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Insurance Agent Meaning

Insurance Agent Meaning

A person who works for an insurance business and sells the company's insurance products is called an Insurance Agent. As per the Cambridge Dictionary, the insurance agent meaning is referred to as “a company or a professional who sells and gives advice about insurance for an insurance company or a number of insurance companies.” Along with the salary of insurance agent, an insurance industry pays an insurance agent a commission or incentive based on sales.

POSP/POS Insurance Agents Meaning

The insurance regulatory and development authority of India (IRDAI) which is in charge of all insurance-related activity in the country, has lately 2015 devised a unique technique to ensure that every person of India has access to insurance coverage through the POSP Program. The term POSP refers to a salesperson who works as a point of sale.

PoS (Point of Sale) Insurance Agent

The PoS agent can now sell basic insurance products thanks to IRDAI. The goal is to boost the country's insurance penetration. IRDAI has given a definition of the POSP Insurance Agent Meaning as the agents who can sell simple insurance products that don't require much underwriting.

Examples -

  • Vehicle Insurance
  • Travel Insurance
  • Personal Accidental Insurance

POSP (Point of Sales Person)

POSP is an abbreviation for Point of Sale Person. A POSP is essentially an insurance salesperson who is authorized to offer insurance plans to consumers directly.

Types of Insurance Agent

In India, there are two types of insurance agents:

Life Insurance Agents

Life Insurance covers all areas of a person's finances for the rest of his or her life. Some of the options available under Life Insurance are -

  1. Term Life Insurance
  2. Endowment Plans
  3. Money-Back Policies
  4. Unit-Linked Insurance Plans

General Insurance Agents

General insurance is the other type of insurance that covers -

  1. Health Insurance
  2. Automobile Insurance
  3. Travel Insurance
  4. House Insurance

How to Become an Insurance Agent?

Around two decades ago, insurance agents had limited resources. All the transactions were physical in nature and were time-consuming. The conventional method of selling insurance was characterized by a one-sided approach.

Until lately, working for an insurance company and selling their products was the typical path to becoming an insurance agent. Nowadays to accomplish being an insurance agent, digital media plays a vital role, which is a lot faster way of sailing in the insurance business.

Nowadays, the fastest way to become an Insurance Agent is to complete the PoSP certification process. You only need to meet the IRDAI's minimum educational standards and complete our training program to become a POSP agent.

The processes to becoming a PoSP Insurance Agent are outlined below.

  1. Register with best PoSP insurance company in India or service provider
  2. Upload the following information/documents
    • Aadhaar Card
    • PAN Card (Personal Identification Number)
    • Bank Account Information
    • Certificates of Education
    • Passport Photograph
  3. Fill out an application for POSP training
  4. Complete the POSP Insurance Training in a few quick steps
  5. After passing the insurance agent exam online, you will be a PoSP Certified Agent
  6. Then you can start working as a POSP Insurance Agent
  7. Begin earning by referring clients

How Much Insurance Agents Earn in India

For an insurance agent, there is no restriction or limitation on his/her earnings. The earnings and commissions of an Insurance Agent are entirely dependent on the individual's potential, type of policy, and the number of policies sold. On each policy sold, the agent is paid a commission. Thus an insurance agent can increase his earnings to the maximum by targeting more customers with diverse, beneficial, and high commission policies.

Conclusion

A business professional who gives advice about and sells various insurance plans for an insurance company is known as an Insurance Agent. An Insurance Agent is a representative of any insurance company, that serves as an important bridge between the insurance business and the individuals. More and more people are turning towards the insurance business as insurance agents to earn a lot of monetary, social, and personal benefits selling Life Insurance or General Insurance.


Nowadays IRDAI’s PoS Program and PoSP Insurance Agents are becoming more and more mainstream as the process of buying and selling insurance policies has become very easy and convenient for both the customers and insurance agents.


As a POSP insurance agent one can sell Life Insurance and General Insurance where the agent can sell multiple policies for multiple insurance companies, acting as a direct and single Point of Sale (PoS).


In earlier years the process of selling insurance was cumbersome. But due to the digital revolution, it is very easy and simple to become a POSP insurance agent online. It is also easy to track leads and gain more customers using new-age technology and an insurance agent can earn a good amount of earnings by working smart using his/her marketing skills.

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