Becoming A Non-Life Insurance Agent In The Philippines

Becoming a non-life insurance agent in the Philippines can be a rewarding career choice, offering job flexibility, the potential for financial gains, and the opportunity to help individuals and businesses manage risks. The process typically involves several steps, including finding an accredited insurance agency to join, attending orientation and interviews, and completing the necessary training and examinations. While there are no specific degree requirements, a deep commitment to continuous learning and a drive to help others are essential. Let's explore the steps to becoming a non-life insurance agent in the Philippines and the benefits this career path has to offer.

Training and exams

First, you must meet the basic requirements, which include having the necessary documents such as a diploma or transcript of records, tax identification number, social security system (SSS) ID or form, national bureau of investigation (NBI) clearance, and an insurance training certificate. You must be at least 18 years old and a Filipino national.

Next, you should choose a non-life insurance company you want to join and ensure they are accredited by a non-life insurance company. Research the products and services they offer and how they align with your career goals. Some companies that offer non-life insurance include Aetos Financial, BPI/MS Insurance Corporation, and PAJ Resources, Inc.

Once you've chosen a company, you will likely be invited to attend a career orientation, which will provide you with more information about the company and the role. After the orientation, you will typically undergo a screening interview and possibly a personality test to assess your suitability.

The next step is to complete the required training courses. For non-life insurance agents, this includes basic non-life training, which will provide you with the necessary knowledge and skills to sell non-life insurance products. The training will cover both theoretical knowledge and practical skills related to non-life insurance. You will also need to complete training for Variable Universal Life (VUL) Insurance, which is a type of insurance that offers both life insurance and investment components. Most training sessions are now conducted online, making it convenient for aspiring agents to participate.

After completing your training, you will need to take and pass the insurance examination conducted by the Insurance Commission (IC). The IC is the regulatory body that oversees and licenses insurance agents in the Philippines. The exam fee is typically around PHP 1,000, and the license fee is approximately PHP 1,800. The license is valid for three years and must be renewed by submitting updated documentation and paying a renewal fee.

It's important to note that non-life insurance agents in the Philippines can represent up to seven non-life insurance companies. This provides agents with the opportunity to offer a range of products and services to their clients.

Finally, you will need to submit all the required documents and fees to your chosen company. This includes submitting the agent application forms, documents, and payment for the government exam. Once you pass the exam, the company will guide you through the final licensing requirements.

The process of becoming a non-life insurance agent in the Philippines involves a combination of training, exams, and meeting regulatory requirements. It demands a commitment to continuous learning and development, ensuring that agents are well-equipped to offer comprehensive advice to their clients.

Licensing requirements

To become a licensed non-life insurance agent in the Philippines, you must meet certain qualifications and fulfill various requirements. Here is a step-by-step guide on the licensing requirements:

• Basic Requirements: Ensure you have the necessary documents, including a Diploma or Transcript of Records (TOR), Tax Identification Number (TIN) ID or Income Tax Return (ITR), Social Security System (SSS) ID or form, National Bureau of Investigation (NBI) Clearance, and an Insurance Training Certificate.
• Choose an Insurance Company: Research and select an insurance company that aligns with your career goals, considering the products and services they offer.
• Career Orientation: Get in touch with the chosen company and wait for an invitation from a recruitment manager to attend a career orientation session, which is typically conducted online.
• Interviews and Assessments: Undergo a screening interview and a personality test to assess your suitability for the role and the company. Some companies may also require an orientation before this step.
• Training: Complete the necessary training courses, including those for Traditional Insurance and Variable Universal Life (VUL) Insurance. These sessions will equip you with the theoretical knowledge and practical skills needed to sell insurance products.
• Insurance Examination: Take the insurance examination conducted by the Insurance Commission (IC). The exam fee is typically affordable, and the license is valid for a period of three years.
• Licensing Requirements: Once you have passed the examination, submit the required documents and payments for your license. This typically includes an application form, a recent ID picture, exam results or proof of previous licensing, SSS and BIR registration, and the government license fee.
• License Renewal: Remember that insurance agent licenses must be renewed periodically, usually every three years. Keep track of the renewal dates and submit the necessary documentation, such as updated Income Tax Returns and Privilege Tax Receipts, along with the renewal fee.

