Insurance is one of the oldest commission sales industries
Selling insurance on commission has been a viable career path for decades. It is one of the few industries where independent agents can build genuinely passive income through trailing commissions that pay for years after the initial sale.
In Australia, the insurance market is large and growing, with both personal and commercial segments offering opportunities for commission agents.
What types of insurance can you sell?
The main categories are:
General insurance. This includes business insurance, public liability, professional indemnity, property insurance, and motor vehicle insurance. General insurance is typically sold on annual policies with commissions paid at each renewal.
Life insurance and income protection. These products have longer terms and often pay higher upfront commissions plus trailing commissions for the life of the policy. They require additional licensing.
Health insurance. Private health insurance sales are more regulated but can offer decent commissions through authorised distribution channels.
Licensing requirements
In Australia, selling insurance generally requires an Australian Financial Services Licence (AFSL) or authorisation under someone else's AFSL. The specific requirements depend on what type of insurance you sell.
For general insurance, you can often operate as an authorised representative under a licensed broker or agency. For life insurance and financial products, you will need to meet additional training and compliance requirements under ASIC regulations.
Before you start, research the specific licensing requirements for the products you want to sell. The ASIC website has detailed information on what is required.
Building your client book
Insurance sales rewards long term relationship building. Your goal is to become the trusted insurance advisor for your clients, handling all their insurance needs.
Start with your personal network. Everyone needs insurance, so there is no shortage of potential clients. As you build expertise, ask for referrals and expand into business insurance where the policies are larger and the commissions are higher.
Why trailing commissions matter
The real wealth in insurance sales comes from trailing commissions. When a client renews their policy each year, you earn a percentage without doing any new selling. Build a book of 200 to 300 clients and the trailing commissions alone can provide a substantial income.
The long game
Insurance sales is not a get rich quick opportunity. The first year is typically the hardest as you build knowledge, earn certifications, and develop your client base. But agents who stick with it for three to five years often find themselves earning well into six figures with a growing book of recurring income.