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What is an Insurance Consultant?

Malcolm Tatum
Updated May 16, 2024
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Insurance consultants are professionals who specialize in assisting businesses and individuals in assessing their insurance needs and creating an insurance plan that will meet those needs. In terms of the business world, an insurance consultant may help a business or corporation develop health and life insurance plans for employees as well as assess the types of corporate insurance coverage needed to create a viable risk management coverage program. For individuals, an insurance consultant can often help identify programs that will assist with health and life insurance coverage as well as assist in evaluating and securing insurance related to specific needs such as travel.

To become an insurance consultant, it is often necessary to comply with the same regulations in place locally for insurance agents. This can include obtaining a valid license to broker insurance policies of different types. By requiring a licensing process, local jurisdictions can ensure that the quality of the consulting will allow clients to be acquainted with vital information that could affect their decision in regard to various insurance packages and programs.

An insurance consultant is usually compensated in one of two ways. One option is known as fee-based or fee-only. This option allows the consultant to collect a one-time fixed fee for his or her services. There is no percentage commission made from the sale, nor any type of ongoing commission generated as long as the policy or policies are in effect. Once the fee is paid, the consultant can focus on other clients and projects.

Commission-based compensation is the second option employed by insurance consultants. This model allows the consultant to collect compensation based on a percentage of the total value of the insurance package that is purchased by the client. In some cases, the consultant will continue to collect a small commission for as long as the coverage is in force.

The ultimate goal of an insurance consultant is to make sure the client receives the highest quality of insurance coverage for the most reasonable outlay in premiums. This often means balancing the insurance needs of the client with the amount of insurance premiums the client can reasonably afford to pay. While an insurance consultant can choose to take on individual and corporate clients, it is more common for the consultant to focus on the business sector or the private sector when seeking new clients.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Malcolm Tatum
By Malcolm Tatum , Writer
Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing to become a full-time freelance writer. He has contributed articles to a variety of print and online publications, including SmartCapitalMind, and his work has also been featured in poetry collections, devotional anthologies, and newspapers. When not writing, Malcolm enjoys collecting vinyl records, following minor league baseball, and cycling.

Discussion Comments

By anon275900 — On Jun 20, 2012

I was in the insurance industry for over 30 years. I started as a young girl in a one man shop making coffee, filing papers, completing forms where the prospective client could not read or write very well. I worked in insurance companies as a rater, claims clerk, commercial insurance underwriter, agency manager, owned my own agency.

I now want to be strictly and only a consultant to business owners, not selling or recommending agents or companies for purchase. I gave up all of my licenses in the state of Arizona for personal reasons. As a consultant and not an insurance agent. I want to help clients save money and place these savings elsewhere.

After complete review, I find that there is no need for an agent's license since I will not be selling or recommending agents or companies for insurance.

By anon199230 — On Jul 22, 2011

an insurance broker/agent is an insurance consultant - one who holds a valid insurance licenses such as P&C, L&H, etc., and they are required to be licensed by the state they operate.

In addition, a so-called insurance consultant who is not licensed or does not possess technical knowledge should not be advising clients. DOI considers this to be transacting without a license and is a misdemeanor (california).

By anon115969 — On Oct 05, 2010

An insurance consultant must have vast knowledge of insurance but may not act as an agent and or a broker as well as acting as an insurance company. An insurance consultant must only help customers with their insurance requirements: provide advice!

By anon44128 — On Sep 04, 2009

Would someone that is assisting an agent with preparing paperwork for a prospect or sold group be considered an insurance consultant? There would be no advice on benefits in this scenario.

By anon25638 — On Feb 01, 2009

I would like to start my own business as an insurance consultant to include: helping individuals under there medical bills when the come in the mail, not over paying or paying when the insurance company is suppose to.

So i guess my question is, is that considered an insurance consultant?

Could I make a living working for myself opposed to being a broker and advocating on another entity's product?

Malcolm Tatum

Malcolm Tatum


Malcolm Tatum, a former teleconferencing industry professional, followed his passion for trivia, research, and writing...
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