Career-changers: How to switch to insurance

To switch into insurance from another industry, you pass a state licensing exam in your chosen line of authority, clear a background check, and apply for your license: most career-changers complete the process in two to three months. From there, your existing people, sales, and organizational skills do the heavy lifting.

Becoming an insurance agent is a popular route for those interested in switching careers to pursue a client-facing role and improve their earning potential. Unlike other professional industries with high barriers to entry, insurance offers accessible career paths open to those willing to take licensing exams, invest in skill development, and dedicate themselves to the profession.

Whether you’re switching from a completely unrelated industry or considering adding insurance licenses to your portfolio as a financial professional, you will find many dynamic career and personal opportunities within this exciting field.

Why is insurance a great industry for career changers?

Insurance is a popular choice for individuals looking to enter a new industry because requirements tend to be flexible. What’s more important in insurance are your people skills, financial acumen, and personal management abilities, rather than your credentials alone. Professionals enter insurance from diverse educational and career backgrounds, and the skills developed in many industries translate well to insurance sales.

The insurance agent career path: Flexible background and requirements

One of the main reasons the insurance industry is so attractive to a diverse array of professionals is that there are virtually no strict educational requirements. In general, insurance agent or producer (another word for “insurance sales agent”) listings at insurance companies will require:

• A bachelor’s degree, though this is not always a requirement for those with years of work experience
• A completed prelicensing course with a certificate, if your state requires it
• A state insurance license, obtained by taking a state-administered exam
• A background check completed as part of the licensing process

There are typically no requirements regarding the area of study for insurance agents. However, a background in finance, economics, or insurance policy can help better prepare you for your role. If you’re coming to insurance with a completely different educational or career area, it may be worth taking a few related classes at a local college or online to establish a solid foundation.

Importantly, while entry-level insurance jobs have fewer requirements than others, there are still vital skills and abilities that employers emphasize. These include:

• Communication and interpersonal skills: The ability to interact with clients in a professional, engaging manner
• Administrative: Clear evidence that an agent will be able to stay organized with appointments, coverage options, and sensitive client information
• Sales and negotiation: A demonstrated background in meeting goals or closing important deals, or experience that would translate well
• Entrepreneurship: A proven track record of or interest in innovation and creativity, whether it be through starting a business or helping a company succeed in its financial goals
• Analytical and technical skills: The ability to properly enter and organize information, analyze quantitative and financial data, and explore tech-forward efficiency tools
• Knowledge of insurance products and policies: Passing the state licensing test helps communicate to future employers that you are aware of the kinds of coverage, national and state regulations, and ethical business practices

If you’re comfortable speaking on the phone, regularly meeting with clients, managing large spreadsheets, and staying up-to-date with new office tools and software, then you’ve already got a solid grounding for an insurance career. While some early-career agents come with backgrounds that align well with insurance roles, such as finance or customer service, other professionals should consider how their prior experience will help prepare them for this new path.

Transferable skills examples

• Office manager → insurance agent: Emphasize organizational and administrative skills, as well as interest in adopting and learning management software.
• Retail worker → insurance agent: Focus on customer experience, earned commissions, communication skills, and meeting or exceeding sales goals.
• Healthcare worker → insurance agent: Point to patient interactions, problem-solving, and experience with insurance claims and processing.
• Data entry or quantitative analyst → insurance agent: Show that you have the “number crunching” abilities to take unstructured data and turn it into actionable insights, a core skill for agents finding the right coverage for clients based on income and other factors.

When in doubt, take a look at the skills emphasized in the job listings for insurance agents and producers and write down how you applied those same skills in previous employment.

Insurance agent salaries: A lucrative field for dedicated professionals

According to the Bureau of Labor Statistics, insurance sales agents earned an average annual salary of around $85,000 in May 2025. Geography can make a huge difference in earnings: in higher-paying states, average salaries often exceed $100,000. The insurance agent’s salary reflects both base pay and the opportunity to earn commissions through sales, greatly benefiting agents adept at closing deals.

Enhancing existing wealth management licenses

Many financial professionals, such as wealth managers who hold licenses such as the Series 6 license, the Series 7 license, the CERTIFIED FINANCIAL PLANNER® certification, or related accounting certificates, will often choose to pursue insurance licenses. Carrying both finance and accounting certifications alongside an insurance license allows professionals to offer a broader suite of products:

• Financial advisors can help answer client questions about insurance and direct them to make smart financial decisions
• Securities agents can recommend coverage options that best protect their clients’ assets
• Financial planners can provide guidance on how clients can protect themselves in the present and plan for the future

Life insurance licenses, for example, are commonly held by financial professionals who specialize in annuities, allowing clients to weigh their options for long-term planning. While adding insurance licenses to existing certifications is not necessarily a “career switch,” doing so provides financial planners with more opportunities to support clients.

