The insurance industry offers various career opportunities, with two prominent roles being the traditional insurance agent and the Point of Sale Person (POSP). While both positions involve selling insurance products, they differ in terms of licensing requirements, scope of work, responsibilities, and career growth opportunities. Understanding these differences is crucial for individuals looking to build a career in insurance, as the choice between becoming an insurance agent or a POSP insurance agent can significantly influence their career trajectory and earning potential.

This article explores the nuances of both roles, explaining how to become an insurance agent and and the process of becoming a POSP insurance agent and what sets these two career paths apart.

Traditional Insurance Agent: An Overview

An insurance agent serves as a licensed professional who acts as an intermediary between insurance companies and clients. They provide advice, help clients select the right insurance policies, and assist with claim processes. Their primary goal is to ensure clients have the appropriate coverage for their specific needs.

How to Become an Agent

The process to become an insurance agent involves several key steps:

1. Educational Qualification: Most insurance companies prefer candidates who have at least a high school diploma or equivalent. However, a finance, business, or marketing background can be beneficial for understanding insurance products and regulations.
2. Licensing Requirements: To become a licensed insurance agent in India, candidates must pass the Insurance Regulatory and Development Authority of India (IRDAI) licensing exam. This certification is crucial as it allows the individual to sell insurance products legally. The exam covers various topics, including insurance principles, regulations, ethics, and the specifics of life, health, and general insurance.
3. Training Programs: After passing the IRDAI exam, aspiring agents undergo a mandatory training program, which insurance companies or accredited institutes conduct. This training equips them with the necessary knowledge and skills to sell insurance products effectively.
4. Registration with an Insurance Company: Agents typically partner with one or more insurance companies to sell their products after obtaining the license. This partnership allows agents to offer a wide range of policies and build a diverse client base.
5. Continuous Education: Insurance is a dynamic industry with frequent regulatory changes and new products. To remain licensed, agents often need to complete ongoing education requirements, ensuring they stay informed about industry trends and updates.

Benefits of Becoming an Insurance Agent

• Diverse Product Range: As an insurance agent, you can sell various types of insurance policies, including health, life, motor, and property insurance. This diversity allows for broader career growth and earning potential.
• Client Relationships: Traditional insurance agents build long-term relationships with clients, providing personalized service and advice tailored to each client’s unique needs.
• Professional Growth: Becoming an insurance agent opens up opportunities for career advancement, including roles such as senior advisors, managers, or even establishing your own insurance agency.

POSP Insurance Agent: An Overview

A point-of-sale person (POSP) insurance agent is a newer role in the insurance sector designed to simplify the process of selling insurance. POSP agents primarily focus on selling pre-underwritten and straightforward insurance products such as health, motor, and travel policies. The POSP insurance agent model was introduced to increase insurance penetration by making the process of becoming an agent more accessible.

How to Become a POSP Insurance Agent

The process of becoming a POSP insurance agent is generally simpler and quicker than becoming a traditional insurance agent:

1. Basic Qualifications: Unlike traditional agents, the educational qualifications for a POSP are less stringent. In most cases, candidates must have completed their 10th-grade education to be eligible.
2. Training Program: Candidates need to complete a short training program provided by the insurance company. The training usually lasts around 15 hours and covers the basics of insurance products, sales techniques, and regulatory guidelines. This streamlined training process allows individuals to start their careers as POSP agents relatively quickly.
3. Registration with an Insurance Company: After completing the training, candidates register as a POSP insurance agent with an insurance company. This registration allows them to sell specific, simple insurance products provided by the company.
4. Digital Tools: POSP agents primarily use online platforms and mobile applications to sell insurance. This digital focus means that POSPs can operate with greater flexibility and often target customers through online channels.

Benefits of Becoming a POSP Insurance Agent

• Quick Start: The training and certification process for POSP agent is much shorter, allowing individuals to start their insurance careers faster than traditional agents.
• Digital Sales: POSP agents leverage digital tools and platforms to sell insurance products, making it easier to reach a wider audience.
• Flexible Work Model: The POSP model allows agents to work part-time or alongside other jobs, offering greater flexibility and work-life balance.

Key Differences Between an Insurance Agent and a POSP Insurance Agent

1. Licensing and Training: The most notable difference is the licensing requirements. Traditional insurance agents must pass the IRDAI exam and undergo comprehensive training, while POSP insurance agents need to complete a shorter training program provided by insurance companies.
2. Scope of Products: Traditional agents can sell a broad range of insurance products, including complex policies like life insurance and investment-linked products. In contrast, POSPs are typically restricted to selling pre-underwritten, straightforward products like health, motor, and travel insurance.
3. Client Interaction: Traditional agents often focus on building long-term client relationships and providing personalized advice. POSP agents, however, usually operate through digital channels and focus on quick, transactional sales.
4. Career Growth: Becoming a traditional insurance agent offers more opportunities for professional growth, including roles in management or the option to establish an independent agency. The POSP model is generally more limited in terms of upward mobility within the industry.

Which Path is Right for You?

Choosing between becoming a traditional insurance agent and a POSP insurance agent depends on your career goals, the level of commitment you’re willing to make, and your preferred work style.

• If you aim for a long-term career in insurance, enjoy building client relationships, and are willing to undergo more extensive training, the traditional insurance agent role might be more suitable.
• If you prefer a more flexible work model, wish to start your insurance career quickly, or are looking for a part-time role, becoming a POSP insurance agent could be a better fit.

Final Thoughts

Ready to explore a rewarding career in insurance? Whether you want to become an insurance agent or a POSP insurance agent, Niva Bupa offers the support, training, and resources you need to succeed. Connect with them today and take the first step toward a fulfilling career in the insurance industry!