Does the career of an insurance agent attract you? Do you want to pursue it? Then, you are at the right page. The insurance agents work in the insurance sector of India as certified and trained professionals. Their key job is to suggest insurance policies to their clients as per their needs and goals. Generally, the individuals who are self-motivated, are good in communication and possess some digital skills, qualify to be an insurance agent. For a successful insurance agent, it is important to successfully close deals and create a rich customer base for themselves. If you aspire to become an insurance agent and grow your career, it will be ideal for you to understand the role thoroughly along with the eligibility, selection process, benefits and the process of insurance agent registration. Read on to know all these details here in this blog.
What does an insurance agent do?
The insurance agents work as an important connection between the policy holders/ potential customers and the insurance providing company. Their key role is to understand the profile of the customer, assess the risk that they face, and match their insurance requirement to the products available in the market. The insurance agents explain to them the features and benefits of the insurance products available in the market. They ensure that their client gets the maximum benefits and coverage of the insurance policy at the best price possible. They become the long term partner of their clients to help them stay protected against the unpredictability of life. Once the client shows interest in the insurance product, the insurance agent works to make the whole onboarding process easier and hassle free. They help their clients in filling out the forms with correct details, responsibly settle all the claims, keep their clients updated about any changes or updates.
Here are some of the job functions of insurance agents:
- To understand the client’s business in detail and the risks that surround it.
- To take in the information about the client’s business in detail so that it can be explained well to the insurer when required.
- To explain the relevant insurance products and provide advice on the right choice of insurance cover and terms & conditions involved.
- Being aware about the insurance products available in the market.
- To submit quotations received from a single or multiple insurers for the understanding and consideration of a client.
- To provide the required underwriting information.
- To act immediately on the requests from the clients and provide them updates and progress reports
- To provide assistance to clients in paying premium, as required.
- To help the clients in the negotiation of the claims.
- To maintain proper records of their premium payments and claims.
- To help them open their e-insurance accounts.
- To help them issuing their e-insurance policies, as required.
The types of insurance agents
There are mainly two types of insurance agents working in the industry.
Captive Insurance Agent
A Captive Insurance Agent is exclusively affiliated with one insurance company, which is generally a renowned national insurance provider, such as National Insurance Agent or LIC Insurance Agent. As per the rules, these agents are not permitted to sell insurance policies belonging to their competition insurance companies in the market.
Point of Sales in Insurance or PoSP
A Point of Sales in Insurance is someone who is not just dedicated to one insurance provider company but works with more than one insurance company. The PoSP agent helps his or her clients with quotes on insurance policy from multiple companies and helps them take a decision on best policy and prices.
Are you eligible for insurance agent registration
No matter if you are a student, a homemaker, a businessman, or a retired professional, you can become an insurance agent by fulfilling the required criteria. Those who already have a full time job, can also take up the insurance work as a part time gig. As per the guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI), the minimum age for initiating your insurance agent registration is 18 years. One has to be at least 10th standard pass or clear any other exam that is equivalent to Class 10 from a recognised Board or Institution.
The insurance agents need the necessary educational qualifications and soft skills that can make them efficient at their job. Their abilities and skills will decide whether they can drive revenue for the insurance companies, themselves and bring value to the client. They need to operate within the rules and regulations set up by the regulatory authority. While the educational qualifications and digital skills can be obtained by courses or undergoing training, one can develop communication skills, soft skills and people skills over time, working in the industry. It is important for the insurance agents to work on their own personal brand and create a USP in the market to build their customer base. They can not just depend on the name of the insurance company to grow their career.
The step-by-step process to become an insurance agent
The type
First of all, you need to decide about the type of insurance agent that you want to become. Consider the benefits and challenges of becoming a Captive Insurance Agent or a PoSP agent. Evaluate your options and then take the decision accordingly. You can also work as a PoSP agent with a trusted brand like Religare and sell policies of multiple partner companies under their umbrella.
Identify the insurance company
The second important step is to do thorough research about the insurance companies present in the insurance landscape in India. One should understand their insurance products, their offerings, their track record, credibility, financial situation, etc. Choose an insurance provider that will treat you like a partner and offer you considerable benefits to build a lucrative career.
Check all the points under eligibility criteria
The basic criteria of becoming an insurance agent is to be over 18 years of age and having passed at least 10th standard or any equivalent education qualification. However, different insurance providers may have different eligibility criteria for the agents to fulfill. It is important to read about and understand all the criteria demanded by the insurance company.
Complete the mandatory training
Once the eligibility criteria is met, the next step is to undergo a basic but mandatory 15-hour long training as determined by the IRDAI. It is available in both online and offline modes. The candidate can choose their preferred medium and undergo the training. Once the training is successfully completed, the candidate will receive the certification as an insurance agent.
Pass the exam
After the training is complete, one needs to take a pre-licensing exam to successfully complete the insurance agent registration. The preliminary exam is conducted online by IRDAI. The pattern is objective and the total time is 90 minutes. In order to pass the exam successfully, the candidate needs to score at least 17 marks out of the total 50 marks.
Obtain your license
With the successful completion of the training and the exam, you need to wait for the company’s approval to get your license from IRDAI.
Kickstart your career
Now that you have in hand your license to operate as a certified insurance agent, kickstart your career. It is recommended to start working on building your network base from day one, staying updated on the insurance products available in the market, the latest trends, regulatory guidelines and updates etc.
Frequently asked questions about how to become an insurance agent
What are the benefits of having Insurance Agent Registration?
An insurance agent can start working at an early age of 18 till the age of 55. They can work independently and enjoy flexibility in their work style. There is no investment required to work as an insurance agent. They can build a stable income and earn as much as they want to.
What are the key qualities that make a good insurance agent?
A good and successful insurance agent needs to have several qualities that make them unique from the competition in the market. Some of the must-have qualities are people skills, good customer service, emotional intelligence, good communication skills, high energy level, persistence, honesty, awareness and more.
What are the challenges that one may have to face as an insurance agent?
Once you will start your professional journey as an insurance agent, you will understand that it is not an easy job at all. One needs to be prepared about high rates of customer rejection, stress and the need to upgrade oneself from time to time. Those who can brace for these challenges successfully can go far in their career.
Is it difficult to pass the insurance agent mandatory exam?
The preliminary online exam is of 90 minutes, covering a total 160 marks and carrying 160 objective questions. The questions are 40 in number each from the fields of Reasoning, English Language, General Awareness and Quantitative Aptitude. With the right amount of learning, attending training and taking out time to prepare oneself for the IRDAI exam, one can successfully pass the exam.
What are the scenarios under which my request for insurance agent registration can be rejected?
The authorities can reject your application to become an insurance agent if they believe that the applicant has not completed the essential requirements and is not eligible to operate. The authority then communicates the refusal status on Insurance broker license to the applicant. After knowing the status, the applicant is free to make another application by making the necessary adjustments, but only after one year of rejection of the application.