Working for an agency vs starting your own business

There are two main kinds of insurance agents:

• Captive agents, who work directly for an insurance company
• Independent agents, who either work for an independent agency or work for themselves

The benefit of working as a captive agent, especially as someone new to insurance, is that you’re provided with institutional support and are usually guaranteed a base salary in addition to earning commissions. Independent agents often forgo base salaries, electing instead to make commissions their primary source of income or to use their license as part of a broader wealth management role. They may be independently contracted by a company or have agreements with several companies. The main upside of being an independent agent is that you have a larger selection of coverage options to choose from, as you are often not tied down to selling a single company’s insurance products.

Entrepreneurial agents interested in establishing their own companies and building their own client lists can pursue an independent path, while professionals seeking more structure should consider becoming a captive agent. In many cases, agents begin their insurance careers with companies and eventually become independent producers once they’ve built up their skills, reputation, and a solid client base.

How to become an insurance agent

Getting started on becoming an insurance agent can take time, but the process itself is manageable. Here’s the basic path you’ll follow:

1. Review your state’s licensing requirements: Most states require you to be at least 18, pass a background check, and complete a pre-licensing course (usually 20 to 40 hours, taken online or in-person) to qualify for the insurance license exam. Note that you do not need to be licensed in your state of residence, and that you can become licensed in multiple states through reciprocity.
2. Select your line of authority: Decide which type of insurance you want to sell, such as life and health or property and casualty, and focus your study efforts to prepare for that specific insurance license exam.
3. Register for your test: Each state and U.S. territory administers its own insurance license exam. You can find instructions for your insurance license application on your state’s board of insurance website. Insurance exams are offered at test centers nationwide, and many states allow you to take them remotely at home with the proper setup.
4. Pass the licensing exam: The passing score varies by state and line but is typically 70% (some states differ: for example, California uses 60% for producer exams), so check your state board for the exact threshold. A solid study plan improves your odds; nationally, roughly 50-60% of applicants succeed on their first attempt.
5. Apply for your state license: Submit your exam results, fingerprints, and licensing fee.
6. Start your insurance career: Join a captive agency or plan to launch your independent practice.

By following these steps, you’ll be fully prepared for the insurance license exam and have a clear understanding of how to become an insurance agent.

Insurance licensing 101

Now that you know the basics of obtaining your insurance license and moving forward with your career, it’s time to decide which type or types of insurance you’re interested in pursuing. Insurance has distinct specialties, often called “lines,” that you can choose to focus on. Here’s a quick overview:

• Life insurance: Offers coverage like death benefits, savings products, annuities, and other long-term savings options.
• Health: Encompasses medical coverage, disability insurance, and long-term care, all geared to protecting everyday and future health needs.
• Property: Focuses on safeguarding homes, businesses, or personal assets from damage or loss.
• Casualty: Protects against liabilities such as car accidents or third-party claims.
• Personal lines: An umbrella term for insurance that protects individuals against property and liability losses. Provides important coverage through home, auto, and other everyday personal policies.

Each insurance line requires specialized knowledge and typically a unique license, so you can pursue the niche that interests you most or start with a broader focus. All states offer a variety of insurance licenses, including the five categories mentioned above. Most states also offer combined licenses for popular insurance pairings, such as the Life and Health or Property and Casualty insurance license, which cover content from both lines and require only one exam, offering a streamlined path to licensure and specialization.

How long does it take to become an insurance agent?

In general, expect to spend between two and three months obtaining your license. This timeframe includes:

• Researching state exams and requirements
• Completing any prelicensing qualifications, if necessary
• Studying for the exam (try to allocate at least a few weeks to a month for preparation)
• Taking the exam and waiting for your results
• Sending and processing your fingerprints and background check

After you complete your licensing requirements, you will also need to account for the time it will take to be hired at an agency or establish your own company if you choose to go the independent route. Insurance can be a competitive industry, though there is always demand for talented and committed sales agents who can help steer individuals to the right coverage options.

What career changers should know

The insurance industry is filled with opportunities for hard-working professionals looking to enter a dynamic field. It’s important to be aware of what an insurance agent does, what typical job responsibilities look like for those starting out, and what counts as ambitious but realistic expectations.

Your first year as an agent

Insurance agents connect clients with the best coverage options to protect their car, home, other property, and health, helping them achieve peace of mind and avoid future financial stress. They do much more than just sell policies: they make insurance clear and accessible for clients, helping them navigate their options and choose coverage that matches their unique needs.

The first year can be both challenging and exciting: expect a learning curve in maintaining client relationships, closing sales, and staying up to date on insurance products, financial trends, and other important developments. Your first year on the job will include a lot of lead generation (developing your client list), research, cold-calling new clients, making appointments and taking meetings, marketing your or your company’s services, gathering the information underwriters need to set policy terms, and completing organizational and administrative tasks. As in other industries, staying up to date with and adopting AI-powered tools for research, sales, and other tasks will be important to succeeding in the modern world of insurance.

