If you are looking for ways to earn more money and meet your expenses in order to live a good life, you may have a lot of ideas running through your head about what to do or how to make extra money. Even if you already have a job and want to supplement your income, becoming an insurance agent is one of the best options.
Let's look at How to Become an Insurance Agent and the qualifications or training needed to become insurance agent.
Who Exactly Is An Insurance Agent?
An insurance agent represents insurance companies and serves as a client's insurance advisor. Insurance agents help customers find the right policies and other insurance needs by educating them on their options and answering their questions.
Insurance Agent Types
Internal Insurance Sales Agent
A full-time on-board employee of an insurance company is referred to as an internal insurance sales agent. They work for a specific company and only sell their policies.
Captive Insurance Agent
A captive insurance agent is an agent who works solely to sell the insurance products of one insurance company.
Independent Broker/Point of Sales
A POSP, or point of sale person, is an IRDAI-approved insurance agent who can offer the customer a variety of policies from various insurance companies. POSP has an IRDAI-affiliated license code that allows it to work with multiple insurance companies and sell multiple insurance policies to clients at the same time.
How To Become An Insurance Agent?
Those interested in becoming insurance agents must register online through the IRDAI (Insurance Regulatory and Development Authority in India) portal, or in today's world, one can easily reach out to insurance companies and register online through their websites. They can also approach an insurance aggregator if they want to have a diverse range of products and companies. For example, if someone wants to become an insurance POS advisor for an insurance aggregator, he or she can approach the company by visiting their website or their Partner Registration page; all you will need to do is enter a few details and the company will contact you right away.
The entire training and licensing process can be completed in a matter of days. The insurance registration process necessitates the submission of certain documents and formalities, after which you are finished. You will also be required to complete a 15-hour online training course before sitting for an IRDAI insurance agent exam, and all of this is provided at no cost.
Even the IRDAI website provides study materials for agents/POSP to help them understand what it takes to become an insurance agent/POSP. English, Marathi, Guajarati, Hindi, Kannada, Malayalam, Tamil, Bengali, Telugu, and Punjabi are among the languages supported by the study materials. There are also links to corporate agents, the Insurance Institute of India portal, FAQs, and other resources on the site.
Becoming an insurance agent/POSP can be a lucrative and stress-free job for many people. It is possible to work from home and set your own hours without being tied to a desk and a 9 to 5 job. Working as an insurance or POS advisor can benefit retirees, stay-at-home mothers, and others looking to supplement their income.
What Is The Role Of An Insurance Agent?
Before we go any further into how to become an insurance agent/POS, it's important to understand what an insurance agent's job entails.
An insurance agent is someone who works for an insurance company or an insurance aggregator and assists in the sale of insurance products to customers. An insurance agent assists people in selecting and purchasing the appropriate type of insurance for their needs. An insurance advisor/agent deals with a variety of insurance products, including auto insurance, life insurance, travel insurance, health insurance, general insurance, and home insurance.
Becoming a POS (Insurance Advisor) entails selling insurance to individuals as well as families, most likely to people you know personally, such as friends, family, and relatives. Insurance advisors can also sell products to corporations and businesses that require multiple policies, group policies, and so on.
An insurance agent with strong networking skills as well as a strong sales and business mind can earn a good living while working flexible hours from home. Some agents are compensated through commissions on sales (income would depend upon the number and value of policies sold). Agents who work for an insurance company are paid a salary plus bonuses if they meet their sales targets. Some businesses also provide clerical assistance or other resources to their agents.
Who Is Eligible To Work As An Insurance Agent?
According to IRDAI guidelines, anyone interested in becoming an insurance agent must meet the following requirements:
- A bachelor's degree is required for an Insurance Agent/POS (graduate). Someone who has dropped out of school but has significant sales talent and experience may also be able to become an agent. As a result, having a 10th pass is the bare minimum for becoming an insurance agent.
- Required documents include proof of identity, required exam certificates, proof of address, a copy of the PAN card, and photos in the prescribed format.
- To obtain a license to sell insurance, an individual must first complete a training program. The number of hours of training required varies depending on the type of insurance the individual intends to deal in; for example, the duration of training for life insurance may differ from that required for other types of insurance. The length of training also varies depending on whether the individual is renewing a license or applying for a new license. Some businesses also provide on-the-job training to their agents.
