You need to (at a fundamental level at least) understand chords. You don’t necessarily need to be able to identify them by ear as this is a difficult, advanced method, but you should understand them, and how they are constructed, and what different chords sound like.
Experiment making your own MAJOR and MINOR chords:
Start here for a simple explanation on chords from Musictheory.net:
http://www.musictheory.net/lessons/40
Great examples of CHORD QUALITIES!
http://www.gmajormusictheory.org/Listening/chords/chords.html
You should also be familiar with CHORD / TRIAD INVERSIONS - the concept. You don’t necessarily need to identify them by ear, but it is good to know.