Arun Sharma is a successful POSP agent working in Delhi NCR for about 20 years now. He always recommends becoming an insurance agent as a great career choice, whether it is for a homemaker, a student, a businessman or someone with a full time job looking for some extra income. The reason? It is a wise decision to be a part of a large & fast-growing sector that can promise you tremendous growth opportunities.
India is the fifth largest emerging life insurance market that is growing at an impressive rate of 32-34% each year. Further India is the tenth largest life insurance market globally, with a share of about 1.9%. It is expected to cross the total business of worth about US $200 billion by the year 2026, as per an estimate of Insurance Regulatory and Development Authority of India (IRDAI). This directly highlights the fact that in the coming years, there will be good demand for the insurance agent registration and hirings by the leading insurance providers.
If you are thinking about making a career as an insurance agent and knowing about what are the types of benefits that you will be able to enjoy as an insurance agent in your career, read on to know every detail here.
10 Benefits of Becoming Insurance Agent in India
An insurance agent is a valuable link between the policy holder (customer) and the insurance providing companies. He is the one who understands the needs of clients and suggests suitable insurance products analysing the benefits as well as budget. The insurance agents not only drive the revenue of the insurance company but also earn commissions for the products that they sell. The agents manage all kinds of different tasks on a daily basis such as risk assessment, underwriting, policy preparation and delivery, maintenance of policy records, connecting with customers, communicating them updates, addressing their grievances and more.
In return for their valuable services, insurance agents enjoy several perks and benefits for building their career in the insurance sector. Here is a quick look at some of the insurance agent benefits in India -–
Work from an early age
In most of the other professions in India, one has to acquire specialised educational qualifications, which takes several years after completing the age of 18. However, in order to become a PoSP insurance agent, one can start right after they turn the age of 18. This is the minimum age qualification as decided by the IRDAI. Therefore, for those who are looking forward to becoming independent and start earning soon after they enter adulthood, the career as an insurance POSP agent is indeed a promising choice. In order to be successful as an insurance agent, all you need to have is dedication and passion for your job and a zeal to close sales.
Zero investment
You do not require an investment of lakhs of rupees to set up shop as an insurance agent. You just need to begin with your insurance agent registration, take up the mandatory training, pass the exam conducted by the IRDAI. If all goes well, you will be soon eligible to start working as an insurance agent. The only investment that you need to make is of your own time and effort. The difficulty level of the exam is quite basic.
A low entry barrier
Other than the fact that the entry age is as low as 18 for becoming an insurance POSP agent in India, it also doesn’t require years of experience or extensive education. All you need to do to become eligible for insurance agent registration is to complete high school and undergo a few hours’ training. After that it is important to prepare for the IRDAI preliminary exam. The low entry barriers are quite beneficial for career aspirants as they can start their career with basic education.
Personal satisfaction by helping others
Helping others by providing them with the right guidance is the key job of the insurance agents. Whether it is about getting someone the right term insurance policy or helping them with the insurance of their home or car, an insurance agent adds value to other people’s lives. Other than generating revenue and earning money, there will be an overwhelming feeling of satisfaction filling your heart. The joy of helping people and their families with the right insurance that keeps them covered throughout life and also after that, will always keep you motivated. Over time, the relationship with your clients strengthens with trust and respect.
Flexible work timings
Another significant benefit of becoming an insurance agent is that this job comes with a flexible working schedule. You can change and update your work timings as they are suitable for you. Be it working from home or from office, part time or full time, you have the liberty to create a work life balance. You can fix your appointments as per your convenience during the day. There is no limitation of working in a strict 9 AM-to-5 PM work schedule. One can easily manage their family, business, part time job or any other occupation by working as an insurance agent.
Learning profession
The insurance sector is a fast evolving sector. Therefore, there are many opportunities for you to keep learning from the experts of the inside and grow in your career. With online learning tools and platforms, learning can be at your convenience. There are online courses that you can undergo and improve your knowledge and portfolio. While working with a reputed insurance provider, you will have many opportunities to build your professional and soft skills. There are several expert-led training and development programs, such as webinar or e-learning courses, for the benefit of the agents. Also, your learning attitude and interest to stay updated about the latest trends and changing preferences in the industry, will definitely take you far ahead in your career.
Digital ease
With the world turning digital, how can the insurance sector be left behind? Gone are the days when insurance agents had to carry policy dossiers around or fill long and tedious forms manually. They have the policy brochures and forms available to them at a few clicks. They just need to carry their laptop or tablet to meet the client, or schedule appointments or complete the formalities. There are digital platforms being created through which an insurance agent can instantly submit their clients’ details for the insurance provider company to process.
Rewards and recognition
Getting due recognition and reward for the hard work and time that you invest in your profession is indeed highly motivating. In the insurance sector, there are several associations and bodies that organise annual events and award functions to felicitate and honour the insurance agents. FICCI Insurance Industry Awards recognises excellence in the sector. A leading insurance company has recently started organising the General Insurance Festival of India (GIFI) to felicitate top-rated agents selling general insurance. Another example can be of India Insurance Summit & Awards, an annual 2-day long summit, which brings together experts, agents and innovators of the insurance sector. These award events recognise the top perming agents from various fields.
Stable income
The insurance sector is growing strongly each year. There is still a lot of unrealised potential in the market. Once you will start working as an insurance agent, you will realise that your income will only be dependent on the kind of effort that you put in on building your client network. The more clients you will earn, the more stable your monthly income will be. You will not only earn at the time of selling the insurance policy, but also at the time of policy renewal as well, which may run up to several decades. Moreover, with IRDAI’s mission of ‘‘Insurance for All’ by 2047, the reach of insurance products is expected to grow. This will ensure lots of opportunities and ease of doing business for the insurance agents.
Strong sector
You can not overlook the benefits of working in the promising insurance sector that has played a key role for the growth and steadiness of the Indian economy. Growing at an impressive rate of about 33% y-o-y, the life insurance market is dominated by Life Insurance Corporation or LIC, the only public sector player that holds about 60% share of the market. The rest of the market has about 24 players. On the other hand, India’s general insurance sector that covers motor, property, etc is about the fourteenth-largest general insurance market in the world. As a POSP agent, you play a key player for servicing general insurance products.
Over the past several decades, the insurance sector has achieved growth and significant transformation, year on year, mainly due to necessary regulatory reforms. Especially after COVID-19 pandemic, it has been seen that the latest technologies have been adopted by insurance companies and their agents. On the other hand, the awareness and alertness on the consumer’s part has also improved. These developments are strengthening the core of the sector and will help it to flourish in the near future. It is encouraging to learn about IRDAI’s prediction that the total premium will grow at the rate of about 7% as compared to the global average of 2.4% by 2028. According to the Swiss Re Group, one of leading reinsurance and insurance providers globally, the Indian insurance sector is predicted to grow the fastest out of the other G20 countries. The future holds the promise of several growth opportunities for the different stakeholders of the sector, by overcoming the challenges innovatively.
Summing up
So, if you are looking for a career where you can work with flexibility, define your own timings and earnings and be of help for others, working as an insurance agent can be the best choice for you.
The top 10 insurance agent benefits that we have discussed here should be a good motivation to initiate insurance agent registration and have a sterling career. e Study
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