As is the case with most mandatory licensing it is a combination of risk mitigation by the state and barriers to entry by the incumbents. Existing insurance bro

As is the case with most mandatory licensing it is a combination of risk mitigation by the state and barriers to entry by the incumbents. Existing insurance brokers would like to maintain their turf so most that have a license are in favor of the requirements and the state can say it did the right things when something goes wrong and divert the blame to "cheaters" that bypassed the regulatory requirements. In an ideal world everyone would do the right thing, in the real world some level of bureaucracy and regulation is a necessity.