One industry that is mostly unaffected by the health of the economy is insurance. In reality, from April to November 2017, all life insurance companies’ combined new business premiums increased to Rs 1,22,937 crore from Rs 1,03,405 crore. India’s insurance market is anticipated to have rapid growth shortly. Getting involved in insurance as a career has become mainstream and every passionate individual is looking to become an insurance agent.
An insurance advisor/agent is a person who works on behalf of insurance companies to counsel clients on the range of available products. An insurance advisor not only recommends plans that are appropriate for their client’s needs but also responds to any questions clients may have about the policies and educates them on the specifics of each policy.
An insurance agent can offer a wide range of insurance products, including life, health, liability, and vehicle insurance.
Types of Insurance Consultants
Here are the different types of insurance consultants.
- Internal insurance sales agent: An insurance firm employs this insurance consultant full-time. She only consults and provides advisory services on the policies of the company for which she works.
- Captive insurance agent: An insurance agent who exclusively represents a single line of insurance products is referred to as a captive insurance agent.
- Independent broker/Point of Sales: An IRDAI-approved insurance agent who serves as a point-of-sale has the advantage of providing their client with a selection of plans from several insurance providers. Every PSOP receives a license code associated with the IRDAI, enabling them to freely collaborate with multiple businesses and sell customers multiple insurance plans at once.
Eligibility Criteria to Become an Insurance Consultant
The customer must meet a few prerequisite requirements to be eligible to work as an insurance agent.
- Education: The candidate must have completed at least the ninth standard.
- Age: The applicant must be at least 18 years old.
- IRDAI Certification: The candidate must have an IRDAI (Indian Insurance Regulatory and Development Authority) certification.
- State Licence: The insurance industry is licensed in each Indian state. To obtain a license by the state’s regulation regulations, one need only be eligible to sit for the state-level exam.
Responsibilities of an Insurance Advisor
Listed below are the prime roles and responsibilities of a life/general insurance agent-
- Establishes and maintains a clientele; seeks out new clients by word-of-mouth, advertising, direct mail, social media, group presentations, and other means.
- Consults with clients and potential clients to determine their insurance needs, financial goals, and other pertinent information.
- Offers rate estimates and advice on coverage; help with long-term planning.
- Aids in application completion and other required documents; secure underwriting approval.
- Delivers documentation for policies and plans.
- Checks in with clients regularly to see if there have been any changes in their finances, families, or other circumstances that would call for a modification of their insurance.
- Enables distributions to beneficiaries by instructions upon the policyholder’s passing.
- Executes other relevant tasks as required.
Why Should You become an Insurance Agent?
Here are the benefits of becoming an insurance advisor.
- Become your boss
The ability to work as you like is one of the main benefits of being a POSP (Point of Sales Person). You can now work for yourself!
- No time limits apply!
Depending on whether you choose to work full- or part-time, you can set your working hours.
- Working at home
It implies that you, as a POSP, can do business online while working from home.
- Only 15 hours of training
One of the key requirements for becoming a POSP is to pass the IRDAI’s 15 hours of mandatory training, which isn’t very long. All it will take for you to join is 15 hours of invested time!
- High possibility for Income
The number of policies you issue determines your income rather than the number of hours you put in. to comprehend it more fully.
- Nothing is Spent
Nothing else is necessary to become a POSP but a smartphone, a strong internet connection, and a minimum of 15 hours of training. As a result, you need to invest absolutely no money, but there is a lot of room for profit!
Skills and Qualities Required To Become an Insurance Agent
Listed below are the skills and qualities needed to become an insurance agent/advisor.
- Puts the needs of the client first
Without concern for the interests of the customer, an agent who is simply interested in earning a commission is unlikely to succeed in the industry for very long. The hardest part of an insurance advisor or broker’s job is earning the trust of their clients or potential clients. Therefore, listening intently to what they have to say can help them succeed.
- Sales expertise
Increasing policy sales is one of the primary duties of insurance agents. Agents frequently have sales goals to hit and are rewarded for doing so. Insurance agents can detect the problems their clients are facing and recommend the best possible coverage by using their sales talents.
- Communication skills
Communication is a crucial ability for insurance agents to acquire because they frequently communicate with consumers and potential customers. Both verbal and nonverbal communication skills are included in this. Effective communication enables insurance brokers to precisely comprehend client needs and recommend the best insurance options. This ability guarantees that insurance agents can accurately explain the specifics of the plans to their clients and obtain the information they need to complete the insurance forms.
- Emotional intelligence
This includes the capacity to hear customers out and empathize with them deeply to ascertain their true needs and desires. Even when a client is adamantly opposed to it, a smart agent knows how to help them see the financial realities.
- A diverse selection of goods
If all you have to work with is a hammer, everything will appear to be a nail, as the proverb goes. A smart insurance advisor will be able to provide a wide range of goods and services that can satisfy every conceivable requirement a customer may have.
Procedure To Become an Insurance Consultant
If one wants to become an insurance agent/advisor, the process below must be planned out.
- Registration: Open the website for the insurance. Find the insurance agent application and fill out the necessary information.
- Training: After that, you must complete the IRDAI-mandated foundational training, which can be done online or in person. Usually lasting 15 hours, this course can be finished in two to three days. The applicant will be given a certificate once it is finished.
- Exam for License: The candidate must pass a pre-licensing examination after completing the program to be eligible for it. This test is being administered objectively. To be eligible to become an insurance agent/advisor, one must receive at least 17 out of a possible 50 points.
- Receiving the License: The individual is now qualified to work as an insurance consultant after passing the exam. The candidate will receive a license from the IRDAI allowing them to work as qualified insurance agents.
