Insurance Agent
Insurance agents are there to help you make informed decisions.
What kind of insurance you should purchase? How much insurance to purchase?
About Insurance Agent
Insurance Agents work for insurance companies. Reach out to fresh and existing clients to sell insurance. Insurance agents contact clients, whether potential or existing, to grow their customer base. They meet with them. Take details about their financial requirements and coverage. Match the best insurance policies suitable as per their needs. Explain the options, its advantages, and disadvantages to customers.
Types of insurance may include life, property, health and long-term care. Besides, agents help their clients settle any claims on their insurance.
Why become an Insurance Agent
Most Indians work well into their 60’s. So if you have a job that is enjoyable, as well as fulfilling. Work that has a very low-stress level. A good work-life balance. Great prospects to improve, get promoted and earn a higher salary. Moreover, the career graph only goes up.
The work of an insurance agent can be a lucrative and stress-free job.
- Independent Life – Decide your working hours yourself. Decide your office yourself. No need to get tied to a desk, 9-5.
- Multiple Opportunities – You can work Part-time, After Retirement, or even a stay-at-home parent.
- Attractive Income – Anyone looking to supplement his or her income can benefit.
With all these innumerable benefits, who would not want to become an Insurance Agent?
Who can become an Insurance Agent
If you want to become an Insurance Agent, you must:
- a valid Address Proof.
- undergo the requisite training. The number of hours of training required depends upon the type of insurance you want to deal with.
- clear the Certification Examination.
Frequently Asked Questions
Q1. What do Insurance Agents Do?
Insurance Agents work for Insurance companies. And sell Insurance Plans of that company.
You would be identifying and soliciting existing and potential clients. Your duties can include establishing a client’s insurance coverage. Calculating premiums. Making sure appropriate forms, medical examinations, or any other policy requirements are properly fulfilled. You would need to monitor insurance claims and respond to client inquiries.
Q2. What are the educational qualifications required?
You need to have cleared your senior secondary or 12th standard examinations.
Q3. What are the job skills required?
- Initiative: Insurance agents need to find new business. Quite a lot of time is spent looking for potential new clients.
- Self-Confidence: Calling new clients. Explaining offers to a new and unknown customer needs a lot of confidence on the part of the insurance agent.
- Analytical Skills: Insurance agents need to understand their potential clients. Analyze their requirements and goals. And apply the insurance policies which match best.
- Communication Skills: Insurance agents speak comfortably and charmingly to customers. Make them feel comfortable and helping them to understand their policies.
Q4. Can I work as an Insurance Agent for more than one Insurance Company?
NO. The present regulation mandates that a person should work as Insurance Advisor and solicit Insurance business only for One Life Insurance Company and One General Insurance Company.
Q5. Can I write IRDAI Exam directly?
NO. You have to enroll yourself with the Insurance Company you wish to be associated with. Finish the requisite training. It is only through that Insurance Company that you will be able to write the exam.
Q6. Do I have to attend training?
Candidates must complete their 50 hours of training from an IRDAI approved training institution. Before taking the exam and act as Life or General Insurance agent. In the case of Candidates who are seeking a Composite license, to act as Composite (i.e. Life and General) Insurance Agent has to complete 75 hours of training.
Q7. What is Risk Mangement?
One of the suggestions from agents to their clients is to adopt risk management procedures and systems to reduce their risks. Thereby, saving on their insurance premiums. Risk management means taking precautions to reduce the risk of loss. Whether it is fitting smoke alarms or sprinkler systems, or adding extra security on windows and doors. For Business Entities, it may involve safer working practices within the factory. Or staff being trained in safety. Practicing fire drills and evacuation procedures. These are a few of the risk management techniques which are all designed to lower insurance risk exposures and costs
Q8. What is Underwriting?
Underwriting is the process that an insurance company uses to assess the risk involved in providing insurance cover to a particular customer. Depending on the assessment, the risk of undertaking an insurance contract with that specific customer is accepted and the premium rate is decided upon.
Q9. How are the Insurance Agents paid?
The commission is the most common form of payment by the insurance company to the agent. Generally, this commission is paid as a percentage of the premium paid. The first premium gets the highest percentage. All subsequent premiums have a reduced rate of commission attached. However, the Agent will get commission during the tenure, as long as the premiums are being paid.
Q10. Are Insurance Agent & Broker same?
No, there is a big difference between the two. The agent acts on behalf of one Life, General or Standalone Health Insurance Company, each. He can only sell what his principal insurer has to offer.
Whereas, a broker acts on behalf of the client. They are not tied to any insurer.
Q11. What is Deductible?
The amount, which the customer has to bear in all cases. First, this amount gets deducted from the total assessed payable claims amount. And only afterward, the insurance company’s liability is determined.
Q12. What is Re-insurance?
It is an arrangement using which insurance companies spread their risk with other underwriters or reinsurance companies. Thes Re-insurance companies are called Re-insurers.
Q13. What is Rebating?
Demanding a cashback from the insurance agent is illegal. An agent cannot share his earned commission with the customer, as per the law.