If you are looking for options to earn more money and to meet your expenditures to live a good life, there might be so many thoughts running in your head that what to do or how to make extra money. Even if you are already in job and still want to supplement your income, becoming an insurance agent is one of the best option you can opt for. Let’s have a look on How to become an insurance agent in India and examine the qualifications or training required to become an insurance agent as well. Insurance aggregator like RenewBuy is providing a platform where its POS Advisor are earning money by selling insurance policy in few clicks.
Who is an Insurance Agent
An insurance agent is the representative of insurance providers and works as an insurance advisor for the clients. Insurance agents provides the suitable policies and other insurance requirements to the customers by educating about the in-hands options and solving the related queries.
Types of Insurance Agent
There are different types of insurance agents according to the distribution channels of the insurance companies as directed by the IRDAI.
1. Internal insurance sales agent - Internal insurance sales agent refers to someone who is a full-time on-board employee of an insurance company. They work for the specific company and sells their policies only.
2. Captive insurance agent - Captive insurance agent is an agent who is working to sell only one insurance company’s insurance product.
3. Independent broker/Point of Sales – A POSP or point of sale person is IRDAI approved insurance agent who can offer bouquet of policies from different insurance companies to the customer. POSP has a license code affiliated from IRDAI to work with multiple insurance companies and sell multiple insurance policies to the clients at the same time.
How to Become an Insurance Agent
Those who are interested in becoming insurance agents are required to register online via IRDAI (Insurance Regulatory and Development Authority in India) portal or in today's time one can easily reach out to the Insurance Companies or register online through their websites. If they are looking to have a wide range of products and companies then they can also approach an insurance aggregator. For instance, if someone wants to become an insurance POS advisor for RenewBuy, he/she can approach by visiting their website or their Partner Registration page, all you will be required is to enter a few details and the company will reach out to you in no time..
With RenewBuy, the whole process of training and licensing can be completed in a couple of days. The registration process requires certain documents and formalities and you are done. You will also be required to go through a 15 hour of online training before appearing for an IRDAI certification exam and all you get here is at a zero investment.
Even IRDAI website also offers study materials for agents/POSP that help them to understand what exactly is involved in becoming an insurance agent/POSP. The study materials are available in various languages such as English, Hindi, Marathi, Guajarati, Tamil, Bengali, Kannada, Malayalam, Telugu and Punjabi. The site also has useful links to corporate agents, the insurance institute of India portal, FAQs and more.
For many people, becoming an insurance agent/POSP can be a lucrative and stress-free job. It is possible to decide your own working hours and work from home without being tied to a desk and a 9 to 5 job. Retired people, mothers staying at home, and others looking to supplement their income can benefit from working as an insurance or POS advisor.
What does an insurance agent do?
Before we explore further on how to become an insurance agent/POS, it is important to understand exactly what the job of an insurance agent entails. An insurance agent is someone who is associated with an insurance company or with an Insurance Aggregator; who helps to sell insurance products to the customers. An insurance agent helps people to choose and buy the right kind of insurance as per their requirements. An insurance advisor/agent deals in various types of insurance: motor insurance, health insurance, travel insurance, life insurance, general insurance, home insurance etc.
Becoming a POS (Insurance Advisor) means selling insurance to individuals as well as to families, probably to the knows personally like friends, family and relatives. Insurance Advisors can also sell products to the companies and businesses who need to buy multiple policies, group policies and so on. An insurance agent with a good networking skills as well as a sound head for sales and business can make a good amount of money while working flexible hours from home. Some agents are paid via commission on sales made (income would depend upon the number and value of policies sold). Agents who are employed by the insurance company are paid as salary plus bonuses at the time of achieving theirs sales targets. Some companies also provide clerical support or other resources to agents.
Who can be an Insurance Agent?
According to IRDAI guidelines, any individual who wants to become an insurance agent must fulfil the below mentioned criteria:
1. An Insurance Agent/POS should have bachelor’s degree (graduate). However, someone who has passed out of school but has significant talent and experience in sales may also be able to become an agent. Hence, being 10th pass is the minimum requirement for becoming an insurance agent.
2. The documents required include proof of identity, requisite exam certificates, poof of address, PAN card copy, and photos in the prescribed format.
3. To obtain a license to sell insurance, an individual has to undergo certain amount of training. The number of hours of training required depends upon the type of insurance the individual intends to deal in; for instance the duration of training for life insurance may be different from other types of insurance. The duration of training also differs depending upon whether the individual is seeking renewal of a license or applying for a fresh license. Some companies also offer on job training to their agents.
Eligibility Criteria for Becoming an Insurance Agent
There are some basic eligibilities that the applicant must fulfil to become an Insurance agent-
• Education - The applicant must have qualified 10th Standard.
• Age - 18 years and above
• IRDAI Certification - Certified with Insurance Regulatory and Development Authority of India (IRDAI)
• State Licensed - Every state has a license for insurance business. One needs to qualify state level exam to get a license according to the state’s regulation policies.