How Much Amount Can You Earn Being An Insurance Agent?
For an insurance agent, there are no such restrictions or obstacles to financial success. It is fully dependent on each person’s potential. For each policy sold, the agent receives an insurance agent commission, and if the agent sells more policies, the commission amount may increase. The type of policies they sell and the goals the insurance salesperson hits affect the commission and revenues as well.
The earnings of an insurance agent in India can vary significantly depending on various factors such as the type of insurance products they sell, the insurance company they work for, their experience, their sales performance, and the commission structure offered by the insurance company. It’s important to note that specific figures may change over time, so it’s always best to consult with insurance companies or industry professionals for the most up-to-date information.
In India, insurance agents typically earn commissions on the policies they sell. The commission rates can vary between different insurance companies and products. As a rough estimate, insurance agents can earn commissions ranging from 10% to 40% of the premium paid by the policyholders. However, it’s important to note that these rates can vary based on the type of insurance, such as life insurance, health insurance, or general insurance.
Additionally, some insurance companies may offer performance-based incentives and bonuses to agents who achieve certain sales targets. These can provide additional earnings opportunities for insurance agents.
It’s important to understand that becoming a successful insurance agent requires hard work, dedication, and building a client base. Income potential can increase as an agent gains experience and establishes a strong network of clients.
Why Choose Probus Insurance To become an Insurance Agent/Advisor?
- Wide Range of Products
Several insurance products protecting different types of assets are available from Probus Insurance. For instance, we discuss a variety of topics, including home, travel, motor (auto, two-wheeler, commercial vehicles), and health.
- Simpler insurance
All of the documentation from Probus Insurance is so simple that even teens can read them because the company is dedicated to making insurance simpler.
- Strong Backend Assistance
With technology as its major tenet, Probus provides you with a committed support team, a cutting-edge web & mobile app, and the ability to sell whenever you want!
- Zero-Touch Insurance
Since there is zero paper involved in any operation, everything is done online. Customers prefer it, and it works well for you and your time. It’s a win-win situation!
- Immediate Policy Issue
Not a lot of drawn-out processes or paperwork. The organization conveniently and instantly issues insurance coverage online.
- Quick Commission Payment
You’re insured, so don’t worry! All commissions are swiftly paid. Every 15 days following the issue of the policy, your account will be credited with your commission.
Tips on Being a Good Insurance Advisor
Upskilling oneself is usually a smart idea because market conditions change frequently. In the modern world, selling insurance, whether as full- or part-time employment, is a very valuable skill. The training to become an agent is simple, and the job itself doesn’t require you to sit at a desk for eight hours every day. When speaking with your customer, make sure to look for areas of agreement if you want to become an excellent insurance consultant. After establishing a rapport, build your pitch by piquing their interest in what you have to say.
Knowing about policies is frequently insufficient. A good insurance advisor keeps up with the most recent news articles, are knowledgeable about the political and social landscape, and is skilled with numbers. The capacity to locate a solid client-product fit as well as one’s pitch can both be strengthened by each of these. Finally, a skilled insurance agent has access to modern marketing resources. The insurance agent should be a wealth of knowledge and resources so the client may learn as much as they can about an insurance policy. This includes providing clients with electronic brochures and forwarding website links as needed.
Frequently Asked Questions:
Listed below are the frequently asked questions to consider if someone wants to become an insurance agent/advisor.
Yes, you must finish the program to become a POSP. It will cover a variety of subjects, such as insurance fundamentals, different types of policies, the issuance and claims processes, rules and regulations, etc.
After certification, you might want to register in one of POSPs’ extended training programs. They assist in expanding your insurance understanding and upgrading your selling and customer service abilities. The following topics will be covered by these training courses and events:
- Maintain up-to-date knowledge of the newest insurance products and how to sell them
- Possess advanced insurance understanding to manage complex cases.
- Easy and entertaining ways to learn different selling techniques that boost your sales
Yes, TDS applies to all paid commissions. Based on your PAN card, TDS is credited to the income tax authorities.
Insurance consultants promote insurance firms and help their clients purchase the insurance coverage these firms provide.
If an insurance agent knows how to draw clients and close deals, s(h)e can earn a lot of money.
No, having a degree is not required. However, having some foundational academic successes will help you interact with them more effectively.
If you meet the requirements, you can become an insurance advisor without having any prior sales experience. If you do, though, it may help you grasp the job function if you do have the experience.
For both fresh and seasoned professionals, beginning a career as a life advisor in India is an exciting and alluring option. Even stay-at-home mums, college grads, and retirees can generate a reliable income while establishing a reputation as a “people’s person.”
An insurance advisor receives generous incentives and commision from the insurance industry based on their sales performance.
Based on your performance, you have a decent chance to earn additional money. In the modern world, achieving a work-life balance is crucial to our happiness. However, juggling work and home obligations can be challenging when working in a corporate setting. Therefore, a lot of people like working for themselves as opposed to others who need them to work certain hours. One such employment possibility in India is as a life advisor, where you have complete control over the hours and compensation you receive.
In India, obtaining a permit to practice life insurance or general insurance, or both is possible. The ability to represent any life insurance company, non-life insurance (or general) company, health insurance company, Export Credit Guarantee Corporation of India (to sell credit insurance), and even Agriculture Insurance Company of India (to sell crop insurance) comes with being an agent in India.
Yes, if you have become an insurance agent, then you can sell whatever insurance policy you want, including life, motor, health, and more.
Yes, working under a broker is possible if the agent is new and wants to reach new heights in this profession.