Eligibility Requirements To Become An Insurance Agent
To become an insurance agent, the applicant must meet the following basic requirements:
The applicant must have completed the 10th grade.
Must be at least 18 years old.
One must be certified by an Insurance Regulatory and Development Authority of India (IRDAI).
Every state requires an insurance license. According to the state's regulations, one must pass a state-level exam in order to obtain a license.
Log on to the insurance provider's website of choice, look for the insurance agent application, and submit your basic information as requested.
To become an insurance agent, you must first complete the IRDAI's basic training. Training can take place either offline or online. The training will last 15 hours and can be completed in two to three days. Following completion, the applicant will be given a certificate.
Once the applicant has completed the training, they must pass a pre-licensing exam. The exam format is objective in nature, with a minimum score of 17 out of 50 required to pass.
Obtaining the License
The qualified candidate is granted a license by the Insurance Regulatory and Development Authority of India (IRDAI), which allows them to begin working as a certified insurance agent.
Documents Needed To Become A Licensed Insurance Agent
When registering to become an insurance agent, you must submit a few documents in addition to the registration form. It is always preferable to have the documents ready before registering. The following is a list of documents that the website will require:
- Identification proof (Aadhar card, Driving License, Voter ID card etc.)
- Address verification
- Personal Identification Number (PAN)
- A passport-sized photograph
- Certificates of academic achievement
Salary Of An Insurance Agent and Job Growth
There are primarily three types of salary structures for insurance agents:
- Basic Salary
- Base salary plus bonus- The bonus is given either yearly or when the company/agency meets the set goal.
- Salary plus commission- Commission is the most commonly used remuneration format in the insurance industry. The insurance agent commission is paid based on the number of insurance policies sold and the risk covered, as well as factors such as whether the policies are new or renewed.
Insurance Agent - Roles & Responsibilities
- The insurance agent must keep an eye on the market for potential client networks and identify, filter, and gather customer details in order to pitch the insurance product and circulate the name by self-advertising about the best PoSP insurance company in the market.
- An insurance agent assists the insurance company in the sale of the policy and assists the customer in selecting the appropriate insurance plan. They must obtain and serve the customer throughout the process of purchasing, renewing, and claiming an insurance policy.
- They should be fine because of the insurance products they sell to customers. Customer satisfaction is essential for any policy sale, and the procedure should be simple and straightforward, with no hidden costs or discrepancies in the benefits of the policy purchased.
Licensing Of Insurance Agents
To become a certified insurance agent, one must obtain a license from India's Insurance Regulatory and Development Authority (IRDAI). This is obtained by passing the mandatory exam, namely the IRDAI IC 38 pre-recruitment qualifying exam.
Code Of Ethics For Insurance Agents
There are some do's and don'ts that an insurance agent must adhere to in order to be a responsible professional-
- At the first meeting, introduce yourself and the insurance company with which you are affiliated.
- Always keep your IRDAI license on hand and be prepared to show it when asked.
- It is a violation of the code of conduct to sell insurance or deal with any client for policy-related procedures if you do not have a valid license.
- Never mislead or conceal any policy-related information from the customer. When advising them, always be truthful and provide complete details.
How To Become An Effective Insurance Agent?
It is always a good idea to keep your skills up to date with current market conditions. Here are a few pointers to help you become a great insurance agent:
Find Common Grounds
Because insurance is a more personal experience, how you communicate with the prospective client in the first few minutes of the conversation can determine whether or not you have broken the ice. Make them interested in what you have to say to build your pitch.
Keep Up with the News
Knowing the policies isn't always enough. To be extraordinary, you must be aware of what is going on in the news and how it may affect your business and your client's product preferences. Being aware of the news can reward you by allowing you to be the first to tap the client with these options.
Use Marketing Tools
Follow the trend and begin exploring and engaging in marketing methods. Send your clients the e-brochure, share the most recent policy update that saves more subscription fee, and forward the website link where they can learn more about the policy if they want.
Becoming an insurance agent is no different than starting any other business. To become a powerful force, you must learn the intricacies of the trade and hone your skills. As an insurance agent, you set your own goals and work at your own pace to achieve them. As an insurance agent, you can assist people in creating a financially secure future for themselves and their loved ones. At the same time, you establish yourself as a top-tier insurance agent in India.