The insurance sector in India, despite its rapid growth, faces significant challenges in reaching the vast and diverse population of the country. A large segment of the population remains underinsured or uninsured, primarily due to a lack of awareness, accessibility issues, and the complexity of insurance products. In this context, Point of Sales Persons (POSPs) have emerged as a crucial link in bridging the insurance gap in India.
Understanding POSPs
Point of Sales Persons (POSPs) are individuals authorized by insurance companies to sell certain insurance products. They undergo a specific training program and certification process that equips them with the knowledge and skills to offer insurance products to consumers. POSPs can sell both life and non-life insurance products, including health insurance, motor insurance, and personal accident insurance, among others.
The Insurance Gap in India
India’s insurance penetration, measured as the ratio of premium underwritten in a given year to the gross domestic product (GDP), stands at a mere 3.76% as of 2023. This figure is significantly lower than the global average, indicating a substantial insurance gap. Several factors contribute to this gap:
- Lack of Awareness: Many individuals, especially in rural areas, are unaware of the benefits of insurance and the types of products available.
- Accessibility Issues: Traditional insurance distribution channels often fail to reach remote and underserved areas.
- Complexity of Products: The intricacy of insurance products and jargon can be daunting for the average consumer.
- Economic Constraints: For a significant portion of the population, affordability remains a major concern.