As an insurance agent, you balance sales with supporting clients by answering questions and providing expert help after a claim. Agents are responsible for recommending the right auto, homeowner’s, or commercial policy to clients, and helping them recover losses after an accident or emergency. Being successful means enjoying conversations and working with people, solving real-life problems, and building trusted relationships. With time, your ability to deliver outstanding service can set you apart in this rewarding field.

Opportunities in insurance

Once you’re in, here’s how to make becoming an insurance agent work:

• Start close to home: If you’re learning how to become an insurance agent, begin by offering policies to friends, family, or neighbors to establish your skills and gain experience. If you’re going the independent route, consider beginning your agent career part-time until you have a solid client list.
• Build connections: Successful insurance agents thrive on networking. Connect with other insurance professionals online or attend local agent meetings to pick up insider tips and generate more leads as you advance along your path.
• Use tools: Leverage digital resources, such as insurance-focused websites, AI-powered client relationship management (CRM) and other efficiency tools, and social media marketing, to expand your reach as you build your insurance agent career.
• Move into commercial lines: Once you feel confident managing personal policies, consider transitioning from personal lines to commercial insurance. This transition is a key milestone in becoming an insurance agent with broader expertise, as you’ll start covering businesses and accessing larger policies and commissions.

A common path is to begin with personal line training and supplement it with the licenses needed to handle commercial coverage, a natural next step for growing as an agent or an insurance business. Finding an insurance specialty or niche is also a great way to develop a loyal client base and distinguish yourself from other agents.

What to look out for

Becoming an insurance agent offers a lot of great opportunities overall, but it should also come with some planning ahead:

• If you feel you need extra guidance, start off at an insurance firm before moving on to independent sales
• Expect your first year to include many hours of cold-calling, lead generation, and client relationship management, all skills that get better over time
• Manage your expectations around commissions. Many agents do not begin making significant commission income until a few years into their careers.
• If you are planning to start your own business, set aside at least six months to a year in savings as a cushion.

Consider your first year as an agent a learning experience in which you will become more adept at client meetings, financial advising, negotiations, and customer acquisition. While the start may seem slow, remember that you are building a long-term career that becomes more secure and stable as your client base grows. Taking a measured and sustainable approach, even if it potentially means lower earnings at the start, will help you avoid burnout and improve your long-term prospects.

Preparing for your licensing exam

Studying for a licensing exam in a new field can seem intimidating, especially if you have not taken a standardized test in many years. Here are some tried-and-true study tips:

1. Seek out high-quality insurance exam study materials. Even if your state requires a prelicensing course, taking time to invest in additional study tools that pinpoint exactly what you need to know for the test can greatly improve your chances of passing.
2. Develop effective study strategies. Practice with realistic questions and full-length practice exams, and review both general and state-specific content.
3. Find a study system that works well for busy professionals, allowing you to keep your preparation flexible while still managing your time effectively.
4. Track your progress throughout the process. The best review is an active review: focus on areas you struggle with rather than content you already know.

Keeping a consistent, well-organized study schedule can help you reduce your test anxiety and achieve your licensing goals in less time.

Top insurance carriers to work for

The insurance industry is filled with titans: major companies with recognizable names that command significant market share and serve millions of customers. Some of the top insurance companies to work for, based on national rankings and employee reviews, include:

• Progressive: Specializes in auto, home, and other property and casualty insurance, with an emphasis on employee growth and satisfaction.
• Nationwide: Offers a wide range of personal and commercial coverage options, along with committed training programs for new employees.
• MetLife: Provides life, health, and related coverage, along with comprehensive benefits for its employees.
• Elevance Health: Serves companies and individuals as one of the largest healthcare companies in the country. Provides employees with professional development and technical support resources.
• Chubb: Offers a wide variety of coverage options as one of the oldest insurance companies in the U.S. and is known for its generous employee benefits and flexibility.

The field also includes smaller but well-established regional or niche companies that serve specific areas or provide specialized coverage. These companies may offer more personalized employee support, so they’re also worth exploring during your job search. Take time to look through Glassdoor or another employee review site to find out which companies best fit your priorities as an employee, and explore their options for both directly employed captive agents and independent contractors.

Frequently asked questions

How difficult is the insurance licensing exam?

Insurance licensing exams, regardless of line, are designed to be moderately challenging yet accessible. These multiple-choice exams are very policy- and terminology-heavy and include some math questions that must be answered without a calculator, so it’s important to focus on both conceptual and quantitative aspects of the content.

Here’s an example question that illustrates what you’re likely to see on the test:

Which of the following losses would be covered under the liability section of a Personal Auto Policy (PAP)?

