How to become insurance broker

How To Become a Broker

LEVEL I BROKER: “ACTING UNDER SUPERVISION”

All individuals must meet the “qualifications” outlined in Section 5 of Ontario Regulation 991 of the RIB Act. This includes, but is not limited to:

• First passing the Entry Level examination or its Equivalency;
• Satisfying the “only business or employment” requirement;
• Registering for a RIBO license
• Employment with a RIBO registered general insurance brokerage firm. Employment (sponsorship) is not required to write the examination but is a requirement for registration.

Individuals who pass the examination, but do not register with a RIBO registered firm to receive their license MAY NOT hold themselves out or act in the capacity of a broker. Doing so will result in the file being reviewed by the Qualification and Registration Committee and may jeopardize eligibility for licensing.

Registration must be completed within twelve (12) months from the date of successful completion of the examination. If registration does not occur within twelve (12) months, the applicant will be required to write the examination again. We regret there are no extensions.

Once registered, all licensed insurance brokers must comply with RIBO .

 Regardless of the initial date of registration, the license term is October 1st to September 30th.

LEVEL 2 BROKER: “UNRESTRICTED LICENSE”

All RIBO licensees must, subject to the bylaws, meet the following requirements to have the restriction removed:

• Acted as a Broker and been registered with RIBO for a period of two (2) years.
• Passed both the Unrestricted Technical and Unrestricted Management exams. Passed the Unrestricted Management exam within three years of successfully passing the Unrestricted Technical exam.

Out of province licensees who hold similar qualifications as a RIBO Level 2 Broker please see the Equivalency Page .

Becoming an insurance broker is a rewarding yet challenging career choice. It's a great career for someone who likes working with both consumers and businesses. It's a career that you can easily pursue from the comfort of your home since most of your contact with consumers and businesses will be online or on the telephone. To be successful in this career, create a system that you will follow daily.

1. Set up your home office. One of the biggest problems with working from home is the distractions from television, family, the refrigerator, pets and everything else you prefer doing instead of working. In a traditional job, the environment helps to get you focused on getting the work done. Bring a similar environment into your home to make sure that you are productive. An office will also come in handy if you choose to have clients visit you for meetings.

2. Choose a specialty. Insurance brokers can deal with as many types of insurances as they choose, but becoming an expert in health, life, home, auto or complementary insurance will make you the "go to" broker in the field, and therefore make you more competitive. You can even break down your specialty into a niche, such as group benefits, long-term care insurance or employee protection insurance. You can always branch out later.

3. Network with insurance companies. Building relationships with insurance companies allows you the flexibility of negotiating the best deals and packages for your clients. Brokers have the choice of working as an independent broker, which allows you to create options for your clients from multiple insurance companies, or working with a single insurance company, which only lets you choose from the plans that a particular insurance company offers.

4. Continue to educate yourself. Attend seminars and conferences that will allow you to network with other insurance specialists. You can learn from the practices of others to improve your business. Read trade journals and industry news to stay up to date on what's happening in the insurance industry.

5. Ask for referrals. The best marketing for your business is the word of mouth your satisfied clients will spread to promote your business. The U.S. Department of Labor's Bureau of Labor Statistics Handbook says, "Insurance sales agents also obtain many new accounts through referrals, so it is important that they maintain regular contact with their clients to ensure that the client's financial needs are being met." A recommendation from a friend or family member is more powerful than a commercial jingle.

6. Adhere to state licensing requirements. Most states require insurance brokers to be licensed before legally selling insurance. They may also require you to continue your education and possibly retake exams and get new certifications every couple of years. Contact your state's department of insurance to learn about its requirements.

7. Use your relationship-building skills as a selling tool. Insurance is notoriously hard to sell. Comedians even use insurance sales as punchlines to jokes. Your prospects know the importance of having insurance but often don't consider it as important as paying bills that will immediately impact them. The hard sell won't work. The consumer in the "information age" is more likely to respond to advice and counseling than to a sales pitch.

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