Becoming An Insurance Pro: Steps To Success

A Point of Sales Person (POSP) is an individual who works with insurance companies to sell insurance plans directly to customers. They are responsible for selling different types of insurance products such as health insurance, car insurance, life insurance, and more. To become a certified POSP insurance agent, one must meet certain eligibility criteria and undergo a training process. This includes being over the age of 18, having completed secondary education, and possessing valid identification documents such as an Aadhar Card and PAN Card. Additionally, individuals must register with an insurance company, complete mandatory training, and pass a certification exam. The benefits of becoming a POSP agent include flexible work opportunities, the potential for high earnings, and the ability to work from anywhere.

Work from home

Working from home is a key feature of becoming an insurance Point of Sale Person (PoSP) or Point of Sales (POS). The role is designed to be flexible, allowing you to work from anywhere, at any time, and be your own boss.

The Symbo PoS App, for example, enables partners to earn, manage, and share information, as well as generate and compare insurance quotes. This can all be done from the app, which is available anywhere in India. Similarly, the IDEdge app by InsuranceDekho offers IRDAI registration and the ability to sell insurance policies, advise customers, and assist with documentation and claims. This app also offers the freedom to work from anywhere, with no time constraints.

The POS-Gennext Insurance Broker app also offers the ability to manage your insurance business from anywhere, with instant online policy issuance and sharing of quotes, documents, and renewal reminders with customers.

These apps provide a great opportunity to work from home and be your own boss, with the flexibility to work as per your requirements and availability.

Low start-up costs

One of the most significant advantages of becoming an insurance POS agent is the low start-up costs involved. With zero investment required, you can launch your career as an insurance agent without any financial burden. All you need is a smartphone and internet connection to kickstart your journey. This makes it an ideal opportunity for individuals from all walks of life, including students, homemakers, retirees, and even those with full-time jobs seeking additional income.

The insurance sector in India, governed by the Insurance Regulatory and Development Authority of India (IRDAI), has introduced the Point of Sales Person (POSP) initiative to address the scarcity of professionally trained insurance agents. This initiative lowers the qualification criteria, making it accessible to a broader population. The simplified process allows individuals to become certified insurance agents with minimal investment, primarily their time and effort.

The IRDAI-mandated training for POSP agents is approximately 15 hours long and can be completed within a few days. This training equips individuals with the necessary knowledge to sell insurance products and provide valuable advice to customers. The certification obtained after passing the examination empowers agents to sell insurance policies directly to consumers.

The flexibility of working as an insurance POS agent is another attractive feature. You can choose your own work hours, decide on a part-time or full-time commitment, and even work from the comfort of your home. This flexibility, coupled with zero investment requirements, makes it a convenient and cost-effective career option.

Additionally, the earning potential as an insurance POS agent is unlimited. Your income is directly linked to the number of policies you sell, and there is no maximum limit to your earnings. The more policies you issue and deals you close, the higher your income will be. This performance-based structure ensures that your hard work and dedication are rewarded.

Flexible hours

One of the biggest advantages of becoming an insurance POSP agent is the flexibility of working hours. This job is ideal for those who want to work from home or are looking for remote opportunities. As a POSP agent, you can work anywhere, anytime, and at your convenience. You can decide your working hours and choose to do the job part-time or full-time. This flexibility allows you to have other commitments alongside this job, such as being a student, a homemaker, a retired person, or a salaried individual wanting to earn some extra income.

The work of a POSP agent can be easily managed from home, without the need to hire an office space or travel to different locations to sell insurance. With the support of technology, you can use IT tools, cell phones, the internet, and online registration channels to sell insurance policies and connect with your clients. This remote work setup also allows you to reach out to clients all over the country and cater to their insurance needs.

The income of a POSP agent is directly linked to the number of policies sold, so you can build higher wealth by selling more insurance plans. This performance-based income structure gives you the freedom to work at your own pace and set your own income goals. There is no limit to how much you can earn as a POSP agent, and you can even earn extra income through rewards and incentives.

