types of insurance and then sell other lines. The licensing of property and casualty insurance offers one of the best opportunities to maximize the "bat." Most people need to have some type of property and casualty insurance, either for their home or for their cars.

A P&C license qualifies agents to sell a variety of types of policies:

  • Car insurance.
  • Home insurance.
  • Flood prevention.
  • Earthquake insurance.
  • Comprehensive civil liability insurance.
  • Workers' compensation insurance.
  • Commercial automobile insurance.
  • Commercial liability insurance.
  • Commercial real estate insurance.

Property, accident and residual income insurance

Property and casualty insurance policies also provide a source of residual income. For example, auto policies pay additional fees when they are renewed. Building a portfolio of auto policies provides monthly income in the future, providing additional income and a safety net during recessions.

Cross-selling possibilities

A multi-line insurance agent can also discuss other insurance needs with property and casualty clients, such as life and health insurance. This opens up the opportunity for cross-selling and is one of the most effective ways to create a business book. Most people have little or no life insurance. Knowledgeable insurance agents who know the facts can identify their clients' needs, explain how much life insurance they should receive, and help them adjust their premiums to their budget. When a life insurance policy is sold in addition to a property and casualty policy, the agent benefits through a larger life insurance commission and another property and casualty policy to accumulate residual income.

Obtaining a P&C license takes a little extra effort

Each state has its own licensing standards, but most follow a very similar process. Many states have contracts with Prometric, PSI, or Pearson Vue to administer the licensing exams. Once agents are licensed, they must take a continuing education course every two years.

Many insurance agents make the mistake of selling only one line of insurance. This limits their potential income and makes them vulnerable to losing customers to competing insurance agents selling multiple lines. Effective agents can also use their multi-line sales capabilities to save clients money on their total insurance spend. A P&C license provides a golden opportunity for insurance agents who want to build a multi-line business. Most people should have property and casualty insurance, and seeing a review of their personal accident insurance coverage opens the door to other insurance options that are valuable to the client and pay profitable commissions.