Become an Insurance Agent
Looking for an industry that is unaffected by a recession or an economic downturn? Insurance is one of those industries that remain mainly untroubled by the state of the economy.
Start selling insurance and make a commission every year,
• The easiest way to start side income & Zero investment required….!!!!!
Become Insurance POS Agent
What is Insurance?
Insurance acts as a means of safety and protection from any kind of financial loss. It is a sort of risk management, formerly used to hedge upon the risk of a contingent or accidental loss.
An entity that provides insurance is called an “insurer”. An individual or entity who buys insurance is known as an “insured” or a “Policyholder”. The insurance transaction includes the insured expecting a guaranteed and recognized small loss, in the form of payment to the insurer in trade for the insurer’s guarantee to pay the insured in the case of a covered loss.
The loss can be or not be financial in nature. But it requires to be reduced to financial terms. Normally it involves something in which the insured has an insurable interest built by ownership and possession and many more. For carrying out the insurance selling we need insurance agents.
About Insurance agent
An Insurance Agent is a way of contact with an insurance company for all individuals. They help individuals with insurance products that are completely fit for them and to gather all the required documentation and support policyholders during the term of the policy.
One can become an Insurance Agent at one of the companies i.e. for a Life Insurance company or a general Insurance company or become a composite Agent. It is all on the insurance agent’s abilities and skills.
Role of Insurance Agent:
Post end of training & passing the examination, an individual agent is given a license by the IRDAI to sell insurance policies/products to the customers and give post-sales service including support by identifying himself/herself & Insurance Company of whom he/she is an Insurance Agent to the insured customers at the time of claim.
An Insurance Agent must serve Insurance customers to take the right insurance policy for them, their families & suitable insurance schemes for their businesses that covers risk which in an unfortunate event may act as financial support.
The agent must reveal to the Insured customer, all the products for sale along with their characteristics in detail, which are offered by his Insurance Company.
An insurance agent is needed to get the necessary documents which are required by the Insurance Company & to explain to the customer about the data which is required to fill in the proposal form & also tell the customer about the importance of disclosure of all real facts which may affect the underwriting decision & claim settlement later on.
An insurance agent is needed to disclose scales of commission for the sale of insurance products offered to customers if such demand for disclosure is made by the customer.
An Insurance Agent must advise its insurance customers to effect nomination or assignment & support wherever necessary for any change in address, contact details, etc.
Types of Insurance Agents
There 4 types of Insurance agent in India:
Individual Insurance Agent:
If a person wants to become an insurance agent, then he/she is required to get basic training and clear the certification examination. He/she gets a license by IRDAI to sell insurance policies to the public and offer services related to insurance.
The license can be of Life Insurance, General Insurance, or both. One Insurance Agent can sell and represent, one particular life insurance company and one particular non-life insurance company, at the same time.
The Individual Insurance agent may sell Direct Life Insurance, Non-life insurance, or Composite Insurance (Both Life & Non-Life). Independent Agents are not employees of the companies but they represent the company.
These agents do get the commission from the insurance company. And a specific commission on all the following premiums, as well. These are, usually, available in all locality, market, and/or society.
Captive Insurance Agent:
They can sell insurance for one specific company only, they are a “name brand” insurance company. The main purpose of this kind of company is to insure the risks of its parent company and associated groups.
Day-to-day operations are managed by the owner company, which will also be the primary insureds. These day-to-day operations involve underwriting and claim choices as well as an investment policy of the captive.
Captive Insurance means a subsidiary corporation incorporated to give insurance to the parent company and its affiliates. A Captive Insurance company serves as an alternative for several corporations and groups who want to take economic control and handle risks.
By underwriting their insurance rather than paying premiums to third-party insurers. Various acceptable risks which are usually insured by captives include “property, casualty, and other insurances”.
Micro Finance Insurance Agents:
According to IRDAI, those Agents or Entities, already licensed for soliciting the insurance business or selected as Referral Company are not eligible to be selected as micro-insurance agents.
A micro-insurance policy is like a Life or General Insurance policy. The maximum permitted limit for the Sum Assured is Rs 50,000. A Life Micro-Insurance can be on an individual or group basis. The Insurance Agent can offer composite covers or package products that add life and general insurance covers together.