Choosing an insurance company

Company Reputation and Stability:

Look for well-established and reputable insurance companies with a strong presence in the Philippines. Research their financial stability, customer satisfaction ratings, and industry rankings. Check if they have received any awards or recognition for their products and services.

Product Offerings and Alignment with Your Goals:

Review the range of insurance products the company offers. Consider both the breadth and depth of their non-life insurance options. Evaluate how their products align with your interests and career goals. For example, some companies may specialize in property or vehicle insurance, while others offer a wider range of non-life insurance products.

Training and Support:

Inquire about the training programs and support systems provided by the company. As a licensed insurance agent, you will need to continuously develop your knowledge and skills. Choose a company that invests in its agents' growth and provides comprehensive training on various insurance products and sales techniques.

Commission Structure and Incentives:

Understand the commission structure and incentives offered by the company. As an insurance agent, your income will likely be performance-based, so ensure that the company provides a competitive and rewarding compensation package. Also, inquire about any additional benefits or incentives, such as travel perks for top performers.

Accessibility and Technology:

Consider the accessibility of the company's services and support. Choose a company with a strong physical presence, such as branches and agents, as well as digital channels and tools that make it easy for clients to purchase and manage their policies. A company with a user-friendly website, mobile app, or digital platform can enhance your ability to serve your clients effectively.

Customer Service and Claims Handling:

Evaluate the company's reputation for customer service and claims processing. Select a company known for its efficiency, fairness, and quick response times when handling customer issues and claims. You can check online reviews and testimonials to gauge their level of customer satisfaction.

Remember, selecting the right insurance company is a personal decision that depends on your unique goals and preferences. Research and compare multiple companies before making your choice.

Career orientation

The first step to becoming a non-life insurance agent in the Philippines is to apply to become a non-life insurance agent of an insurance agency accredited by a non-life insurance company. When choosing an insurance agency to join, it is worth asking about the insurance companies they are affiliated with. For example, some agencies may be affiliated with insurance companies that cater to middle to high-end customers, while others may focus on low to middle-end customers.

Once you have applied, you will be contacted by the company to schedule an orientation and interview. These sessions are usually conducted online and last one to two hours. During the orientation, you will learn more about the company and the role of a non-life insurance agent. You will also have the opportunity to ask questions and gain a better understanding of the insurance industry.

After the orientation, you will be assessed to determine if you are a good fit for the agency. If you are approved, there will be additional steps to complete, such as submitting application forms and documents, and taking the necessary exams to obtain your license.

It is important to note that non-life insurance agents in the Philippines must be residents of the country and pass a qualifying examination conducted by the Insurance Commission (IC). Additionally, a licensed non-life insurance agent can represent up to seven non-life insurance companies.

Overall, pursuing a career as a non-life insurance agent in the Philippines can offer flexibility, independence, and the potential for financial growth. By following the necessary steps and committing to continuous learning, you can build a successful career in the insurance industry.

Interviews and tests

To become a non-life insurance agent in the Philippines, you will need to undergo a screening interview and possibly a personality test to assess your suitability for the industry. The character and personality requirements will depend on the team or company you join, so it's important to look for teams with core values, missions, and visions that align with your own.

If you are applying to become a non-life insurance agent at Aetos Financial, for example, you will first need to submit your application, after which the company will contact you to schedule an orientation and interview. After the interview, the company will assess if you are a good fit to join the agency.

In addition to interviews, you will need to complete the necessary training and pass the insurance exam conducted by the Insurance Commission (IC). The IC is responsible for licensing insurance agents in the Philippines, and the exam will test your knowledge of both traditional and variable universal life insurance products. The exam fee is PHP 1,010, and the license fee is PHP 1,895. Your license will be valid for three years, after which it must be renewed.

To become a licensed non-life insurance agent, you must be a resident of the Philippines and pass the IC's qualifying examination. This includes the IRDA IC38 exam, which is specifically for those seeking to become Insurance Agents or Advisors. The exam is held online and consists of 50 multiple-choice questions to be answered in one hour. A passing score is 35% (a minimum of 18 marks), and there is no negative marking, so it is best to answer all the questions.

Once you have passed the necessary exams, you will be well-equipped to offer comprehensive advice to your clients and begin your career as a non-life insurance agent in the Philippines.

Frequently asked questions