The insurance industry is changing at a rapid pace. Where initially there were only certain insurance companies, now the options are increasing. Where initially insurance was just considered to be a tool that offers safety and security, today there are plans that help with wealth creation as well.
But there is one term that is associated with the insurance industry that you must know. This is the POSP, which refers to an intermediary who sells simple insurance plans. They do have the same kind of insurance agent qualifications, but they aim for something different.
So, now the question is, what is POSP in insurance? What are the roles, and how can you actually be one? So, read this guide to explore all the answers you need and ensure you move ahead in the right direction.
Understanding the Meaning and Full Form of POSP
A POSP or Point of Sales Person is an authorized individual. He is the one who can sell simple insurance products. These usually include options such as health, motor, or term plans. These are the plans that do not need a deep analysis of the applicant’s income and other factors for the insurance.
The idea behind this role is to make insurance more accessible to people across different parts of the country. Now, the traditional agents may deal with complex policies. But when it comes to the POSP, they mainly focus on basic plans.
The key features of the POSP are as follows:
- Sells the insurance plans that are simple and quick to issue.
- Trained and certified to ensure they sell the right insurance plan.
- The course to be completed is of short duration.
- Helps to make the insurance more accessible and reachable.
- Assists the customers in selecting the right plan.
- Guide on the insurance plans by explaining benefits and completing documentation.
In short, the POSP meaning highlights a simplified and customer-friendly approach to insurance selling. This makes it easier for anyone to start a career in this field.
Key Roles and Responsibilities of a POSP Insurance Agent
When you plan to become a POSP insurance agent, there are certain things that you must know. These are the key roles and responsibilities. Knowing this will help you to ensure that you know what you are intended to do once you have gained the certificate. So, here are the key roles and responsibilities that you would need to accomplish as a POSP:
1. Understanding Client Needs
A successful POSP starts by knowing their clients well. This involves understanding their income, lifestyle, and specific goals. By doing so, you can recommend plans that truly fit their needs rather than selling just for commission. The focus should always be on long-term financial security and customer satisfaction.
2. Explaining Policy Features Clearly
Insurance can be confusing for many people. As a POSP, your job is to explain each policy’s benefits, coverage, exclusions, and claim process in simple language. This helps clients make confident and informed decisions. All this is possible without feeling overwhelmed by complex terms.
3. Assisting with Documentation and Onboarding
Completing the documents for insurance is not easy. One mistake can lead to rejection or even delayed policy issuance. A POSP ensures that you complete the entire process in a proper manner. They help you to avoid mistakes and ensure that you get the plan that is perfect for you. Also, with proper guidance, you can ensure that the onboarding is great with no hiccups.
4. Maintaining Customer Relationships
Your relationship with a client is just starting. Once the policy is issued, you now need to stay at the top of your service. Asking the client for any query or support after that can help you stand out. Not just that, if you can help the applicant with the claims, renewals, and others, you can be in a better position after all.
5. Ensuring Compliance and Ethical Conduct
Every POSP must follow the rules set by IRDAI (Insurance Regulatory and Development Authority of India). You should only sell approved products. It is important that you maintain transparency and never mislead customers. This will ensure that you not only earn well but also build a base of trusted customers who can help you with referrals as well.
Steps to Become a POSP Insurance Agent in India
Now that you know what POSP is and their roles, the next thing to know is how you can be one. Just like when you plan to become an insurance agent, you pass through exams; the same thing applies here as well. So, here are the steps that you would need to follow when you plan to become a POSP insurance agent:
1. Choose a Licensed Insurance Company
Start by selecting a company. It is important to ensure that this is approved by the Insurance Regulatory and Development Authority of India (IRDAI). Only authorized insurers or their registered partners can appoint POSPs. So, when you ensure that you apply through a recognized organization, you are in a position to start right.
2. Meet the Eligibility Criteria
To qualify as a POSP, you must:
- Be at least 18 years of age.
- Have completed Class 10 (matriculation) from a recognized board.
These are the basic insurance agent qualifications. When you pass through this, you are in a position to apply for the profession. Also, these simple qualifications make this process open to students, homemakers, and professionals seeking part-time or full-time work.
3. Complete POSP Training
You are not registered. This is the time that you focus on proper training. This is online, and completing it is very important. This will help you to learn the basics like:
- Insurance fundamentals
- Sales ethics
- Imparting product knowledge
- Regulatory guidelines
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This ensures that you are well-prepared to guide customers responsibly.
4. Pass the Certification Exam
Now you have completed the training. It is the time when you must clear an online test. This test is conducted by the insurance company. The exam checks your understanding of insurance concepts and customer handling. When you pass the test, you will receive an official POSP certificate. This is authorized by IRDAI.
5. Start Selling Insurance Policies
Now you are certified. You can now start selling the insurance plans that fall under the category. Every successful closure of an insurance plan will ensure that you earn the commission. This will help you to boost your income. Also, if you wish, you can start planning your career in the field as well.
Becoming a POSP insurance agent is a great way to start a rewarding career in insurance. You can do this with really minimal investment. All you need to complete the application and pass the exam. This will offer you the opportunity to work on flexible working hours. This will be a chance to make a difference in people’s financial security.
Gain Immense Benefits of Becoming a POSP with Choice Connect
Starting as the POSP agent is a great way to enter the industry. You gain a chance to sell simple insurance plans to multiple clients and earn income. With time, you can polish your skills and move ahead to be a full-time agent as well. But all this is possible when you have the right kind of support through your journey.
This is where Choice Connect stands out. When you become a financial agent here, you not only get the support but also the needed guidance to move ahead and build a successful career. The platform offers you free registration and training, which is great. Then there is ready marketing material and managers who can help you move ahead.
So, what are you waiting for? Register today and start earning.
FAQs
1. What is the full form of POSP in insurance?
The full form of POSP is Point of Sales Person. It refers to an individual certified by an insurance company to sell simple insurance products such as motor, health, and term insurance plans.
2. What are the qualifications required to become a POSP insurance agent?
To become a POSP, you must be at least 18 years old and have completed Class 10 from a recognized board. No higher education or prior experience is required.
3. How long does it take to complete POSP training?
The training usually takes a few hours to a few days, depending on the insurance company. It is conducted online. The exam covers plans and ethics as well as regulations, which are important.
4. Can I work as a POSP along with my current job?
Yes, you can. Being a POSP offers flexible working hours. This means you can work on your hours. Even when you have a full-time job, you can still work on this profile and earn a passive income.
5. Is there any exam to become a POSP insurance agent?
Yes. After completing your training, you must pass a short online assessment. This is conducted by the insurer. Once you clear it, you receive an IRDAI-approved certification to start selling policies.
