Roles and Responsibilities
An insurance consultant provides analysis and recommendations to clients regarding their insurance needs. They focus on providing objective advice and typically work for a specific company, which means they have a more direct relationship with clients. Their responsibilities include conducting research on industry trends and developments to identify potential risks, negotiating rates with companies, explaining coverage terms to help clients choose policies, and having a thorough understanding of different policies to offer guidance on complex issues. Consultants help businesses identify risks and choose policies to cover liabilities, such as advising a factory owner on mandatory insurance. They assist with renewals, changes, and cancellations, verify claims and policy details, and provide management recommendations. Essential qualifications include a business degree and insurance coursework.
Key Differences Between Consultants and Producers
An insurance consultant works for an insurance company, studying and evaluating client needs to match them with the insurance plan that suits their requirements and finances, and verifies customer data and performs research. A consultant’s primary job is to provide information on insurance options, discuss fees, help set up contracts, assess risks, and recommend solutions to safeguard clients.
An insurance producer, on the other hand, sells and services insurance policies. Unlike consultants, producers are independent contractors interested in making a sale, playing a role by helping spread risk, and cross-selling products.
Common Terms
What is another name for a producer in insurance?
An insurance producer can also be known as an insurance agent or insurance broker, depending on their specific role and the types of policies they sell.