The flexibility of being a POSP agent also extends to the range of insurance products you can sell. You can offer your clients a wide range of insurance plans, including health insurance, motor insurance, life insurance, travel insurance, home insurance, and personal accident policies. This variety allows you to cater to the diverse needs of your clients and provide them with comprehensive protection.

Lastly, the training and certification process for becoming a POSP agent is designed to be convenient and flexible. The mandatory 15-hour training can be completed within a few days, and the certification exam can be taken online. This means you can quickly start your journey as a POSP agent and enjoy the flexibility and independence that comes with the role.

High earning potential

The earning potential of a POSP insurance agent is unlimited as it is a commission-based role. The more insurance policies you sell, the more you can earn. There is no maximum limit to your earnings.

For example, ICICI Direct states that you can earn up to ₹85,000 in commissions every month. However, the amount you earn will depend on the number of policies you sell and the deals you close.

The role is also a zero-investment business opportunity. The only investments you need to make are your time and effort.

You can also work flexibly, choosing your own hours and working location, allowing you to fit the role around your lifestyle.

Easy to get started

Getting started as an insurance agent is a relatively straightforward process. The requirements to become an insurance agent vary by state, but they can often be completed much faster than other professions that require a license.

Decide what kind of insurance agent you want to be

You can choose to be a captive agent or an independent agent. A captive agent works exclusively for one insurance company and represents only their products. They are provided with training and support by the company. On the other hand, an independent agent works with multiple insurance companies and offers clients a range of policy options from different providers.

Decide on the insurance products you will sell

You can choose to focus on commercial insurance or personal insurance policies. Commercial insurance agents provide coverage for businesses, including general liability insurance, commercial property insurance, and errors and omissions coverage. Personal lines of insurance cater to individuals and families, offering coverage for motor vehicles, homes, and life insurance.

Review your state's licensing requirements

Each state has its own licensing process and requirements. You will need to determine the specific type of license you need based on the insurance products you plan to sell. The two most common types of licenses are the Property and Casualty License and the Life, Health, and Accident License. Your state's department of insurance or the company you plan to represent can provide you with detailed information on the requirements.

Complete a pre-licensing education course

Most states require you to complete a pre-licensing course to prepare for the licensing exam. These courses can be taken online or in-person and typically cover insurance concepts, terminology, and relevant regulations. The length of these courses varies by state and can range from a day to several weeks.

Take the insurance license exam

After completing your pre-licensing course, you will need to schedule and take the official licensing exam. These exams are usually proctored and consist of multiple-choice questions. The format and content of the exam may vary depending on your state and the type of license you are pursuing.

Submit your license application and background check

Once you have passed your exam, you will need to submit your license application, which typically includes a background check and fingerprinting. The application process and requirements may differ depending on your state. Some states may require you to submit additional documents or pay application fees.

Get appointed by an insurance company

To sell insurance products, you must be appointed or authorized by an insurance company. This usually involves completing an application process and meeting their specific requirements. Once appointed, you will have the authority to act as an insurance sales agent for that company.

Find and maintain a client base

With your license and appointments in place, you can start building your client base. You can begin by insuring yourself and reaching out to friends and family. Networking and marketing your services are essential for expanding your client base and establishing yourself in the industry.

Obtain insurance for your business

As an insurance agent, it is important to protect your own business with the appropriate insurance coverage. This may include general liability insurance, errors and omissions insurance, workers' compensation insurance, commercial auto insurance, and cyber insurance. These policies will safeguard your business against various risks and liabilities.

Starting a career as an insurance agent can be a rewarding and flexible path, offering the potential for unlimited salary growth and a diverse range of clients. With the right combination of education, licensing, and networking, you can set yourself up for success in this exciting and dynamic industry.

Frequently asked questions