How to Become an Insurance PoSP?

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How to Become an Insurance PoSP?

Do you want to start a part-time work or something which you can do without much investment? If yes, then IRDAI has an option for you, to become a PoSP insurance Agent. In India, you can sell insurance policies to people such as life insurance, health insurance, motor insurance and others. But to become an insurance agent, you have to obtain a PoSP license, below the complete process, eligibility is shared. Check the process to obtain a license in a few simple steps. 

Who is an Insurance PoSP?

The PoSP full form is the Point of Sales Person. The insurance agent works with insurance companies or the corporate agent to sell insurance policies directly to the customers. The primary responsibility of a PoSP insurance agent is to identify potential customers and help them select a suitable insurance plan as per their requirements. 

These insurance agents can sell different insurance products, such as health insurance, life insurance, motor insurance, and others. But to sell insurance in India, you must meet the eligibility criteria. If you meet the basic criteria then you will become a PoSP, this is a good opportunity for freshers to get experience in the insurance industry or for those who want to make some side income.

 

Benefits of Becoming an Insurance PoSP

The following are the benefits of becoming an insurance PoSP agent:

 

Eligibility Criteria to Work as POSP Insurance Agent

Anyone who is looking for work-from-home opportunities and some side income then they can apply to become a PoSP. Below are the criteria that must be fulfilled to become a PoSP insurance person.

The process of becoming a PoSP is completely online and simple. You can access the form through the website and there is no charge and fees to become an insurance PoSP agent. This will make the application process fair and accessible to all people. 

Also, the education qualifications required are not very high, and the opportunity is available to everyone as an excellent career opportunity. No heavy documentation is required, it is very nominal that most people have. If you don’t have experience in selling insurance policies then there is no issue because the 15 hours of training will be provided for the job. No candidate needs to carry higher information, or have exceptional selling skills. All such information and training will be provided to the candidate to set them on their path to success.

 

How to Choose the Best Company to Become a PoSP?

The following points must be checked before becoming an insurance intermediary:

Note: In the market, there are different companies, who fulfil all these criteria and now they include Digital Insurance as well. Do a proper search about the companies before joining.

 

Difference Between Insurance PoSP and Insurance Agent

The following are the differences between PoSP and an insurance agent:

Point of Difference

PoSP

Insurance Agent 

Training

15 hours of training is required.

25 hours of training is required.

Examination

The insurer conducts the PoSP exam.

The insurance agent exam is conducted by IRDAI.

Products or Services They Sell

They sell simple and transparent products which provide complete protection and taxation benefits. Mainly products which are already approved by IRDAI. These plans are simple and come with fixed benefits and there is no need to elaborate too many features to the customer. The PoSP cannot sell high-risk and complicated products.

The insurance agent can sell both approved products which are pre-underwritten or tailor-made for their customers. Also, they can customise the policies to meet all the requirements of the customer. They can provide suggestions and can sell complicated and high-risk products.

Target Customers

The target customers of PoSP are the ones who are looking for simple and basic insurance policies. For example - car insurance, two-wheeler insurance policies, comprehensive health insurance policies, etc.

The target customers of insurance agents are both, who look for simple, complex and customised insurance policies. For example - marine insurance, wedding insurance, etc.

Validity of Certification

The PoSP certification is valid for 3 years. 

The certification is valid till the individual is working for the agency, after he/she surrenders the certification validity will end.

Representation

The PoSP represents the insurance company with they are working.

A broker represents the buyer, their responsibility is first towards the buyer and understanding their needs. Helping them choose the policy that meets their needs the best.

Earnings

They earn on the basis of commissions. In case, they are working full-time, a salary aspect can be present.

Brokers earn primarily on the basis of commissions.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conclusion

To conclude, if you are looking for a job which has flexible timings, lots of opportunities and allows you to help others build a secure financial future, then you must choose to become an insurance POSP. Now when you know the benefits and process, it is very easy to start. Just complete the compulsory 15-hour training by the IRDAI to get an Insurance License. 

In case, you are getting registered through a company or insurance intermediary, then this training will be provided by an insurance company itself. After you cleared the exam, you are ready to get a POSP License and sell insurance policies.

Also read: The Top Strategies to Grow a Successful Insurance Marketing Firm

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