Requirements to be an Insurance Broker: Courses, Exam and MORE

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Through this article the Requirements to be an Insurance Broker, which is a profession that has evolved over time, and provides the opportunity to have a profession to practice independently.

Keep reading, as we also have information on the exam to be an Insurance Broker, the validation of the title, differences between an insurance agent and an Insurance Broker, etc.

What are the requirements to be an insurance broker?

If you want to be an Insurance Broker, it is essential to comply with the Requirements to be an Insurance Broker. There are courses which are approved through the General Directorate of Insurance and Pension Funds. These courses give the opportunity to obtain the Title of Insurance Mediator.

To enter these courses, the interested party is normally required to have the Higher bachelor’s degree or something similar. The courses are offered and dictated by the Insurance Mediation Associations of each Autonomous Community. In some cases they can be done in universities and then carry out the revalidation of the training carried out.

The course is called Group A Insurance Mediator Title. Which is a general title where clear training is obtained about insurance companies, products and economic matters. Its duration is at least 500 hours.

Acquiring a title like the one mentioned above is an indispensable point and one of the Requirements to be an Insurance Broker, or manage your own brokerage. This with the aim of having independence with respect to the financial part.

Another Alternative to Being an Insurance Broker

Another way is the one reflected in the Royal Decree 764/2020 about insurance intermediation. Where it says that it is possible to pass an aptitude test. It is done with a formal test, where the interested party prepares on their own.

Although it is not advisable to present the test, since it is complicated and it is also easier for it to be passed at the end of the course, instead of taking the exam. It will also depend on the preparation and effort that the person puts in to approve it.

In Royal Decree 764/2010 in its Article 10, the terms of Accreditation of the Necessary Knowledge To take the exam, and in turn in Article 12, the Contents and duration of the previously named training course are developed.

Courses to be an Insurance Broker

The training process is divided into three specific parts. Each of the groups has a specific duration, as well as particular knowledge to be obtained. It should be noted that they also change depending on the place you want to get to. The groups are mentioned below:

  • The Group A Course: Has a period of duration of five hundred (500) hours. Which gives the ideal qualification to be an Insurance Broker. It is essential to have a bachelor’s degree to enter it. Obtaining this title can work independently in an Insurance Brokerage, be a bank and insurance operator, or a related representative. It is the best alternative in the case of setting up an Insurance Brokerage.
  • Group B Course: The duration time is at least 250 hours, where as minimum 200 must be of a formative nature. All training related to the field of insurance and all its elements is acquired. Taking this course, you can work as an insurance agent in an insurance company as a special worker. Or also as a worker in an Insurance Brokerage, granting advice or as an intermediary.
  • The Group C Course: It is generally the easiest course in relation to the previous ones. Lasts fifty (50) hours, and there you get basic information about what the area is as such. You can work as an external support in an Insurance Brokerage, or be an employee of an insurance company. Constantly, the activities will be as auxiliary, since the knowledge is elementary.

To obtain information about the Insurance Brokerage you can enter this web portal, where you will find information of interest.

Exam to be an Insurance Broker

It refers to a test that is carried out to acquire the title of Insurance Broker or intermediary. Said test which is applied for Group A, contains a large number of questions. Through them, you can clearly see if you have the necessary knowledge about the insurance area.

It is very important to study hard and to prepare for the test. Through the web many model exams are obtained, and in this way have a guide of what the questions will be like. When taking the Insurance Broker course, you have the support of knowledgeable professors.

Preparing and studying is essential, since the test is not easy. Especially if you have never had a relationship in the insurance area, since you must learn new terminologies. An insurance intermediary must be able to carry out commercial agreements, give advice, in addition to carrying out administrative activities.

Validation of the Title

The validation of the Title as an Insurance Broker is done through the General Directorate of Insurance, in the event that it is required. The qualifications that can be validated are those of Bachelor of Law or Economics. It is important to note that there is currently no degree as a graduate.

In the case of having a bachelor’s degree, it is suggested to contact the General Directorate of Insurance. There they give information if in any specific case the validation of the title can or cannot be done in exchange for one of the Insurance Broker. If you can’t, you should take the Insurance Broker test, in conjunction with a given course.

If you are an Insurance Agent with the title of Intermediary B, you can validate the title of Insurance Broker. However, on this occasion, certain requirements must be obeyed. A special agent has the title of Intermediary B, so already has part of the necessary pensum as Intermediary A.

Now if you want to achieve the title of Insurance Broker, you must talk at the Training Center. Where they will clearly inform the steps to follow to acquire it. It should be considered that an average of five hundred (500) working hours is required. therefore, the hours that have been validated with a previous title are reviewed.

Differences between Being an Insurance Broker and Being an Insurance Agent

Knowing the Requirements to be a Public Broker, is a support to know the differences between an Insurance Agent and an Insurance Broker. Possibly different names have been heard.

In the case of professionalizing in this field, it is probably not known what the differences are between these two terms and with which one the person identifies more. The differences are as follows:

  • Insurance Agents are those mediators between clients and insurers. It has a connection, an agreement with the entity it represents (the insurance company), so they have privileges with it.
  • Insurance Brokers are also mediators between clients and insurers, however, they differ in that they are autonomous people and that they are not connected to a specific insurer. They must also comply with a regulation and obey some specific requirements, with the aim of acquiring permission for that.
  • In conclusion, the difference between the two is the autonomy that exists to work with a single insurer or with several.

What is it?

An Insurance Broker is a person of a legal nature or physical that acts as a mediator of private insurance, without having an agreement with insurance entities. Likewise, they provide independent, quality and fair advice to people who wish to arrange insurance to pay for the dangers to which they are prone.

There are others Requirements to be an Insurance Broker. By acquiring the title as Group A Insurance mediator, you are in a position to record the other requirements to obtain administrative permission. The first step is to show a file with a project.

Said project is presented at the Agency Supervisor, and it is the members of this department who decide whether to approve it or not. Now, the file is a very important element, therefore, you must be careful so that it is of quality and approved. The documents required are the following:

  • Letters of Commitment: They are those issued by the insurers and are those that express the approval of the project.
  • Processes and Regulations Manual: It must be elaborated several of these for different departments (a Manual, Training, one for Claims and Complaints, one for Customer Service, etc.).
  • The Mandatory CR Policy: A proposal must be submitted on this matter, or a financial guarantee that allows covering all future operations as required by Law.
  • A Business Plan: It is also known as an Activity Plan, and it is a report showing the entire project. Here is highlighted what you want to do and the feasibility that it has in the commercial, business and economic part is substantiated. It is convenient to have an orientation or a clear idea of ​​each documentation to be able to do it properly. Otherwise, there is a risk that they are incomplete and do not grant authorization.

We already show you the Requirements to be an Insurance Broker, now the next thing is to start the plan so that you enter to study this profession.

Taking into account all the steps to follow and with determination, the goal set can be achieved. If you are here it is because you want to improve yourself, to practice a profession that will give you both professional and personal satisfaction.

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