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Do You Need a College Degree to Be an Insurance Agent?

Time changes, but the need for insurance in one’s life cannot be replaced. No matter where we are or what we do, we’ve always heard that insurance is an individual's best protection and investment…

Time changes, but the need for insurance in one’s life cannot be replaced. No matter where we are or what we do, we’ve always heard that insurance is an individual's best protection and investment tool. In the Indian Insurance Industry, where about 23 life insurance companies continuously develop their products to fit an individual’s personalized needs, it becomes difficult for a person to compare and choose the best plan from many. 

As an insurance agent, this is where you play your crucial role. An insurance agent is an experienced individual who understands clients’ needs and suggests one optimal plan to them in many. The job is exciting as well as rewarding at the same time. Are you fascinated by this career opportunity and wondering what degree you need to become an insurance agent? Let’s discuss all the requirements and processes in detail.

Who is An Insurance Agent?

The insurance industry is one of the major industries where millions of money is invested in the market. The insurance industries offer prospective clients various life insurance and general insurance policies. To sell these policies, they need their representatives, an Insurance Agent or POSP advisor, thus, the role of an insurance agent is crucial. They are the middleman between an insurer and customer and are responsible for communicating and understanding the customers' needs and offering them a suitable life insurance or general insurance product. You need adequate training and licensing to sell insurance we are going to explain further.

What Do I Need to Become an Insurance Agent in India?

To become an insurance agent and sell life, and general insurance policies, you must need certain skills 

  • Good communication skills
  • Excellent listening ability
  • Selling and marketing ability
  • People skills to expand network
  • Analyse customer's needs to offer suitable insurance plan
  • Follow up and convert the leads

Basic Requirement to Become An Insurance Agent

Every career requires some basic qualifications, the insurance industry has also set up some restrictions to allow an individual to become an insurance agent in India. Regardless of whether you want to become an insurance agent with a particular insurance company or be an independent insurance broker, the basic requirement of becoming an insurance agent is the same.

  • Education: An individual who has his/her secondary education (10th Grade) certificate from a recognized board is eligible to become an insurance agent. 
  • Age: You must have to be of at least 18 years of age to be eligible to become an insurance agent in India and sell life insurance or general insurance policy of any insurance company.
  • Pre-Licensing Requirements: You need to register through the official website of the Insurance Regulatory and Development Authority of India (IRDAI) and go through a compulsory training process for licensing. Or you can also contact agencies like Direct to Customer Consulting Services Pvt. Ltd. “RenewBuy” to inquire about their pre-licensing process. 
  • Examination: The IC38 is the basic examination an individual needs to qualify to be an insurance agent in any insurance company. This objective examination varies in difficulty level depending on the insurance you want to sell, such as life insurance, general insurance, health insurance or motor insurance, etc. 
  • Licensing: Once you qualify for the Insurance Regulatory Examination, prepare the documents as specified by the insurance company or agency. The documents can include identification certificates, photographs, education certificates, exam scoreboards, and others as per the requirements. You must submit a specified fee and forward your application to IRDAI for approval. Once verified, you will receive your insurance agent licence. 
  • Sell the Policies: Now, you are eligible to sell life insurance or general insurance policies per the allowance of the license. 

Do I Need a College Degree to Be An Insurance Agent?

No, having a college degree to be an insurance agent is not a prerequisite. But while it’s not a necessity, having a degree may improve your chances of becoming successful as an agent and open good career opportunities further. Since, from a homemaker, fresher, to a regular employee working in a good position have chances to be an insurance agent and expand their earning opportunities, a good degree can add up value to your performance.  

One can opt for different career opportunities as an insurance agent, and requirements vary as per various life insurers available in the insurance market. 

What Kind of Training is Required to Become an Insurance Agent?

An insurance agent can belong to different educational backgrounds. To become a POSP advisor or an insurance agent, a secondary education (10th grade) certificate is required, and different insurers may require a higher education certificate, depending on the role. Most states require to complete a pre-licensing training course. The Insurance Regulatory and Development Authority of India (IRDAI) has a specified training and examination module for an individual who wants to become a POSP advisor or an insurance agent/broker. 

Anyone qualifying for the basic requirements to become an insurance agent can take the training and appear for the examination. This training module takes a few hours to complete and covers major topics related to the state insurance examination. During the training, the aspirant learns about insurance ethics, different insurance policies, state laws, and basic selling strategies. 

How Long Does it Take to Become an Insurance Agent?

Depending on the state insurance licensing process, it can take a few days to complete the training, appear in the examination, and allot an insurance license. Different insurers offer free or discounted material to study for licensing exams. If you want to sell multiple insurance products like life insurance, health insurance, general insurance, or any other, you must take multiple pieces of training and qualify for the examinations. Depending on the insurance agent's examination level, online courses can take around 20-25 hours to complete. 

Final Words

One can become a life or general insurance agent with mandatory training and a licensing examination. While it is not necessary to have a college degree to become an insurance agent, having one adds value and opens multiple opportunities in insurance. You just need to check with the state laws and basic requirements to enter the insurance agent gateway. 

Want to learn more about how you can become a POSP advisor with RenewBuy, connect with us over our website or download our handy mobile application. 


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