The Micro-insurance business is done through NGOs, Self-Help Groups, and Micro-Finance Institutions. This special kind of insurance policy was created by the IRDAI, to expand insurance coverage among economically unprotected sections of society.
POS (Point of Sale) Agent:
IRDAI has approved the POS agent to sell basic insurance products. The idea is to expand insurance invasion in the country. Because these individuals have more under qualifications and training, as correlated to other insurance distributors.
IRDAI has allowed these individuals to sell only basic insurance products, which don’t need a lot of underwriting. Hence, the products that need very little underwriting. Because they are based on the information given by the prospect like motor insurance, travel insurance, and personal accident insurance.
Also, such insurance policies are automatically created online by the system. The intervention required for these products is minimum. Hence, the training and exams for such persons could be of a minor degree than those for full-fledged distributors.
POS Insurance agents can be involved either directly by insurers or by mediators such as corporate agents and insurance brokers. The minimum educational qualification needed is Class 10 and their age should be 18 years minimum.
Who can become an Insurance Agent
According to IRDAI guidelines, any individual who wants to become an insurance agent must fulfill the below-mentioned criteria:
- The applicant should have attained the age of 18 or above.
- An Insurance Agent must have a bachelor’s degree (graduate). But, in some cases, someone who has passed out of school but has vital talent and experience in sales may also be able to become an agent. So, being the 12th pass is the minimum requirement for becoming an insurance agent. For urban areas, the minimum requirement is the 12th pass and for rural areas, it is the 10th pass.
- Also, one needs to pass an exam administered by the IRDA -Insurance Regulatory and Development Authority.
- The documents needed include proof of identity, requisite exam certificates, proof of address, PAN card copy, and photos in the designated format.
- To get a license to sell insurance, an individual has to undergo a certain amount of training. The number of hours of training required depends upon the kind of insurance the individual intends to deal with.
Steps of Registration
- Simple Registration Process: To become an Insurance agent, you have to complete a simple registration form available on the website. You can submit the documents specified in the article.
- Online or Offline Training: Once you are done with the registration process, you will have to go for online or offline Training of 25 hours. Upon completion of the training, you will be awarded a training certificate. The training includes all the phases of the Insurance Business.
- Examination: Further, you will give a Pre-Licensing Online exam conducted by IRDA and obtain at least – 17 out of 50 Marks. Objective type question will be asked in the examination
- License: Upon passing the exam, you will be given a license by IRDA to work as an insurance agent. Then you will be appointed as an agent.
What You Get?
IRDA approve POS Code to sell Polices
Earn Big Monthly Commissions
Get online quotes in one place & Instant policy
Complete online Process, No paper work
Timely Pay-outs & Training for latest products
Documents required to become Insurance Agent
Identity proof-Aadhar card
Some copies of one’s photograph
Highest education certificate
Education & Training for an Insurance Agent
You can work as an insurance agent without formal qualifications, but most employers normally require you to get your Senior Secondary Certificate of Education.
You will apparently get some informal training on the job. Entry to this occupation may be increased if you have qualifications.
You may like to consider a VET qualification. As subjects and prerequisites can vary among institutions, you should contact your chosen institution for further information. You can also become an insurance agent by a traineeship.
Tips to become a successful Insurance Agent
Work on good salesmanship
Even though insurance agents are giving a service to customers and clients, they are salespeople only. By being an insurance agent, one can earn strong sales skills and learn the method of acquiring, training, and keeping quality customers.
This might need visiting seminars or experiencing a professional training program in sales.
Produce a Powerful Work Ethic
The insurance industry is competing and one may be running individually for a big portion of the day. One needs to acquire a great work ethic to be proactive when attempting out new customers.
Also, closing sales and growing relationships with clients and business experts. Prioritizing one’s time and keeping a great work ethic will take one far throughout their career.
Determine your market
One needs a plan to target the best candidates and try out new customers in the top markets. Take the time to analyze the market and generate a strategy so one is making the best use of their time.
Whether one is out on a sales call or managing a presentation to potential customers. One requires a wide understanding of their customer’s requirements.