Insurance broking remains a robust career path — one of the few in Australia with a strong outlook for future job security. The current conversation around automation raises concerns for the employment sector; however, according to Hays, jobs like insurance broking remain in high demand and brokers are likely to be brought along with the changes.
So what can you expect to earn?
The average annual salary of an inexperienced insurance broker in Australia sits at $60,661. An entry-level job starts at around $50k as reported in the National Insurance Brokers Association, and there are many opportunities for remuneration and long-term career progression. At the top of the salary scale is an income of around $101,000, and Payscale found that many brokers end up expanding their careers to fields such as account managers, directors, business development managers and marketing managers.
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Average Australian earnings - Insurance Brokers
When pay increases aren’t possible for a given period, employers are increasingly providing incentives to keep staff satisfied. The Macquarie Institute’s 2016 Pursuing Sustainable Growth report, found that businesses with a high-profit turnaround used ‘non-salary benefits such as flexible working arrangements’ and career development training as approaches to hold onto their employees.
Insurance brokers also make money on commissions, when a sale is made between the broker and the client. The premium varies depending on the type of insurance being sold. Sometimes, brokers will also charge a fee, the cost of which is dependent on the level of complexity of the insurance policy. So, on top of your salary, you are likely to earn extra on fees and commissions.
An attitude for success
The key qualities of financially successful insurance brokers are frequently referred to by professionals as having a hard-working attitude, genuine desire to help people, people skills and dedication to the profession as a long-term career. If you think that you meet these attributes, insurance broking is well worth considering over other traditional career pathways such as financial advising or business management.
Make it on your own
Featured in the Insurance Business Hot List, John Elliot is the CEO of Elliot Group. Mr Elliot launched the business at the age of 26 and today it is one of Australia’s leading insurance broking companies. This is an example of how hard work and an entrepreneurial spirit can really project your earning capacities as far as you are willing to take them.
Bear in mind however that insurance broking is unique within the world of finance because of its customer focus. You really do need to have a genuine desire to help people and a strong sense of empathy and emotional awareness. While there is a strong potential for a stable and lucrative career path in broking, the most important factor is the relationships you build with your clients, as you strive towards putting their financial stability first.