1. Bodily injury to a pedestrian struck by the insured’s vehicle
2. Bodily injury to the insured driver after an accident
3. Intentional wreckage caused by the insured to another person’s car
4. Damage to the insured’s car after hitting a pole

The answer is: A. Bodily injury to a pedestrian struck by the insured’s vehicle. A test-taker must recognize that liability coverage protects the insured from loss when an accident causes harm to another person or their property. This is different from the insured’s own losses, which are handled by first-party coverages, i.e., collision or comprehensive for the insured’s vehicle, and medical payments or PIP for the insured’s own injuries.

Is it better to be a captive or an independent agent?

The question of whether it is “better” to be a captive or independent agent depends on your short- and long-term goals as a producer. If you’re looking for a more structured path and more immediate financial stability, the captive route is a better option. Working at an established insurance company usually means that you’ll have a steady income, benefits, and proper training to get you a strong footing in the industry.

One drawback to being a captive agent is that your sales are restricted to a single company’s offerings, which means that you may miss out on a wider range of coverage options that could better meet a client’s needs. Another downside to pursuing the captive route is the expected difficulty of applying to jobs as an entry-level employee with little to no experience. It may take time to secure your first full-time role, which is why developing connections within the industry and completing your licensing before applying gives you a huge leg up.

Becoming an independent agent gives you a more direct path to insurance sales: once you’re licensed, you contract directly with one or more carriers rather than working for a single company, so you can begin selling. You also have more flexibility in what you can sell, allowing you to become a one-stop shop for a variety of insurance providers and products. Less restrictive commission structures mean you can potentially earn more than a captive agent, especially as your business grows.

However, if you do not have an established list of clients or connections, it will be very difficult to begin your business from scratch. Make sure you have a smart marketing and outreach strategy to maximize your chances of staying afloat. If you’re going solo, save up enough to cover 6-12 months in living expenses, and keep in mind any additional costs to opening your own business.

How much can you make selling insurance part-time?

Some who are making the switch to insurance may become part-time independent agents as they get their business off the ground. Part-time agents can expect to make anywhere between $10,000 and $30,000 a year, depending on the number of hours they put in, though top-performing agents can earn salaries commensurate with full-time workers.

Which insurance careers make the most money?

Life insurance agents generally earn higher salaries than producers in other lines, partly because they often serve high-net-worth clients with a focus on future financial planning. Agents specialized in commercial insurance, such as company healthcare plans, property and casualty coverage for businesses, or related services, also tend to earn more. Identifying a particular product niche or target clientele helps an agent stand out and build a loyal customer base. That said, working with individual clients and families can provide immense career satisfaction for those who want to meet people’s needs directly.

How do I find out licensing requirements in my state?

Insurance requirements can be found on your state’s insurance board and through trusted online resources, like the National Insurance Producer Registry (NIPR) or Achievable’s state licensing database. Your state’s insurance board website will always have the most up-to-date information.

As a financial professional, what benefits are there to obtaining an insurance license?

One popular licensing combination is pairing an advisory or securities sales license, such as the Series 7, with an insurance producer license. Holding this type of dual license as a financial advisor enhances your ability to fully serve clients, allowing you to offer both a full suite of investment products and a wide range of insurance solutions.

Insurance licenses expand your practice, enabling you to address a range of wealth management needs, from growth strategies to financial protection. The need for insurance solutions often coincides with pivotal financial milestones, such as new home purchases, life insurance planning, or the design of effective retirement income strategies. Holding a dual license positions you as a trusted advisor who can offer holistic advice while diversifying your revenue and maximizing your earning potential.

Other career pathways in insurance

Besides becoming a sales agent, professionals interested in insurance may decide to pursue careers as:

• Insurance brokers: Intermediaries who represent clients rather than insurance companies
• Underwriters: Analyze risk profiles and determine the terms of a client’s policy
• Adjusters: Investigate claims, make necessary changes, and ensure that insured parties are paid fairly
• Actuaries: Use advanced mathematics and statistics to assess long-term financial risk

Agents and brokers are most alike in terms of earning potential and qualifications, with both professions requiring the completion of state-administered exams. Underwriters and adjusters may have lower average salaries, but they are common roles people use to get a foot in the door of the industry. Becoming an actuary is a very lucrative option, but it is a technical pathway that often requires advanced schooling. Sales agent roles are a great way to break into the field, develop strong interpersonal skills, and build a strong career in the industry.

Conclusion

Career switchers are often looking for roles that better fit their skills and interests and offer strong earning potential. Insurance is a great field for anyone who is looking to expand their horizons and move toward more client-facing work. While becoming certified as an agent takes time, it’s a great path for entrepreneurial, innovative individuals who enjoy problem-solving, working with people, and having each workday look a little different from the previous. With a smart career strategy, you can complete your requirements, build trust, boost client retention, and attract new opportunities.