POSP Insurance Agent
A POSP insurance agent is the mediator between the individual
acquiring the insurance and the insurance company. He/she is responsible for selling the
insurance policies as per the specified requirement of the client.
The insurance agent is a representative of an insurance company
offering services to a prospect client or someone who seeks insurance. Acting as a legal
representative, the agent is responsible for providing essential information and guiding
the client about the policy.
Types of Insurance Agents
The insurance industry is vast. Understanding the insurance
industry is no child's play. And, hence, the insurance agency hires insurance agents
who, as a specialist, help the clients fulfill their requirements. Currently, there are
two types of insurance agents.
- Independent Insurance Agent
- Captive Insurance Agents
Independent Insurance Agents: They cater to various insurance
companies and therefore hold the right to sell insurance of any insurance company.
Captive Insurance Agents: They work for a specific insurance
company. That could be in the form of commission or retention basis.
Currently, we offer following types of insurance agents programs.
What is a POSP Insurance Agent?
POSP stands for Point of Sales Person wherein the insurance agent
can sell directly to the clients. The agent is not restricted to sell one insurance only
i.e. he can sell life and general insurance both simultaneously.
Generally, an insurance agent is authorized to sell only a
certain type of insurance. But, in the case of a POSP, the agent can sell many or all
types of insurance policies. This gives him the leverage to expand his avenues rather
than being restricted. The agent can enroll himself with insurance service associations
and start a flourishing career as a POSP.
Who can Become a POSP Insurance Agent?
Anyone can enroll for this you need to be 18 years of age and
have minimum education qualification. Also, the POSP needs to be of Indian origin with a
valid AADHAR and Pan Card that shall be optimized for verification purpose. He/ She will
procure an IRDA certification along with the required training for selling insurance.
What Are The Benefits Of Being A POSP Insurance Agent?
A POSP can offer his/her services to anyone at any time who could be his prospect
client. The advantage of being a POSP is that he does not require any prior investment
to be a registered POSP. Apart from this, a POSP enjoys a stable income and can cater to
anyone and everyone. The POSP insurance agent is someone who is a trustworthy person.
Hence, he has the privilege to focus on forward selling processes that includes selling
other insurance products to the same client whilst creating new business leads as well.
The insurance industry is open for individuals from all walks of life to be associated
with them as an insurance agent such as housewives, retired individuals, self-employed,
students, financial consultants etc.
Benefits of Becoming a POS Insurance Agent for Housewives
A report that states more than 52% of insurance agents are females with 45+ years of
age. The number itself signifies the importance of women insurance agents, mainly
housewives. This is also one of the most preferred professions by them as it gives
them the flexibility and space to work at their convenience. This is because women
have the exceptional quality of convincing. As a homemaker, it is a part of their
daily life to socialize and meet people, giving it an edge to keep up with the
situation and thus sell the required insurance. They hold an instinctive value of
understanding the case and catering to the emotional quotient of the surrounding.
Moreover, the trust factor also is comparatively high. Selling insurance includes
trust, experience and knowledge. Housewives as a matter of fact come across various
scenarios in their day to day life which makes it easier and relevant to convince
the client. For instance, a housewife could relate an insurance policy to a recent
event in her/ or customers' real life. In true terms, they can assess the situation
to put it across in a microscopic manner compared to any other. They hold the upper
hand of sharing concerns with others and addressing them too.
Being a POS insurance agent is a stable career as they can focus without leaving
their present responsibilities and stay committed to their career as well. They can
be financially independent.
Benefits of Becoming an Insurance Agent for Retired
Retirement is the time when an individual looks forward to stepping into a new phase
of life, fulfilling his unachieved goals. Being an insurance agent can help him fund
his dreams with a desired lifestyle. Having said that, a retired individual comes
with an enriching experience that anyone would like to rejoice. His experience can
help him in securing the life of others. In addition, a retired personnel has over
the year built a lot of trust and connections which he can now be his corpus.
Also, retiring after years of work makes the personnel feel low on morale, while an
active profession can act as a cover for his own source of income and
simultaneously, build a business opportunity. Being an insurance agent can be a
full-time career as one can plan its targets and work out of his own schedule from
the heart of his home.
