Full Form of POSP – How to Become POSP ?

Full Form of POSP – How to Become POSP ?

Are you planning to work as an insurance advisor? Well, insurance is one of the fastest-growing sectors. With the introduction of a multitude of elements, the domain is witnessing considerable growth and success. Thus, the career opportunities and prospects in this sector are enticing.  

To become a certified insurance advisor, it is essential to understand a few technicalities and the basics of it. Deep knowledge of insurance workflow and agent systems will help you to shape your career accordingly.

Who is a POSP Insurance Agent?

POSP is the latest insurance license type for insurance advisors. As per the current rules of IRDAI (Insurance Regulatory Development Authority of India), a person willing to work as an insurance agent must have a professional POSP license. The license gives one the authority and certification too. 

A POSP insurance agent is not abided by a single insurance company. A POSP insurance license allows one to sell insurance plans and policies of different insurance companies. It allows one to broaden the horizons of mind and introduce clients to the most advantageous insurance plan. 

Being a POSP insurance agent one can offer a bouquet of health and non-health insurance plans to the clients. One will have access to all types of insurance plans right from the endowment insurance plan, travel plan, ULIP, term life, and much more.

Thus, the POSP insurance license breaks all the barriers for the insurance agents. It allows them to focus on the sales as well as the benefit of the client. Moreover, POSP insurance certification is overcoming all the limitations of the traditional insurance agent system. 

An individual with an aspiration to make it big in the insurance sector and scale the ladder of success must apply for a POSP insurance license.

How to get POSP Certification?

To become a POSP Insurance agent one needs to follow the stepwise process and meet all the guidelines. 

• The minimum age limit to become a POSP insurance agent is 18 years. Any individual above 18 years of age can apply for POSP certification. 
• The minimum qualification for POSP certification is SSC from a state board or approved university. 

Any individual who meets the above-mentioned criteria can apply for the POSP certification exam. The POSP exam can be given by anyone right from freshers, college students, housewives, professionals working part-time, businessmen, etc. 

However, to get the POSP certification it is mandatory to complete a specific training within the set duration and clear the written exam.

The procedure to become POSP Insurance Agent:

• Check the qualifying criteria set by IRDAI.
• If you qualify by meeting the basic requirements, you move on to the next step which is submitting documents. One will have to now submit KYC documents to the insurance company as well as fill the form.
• Post the approval of  KYC documents and personal details, the insurance company will contact the person to explain the training process.
• To become a POSP insurance agent, it is mandatory to undergo professional training from an insurance company. The training module and duration may vary depending upon the company and its rules.
• The training for POSP insurance agents is generally classroom training. The training involves both theoretical knowledge, practical impactions, and reviewing of case studies.
• After completing the training, one can appear for the POSP certification exam. IRDAI drafts the design and format of the POSP insurance license exam.
• To clear the POSP exam, one must obtain minimum scores as stated by IRDAI.

The POSP insurance exam is one of the fundamental criteria that one needs to complete to obtain the POSP Insurance agent license. One can only commence a professional journey as an authorized POSP insurance agent after the completion of training and passing the POSP exam.

Benefits of working as a POSP Insurance Agent

• No stringent work timings: one of the greatest benefits of being a POSP agent is that you get to work at your convenience. You are your boss and can manage everything right from your comfort zone. Your revenue solely depends upon the conversion rates and lead generation. You also get the liberty to decide whether you want to work as a full-time or a part-time insurance agent.

• Work from Home: A POSP Insurance agent can work from home and manage everything without any hectic travel or commute. One can also utilize the online sales process to complete the sales procedure.

• Flexibility: POSP Insurance agents enjoy considerable flexibility. They are free to sell insurance policies from multiple insurance companies. Apart from this, one can also avail the liberty to start a new venture side by side by working as a POSP insurance agent. 

• Set Commissions: The commission that a POSP agent earns is set by the regulators. Hence, a certified POSP insurance agent can get a stable income flow. Being regulated by an authority body there is considerable transparency in the commission system as well as payouts.

•  Zero investment: A POSP Agent can start an independent career as an insurance advisor without any major investment. There is no need for investment. All it requires is just a few basic resources such as a computer or laptop, a stable internet connection, and a smartphone to set the ball rolling.

• Network: When you work as a POSP insurance agent you are a part of the insurance community. You get to meet fellow POSP insurance agents on several occasions and events. This allows you to expand your network and broaden your knowledge. Moreover, IRDAI supports its POSP insurance agents and advisors by regularly conducting workshops, seminars, conferences, etc.

• No retirement limit: Private jobs and government jobs do have some prescribed retirement limits. Whereas, as a POSP insurance agent you can continue to work for life as long as you have the willingness and passion to work.

FAQs

1. What is the full form of POSP

The full form of POSP is Point of Sale Person. A POSP insurance agent can sell insurance policies of various insurance companies. It has the authority to work as a professional insurance agent and offer the best insurance plans to clients.

2. How do you become a POSP?

To become a POSP one has to undergo specific training and appear for the POSP exam as well. Post the completion of training and clearing the exam, one gets POSP certification.

3. What is the commission of POSP? 

The commission of a POSP insurance agent depends on several factors such as type of insurance plan, insurance company, the reputation of the insurance agents, performance reviews, and much more

4. What are the products that can be sold by POSP?

A POSP insurance agent can sell insurance plans and policies from multiple vendors. One can sell health and no health-related policies. However, the commission rate on the premium and insurance policy sell may differ depending upon the company and type of policy. 

• Some vital policers that can be sold by a certified POSP include: 
• Travel insurance policy 
• Personal accident policy
• Home insurance policy
• Term Life Policy
• Mediclaim Policy
• Comprehensive Policy for two wheeler, four-wheeler, or commercial vehicles
• Third-party liability policy for two wheeler, four-wheeler, or commercial vehicles
• Any other policy approved by IRDAI

5. How can you become a Nivesh Insurance POSP Agent? 

Becoming a POSP with Nivesh Insurance is simple and can be completed in few steps:

Step1: Register yourself online

Step 2: Undertake online training

Step 3: Pass the online examination

Step 4: Receive the certificate to work as POSP with Nivesh Insurance

Step 5: Start selling insurance products to your customers