POSP Full Form in Insurance

Team Connect

Mar 7, 2022 • 3 min read

The PoSP full form in Insurance is the Point of Sales Person. It is a term used to describe an insurance agent who is qualified to sell many insurance products.

It is also sometimes referred to as POS. The POS full form in insurance sector stands for Point of Sales.

A PoSP is a single-point insurance agent who offers policies from various insurance firms in both life and non-life categories. An individual who become a PoSP insurance agent sells policies in Life Insurance, Vehicle Insurance, Health Insurance, Accidental Insurance, Home Insurance, and Travel Insurance. He/She has the authority to sell products directly to consumers.

What is the full form of POSP/POS in Insurance

POSP (Point of Sale 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. This agent can sell a wide range of insurance products.

POS (Point of Sales)

PoS is an abbreviation of Point of Sale. In 2015, the IRDAI approved a new sort of distributor, known as a point of sale (PoS) person. IRDAI launched the PoS project to enhance insurance penetration in India. After acquiring a Certificate from IRDAI, a PoS agent can offer insurance.

Differences Between a POSP Agent & Traditional Agent in Insurance

There is a difference in eligibility criteria for a PoSP Insurance Agent and a Traditional Insurance Agent. To be a PoSP Insurance Agent you only need a 10th-grade passing certificate. Beginners who may not have an in-depth understanding of insurance goods will find the training and certification to be straightforward and easy to follow.

The detailed differences between a POSP Agent & Traditional Agent in Insurance are as follows:

CATEGORY	POSP AGENT	TRADITIONAL INSURANCE AGENT
Exam Conducted by	Insurance Company/Insurance Broking Company	IRDAI
Insurance Duration	15 Hrs.	25 Hrs.
Duration of Validation of the Certification	3 Years	Till the Traditional Insurance Agent surrenders his/her agency
Types of Insurance Plans	A POSP Insurance Agent typically sells transparent and simple insurance plans which provide tax benefits and complete protection. They sell products that are specifically approved by IRDAI for solicitation through POSP and are pre-underwritten. These insurance products are very basic in nature. These plans come with clear-cut and straight fixed benefits and do not need elaborate detailing for the customer. A PoSP Insurance Agent does not sell complicated or high-risk products.	They typically sell Complicated Insurance Policies, and High-Risk Insurance Policies A Traditional Insurance Agent sells all approved products including Pre-Underwritten Policies Customized Policies for the Customers. They help the customers with the prospects of the policies and aim to meet their exact needs, and counsel clients on various policy matters
Type of Insurance they can Sell	A PoSP Insurance Agent can sell insurance policies which are mainly pre-underwritten products like Motor Insurance Health Insurance Personal Accidental Insurance Travel Insurance	Apart from the pre-underwritten products, a Traditional Insurance Agent can also sell customized insurance policies like Fire Insurance Marine Insurance High sum insured options in the pre-underwritten insurance products
Target Customer Base	A PoSP Insurance Agent’s Target Customers are the insurance seekers who are looking for simple and basic insurance plans such as Car Insurance/Two-Wheeler Insurance Policies Comprehensive Health Insurance Policies, and so on	A Traditional Insurance Agent’s Target Customers are the insurance seekers who are looking for Customized and Complex insurance plans such as Marine Insurance

How to Become a POSP Insurance Agent

Completing the PoSP certification process is the quickest method to become a PoSP Insurance Agent. To become a PoSP agent, you only need to meet the IRDAI's basic educational requirements and complete our training program.

Following are the detailed steps to become a PoSP Insurance Agent -

Register online
For becoming a PoSP Insurance Agent Apply online on official website of the desired company you want to become an agent with
You can also apply via our smartphone app of that company
Upload the following necessary information/documents

Aadhaar Card
PAN Card
Bank Details
Education Certificate
Profile Photographs
Apply for PoSP Training
Complete the PoSP Insurance Training
Once you pass the insurance agent exam online you successfully become a PoSP Certified Agent and now you can start with your sales
Refer Clients and start earning your commissions

Insurance POSP Agent Commission

The insurance agents are compensated by a commission paid by the corporation. The commission earned is determined by the type of policy and the policy’s duration.

As a PoSP Insurance Agent, there is no such restriction or limitation on the earnings. The earnings are entirely dependent on the type of policy, the individual's potential, and the number of policies sold.

Conclusion:

Especially in today’s challenging circumstances, the insurance industry provides an appealing career alternative by assisting people with part-time and full-time opportunities.

IRDAI’s PoS Program is beneficial for both the agents and customers. A PoSP Insurance Agent and a Traditional Insurance Agent differ in their training period, examination process, selling pattern, customer base, product range, and validation period.

Nowadays it is very easy to become a POSP Insurance Agent Online and it is also a lucrative career that would take you one step closer to your financial stability and independence.