Benefits of Becoming an Insurance Agent for Self-employed
A self employed person in general strives for a fixed source of income. Based on his
current profession, he/ she has the advantage to convert his existing leads and
redeem the benefits by selling insurance. As an insurance agent, the self-employed
individual can earn extra income whilst being in his current occupation. Since he is
already a part of a specific sector it becomes easier for him to leverage his
contacts and build a strong relationship with the client. It also adds feathers to
his business associating his name with leading brands from the insurance sector.
- Additional source of Income
- Professional association with the leading brand
- Leverage your existing network
- Get recognized across Regional, National & Global forums
Benefits of Becoming an Insurance Agent for Students
A student struggles for his pocket money and is still aspiring to fulfill his needs.
In such a situation, being an insurance agent adds a benefit to his financial
requirements as well as his future prospects in the career.
Benefits of Becoming an Insurance Agent for Financial Consultants
A financial consultant holds a certain reputation in society. To him, adding another
source of income is not a big deal but definitely gives him that extra leverage. The
agent gets an opportunity to expand his portfolio bringing financial stability to
the client as well. Moreover, it also adds into his personal growth and
self-development.
Role of Insurance Agent
The role of an
insurance agent is primarily to sell insurance. The agent identifies,
analyses and accordingly suggests the policy to the client. The main criteria of an
insurance agent is to sales opportunities by offering clients services related to
insurance. The agent has to
- Understand the clients requirement
- Offer the policy maintaining transparency
- Give the client a walk-through of the insurance policy
- Process the documentations
- Follow-up for premiums and ad-on benefits if any in the following years
- Settle claims
Additional Rights & Duties of Insurance Agent
- To get compensation
- To get support from insurance companies
- To have product knowledge
- Access to marketing collaterals
What are the Mandates for Becoming an Insurance Agent?
An Insurance agent does not require exceptional degrees or certification but does
require focus and determination. The main criteria to become an insurance agent is
- 18 years of age
- Minimum Education Qualification of HSC
- IRDA Certification
- Specific Hours of Training as mentioned by IRDA
How is an Insurance Agent Trained?
An insurance agent training occurs in the following steps:
- An RM is appointed once you register with Choice Connect
- Offer the policy maintaining transparency
- A formal training is given in regards to the industry know-how
- Product knowledge is given as and when a new launch takes place
Traditional Way of Becoming an Insurance Agent
Formerly, insurance agents used to operate through limited resources as the
transactions were physical, making it a tedious process. As they were the only point
of contact, the agent's knowledge was the only reliable source. The traditional way
of selling came with a one-sided approach.
The traditional way of becoming a POS insurance agent is by complying with an
insurance agent and catering to that. In most cases, a traditional method is to part
with an insurance company and sell their products only. A traditional insurance POS
agent would concentrate on selling a product rather than building a relationship.
But times have changed. The digitisation has taken over and the universe of the
internet has created an awareness in terms of providing solutions. The many
questions that are asked today are
- Which is the best insurance company/ agent
- Which policy can one buy
- What does the policy include
- Should i buy from an agent or the company directly
- What are the policy rates
The customer is well researched and to some extent also knows what they want. In such
a situation, one has to attain confidence by imparting their experience. The
experience one gains is through knowledge.
The other question is how you market the product. A marketing collateral facilitates
recognition of the product. At Choice Connect, we provide training and marketing
collateral to all our CBA( Choice Business Associates) thus making them a 360 degree
solution provider and an expert in the industry.
How much Insurance Agent can Earn in India
There is no such barrier or restriction to earnings as an insurance agent. It totally
depends on the potential of the individual. The agent receives a commission on the
policy sold.
Difference Between Insurance Agent and Insurance Broker
An insurance agent represents the insurance company and the broker represents the
client. While the broker has a client- centric approach, he/ she needs an agent to
complete the sales. Thus, the broker is a binder in the entire process between the
client and the agent.
The insurance agent can have an association with multiple insurance companies and
therefore, receives a commission against a policy, once sold. However, a broker can
ask for price quotes from the agent or an insurance company and has to function
accordingly.
Whether an insurance agent or a broker both need to be certified or authorized as a
business agent to operate.