Procedure to become an Insurance Agent
• Registration: Log on to the insurance provider’s website of choice, look for the insurance agent application and submit your basic details as required.
• Training: To become an insurance agent, you will require to complete the basic training as mandated by the IRDAI. The training can be either offline or online. The training is to be a 15 hours course and can be completed within two to three days. Post completion the applicant will be provided with a certificate.
• License Exam: Once the applicant is done with the training, they must sit through a pre-licensing exam and qualify it. The format of the exam is objective type one needs to score a minimum of 17 out of 50 marks to qualify as an insurance agent.
• Receiving the License: The qualified candidate gets a license awarded by the Insurance Regulatory and Development Authority of India (IRDAI) upon which they can start working as a certified insurance agent.
Documents required to become an Insurance Agent
While registering to become an insurance agent, you will be required to submit few documents along with the registration form. It is always better to keep the documents ready before registration. Here is a list of documents that will be required by the website-
• Identity proof (Aadhar card, Voter ID card, Driving License etc.)
• Address proof
• PAN card
• Passport sized photo
• Educational qualification certificates
Insurance Agent Salary & Job Growth
For insurance agents, there are majorly three kinds of salary structures-
• Basic Salary
• Basic Salary plus bonus- The bonus is rewarded either yearly or when the company/agency completes the set target.
• Basis Salary plus commission- Commission is generally the most followed remuneration format when it comes to insurance sector. The commission is payed according to the no. of insurance done/policies sold in calculation to the risk covered and factors related to if the policies are a new business or renewed transaction.
Roles and Responsibilities of an Insurance Agent
• The insurance agent has to keep an eye at the market for potential client network and identify, filter and gather the customer details to pitch the insurance product and circulate the name by self-advertising about the insurance company in the market.
• An insurance agent assists the insurance company in the sale of the policy and support the customer with purchase of the suitable insurance plan. They have to procure and serve the customer throughout the process of purchase, renew and claim of the insurance policy.
• They should be well through the insurance products they are selling to the customers. The customer satisfaction is a must for any policy sale and for that the procedure should be easy and smooth without any hidden costs and discrepancies in the benefits of the policy purchased.
Insurance Agent Licensing
To become a certified insurance agent, one must get the license approved from Insurance Regulatory and Development Authority of India (IRDAI). This can be obtained by qualifying the mandatory exam, i.e. IRDAI IC 38 pre-recruitment qualifying exam.
Code of Conduct for an Insurance Agent
There are some do’s and don’ts that an insurance agent must follow in order to be a dutiful professional-
• Introduce yourself and the insurance company you are associated with at the first meeting itself.
• Always carry your IRDAI license and produce it whenever asked/needed to.
• If you do not have a valid license, it is counted as breach of the code of conduct to sell insurance or deal with any client for policy related procedures.
• Never lie or be discreet about any policy related information from the customer. Always be honest and provide complete detail while advising them.
How to become a successful Insurance Agent
It is always better to keep updating your skills according to the present market situations. Here are a few tips that can help you become an excellent insurance agent –
• Find Common Grounds - Insurance is more of a personal experience, the way you communicate to the prospective client in first few minutes of the conversation can determine if the you have broken the ice. Build your pitch by making them interested in what you have to say.
• Follow the News - Having knowledge about the policies is sometimes not enough. To be extraordinary you need to know what is happening in the news and how it can impact your business and the preferences of product for your client. Being aware about the news can reward you by being the first one to tap the client with these options.
• Use Marketing Tools - Move forward with the trend and start exploring and engaging in the methods of marketing. Send your clients the e-brochure, share the latest policy update that saves more premium, forward the website link where they can read more about the policy if they feel like.
Benefits of Becoming RenewBuy Point Of Sale (Insurance Advisor)
We all know that the life of an insurance agent was not so easy earlier because he had to put lots of hard work to issue a single insurance policy. He/she had to visit insurance company’s office multiple times, in order to issue one policy. Now, RenewBuy has made POSP’s life so easy with its unique model of issuing policy without wasting their time in visiting insurance company’s offices. Once you become a POSP with RenewBuy, you need not to worry about the useless visits. All you need is a smartphone with an internet connection.
Becoming insurance POS with RenewBuy, your life will become so easy. Below are few benefits of becoming RenewBuy’s Agents:
Once you become a POSP with RenewBuy, you will get the best policy as per the customers need in just few clicks, for which you have to do is:
1. Open RenewBuy app in your smartphone,
2. Enter customer’s details,
3. Get quotes from different companies
4. Choose best option according to the customer’s need
5. Pay online
6. Get policy
RenewBuy is associated with so many insurance service providers which gives its POSP an opportunity to work for multiple insurance providers. He/she can also compare a policy offered by different insurance companies and sell according to the needs of the customers.
The easiest way to earn extra money without much efforts is become a POSP with RenewBuy and you will earn as much as extra money you want to.