POSP Insurance agent is a professional insurance agent that acts as a mediator between the insurance company and the customer. It bridges the gap and makes one acquainted with several insurance policies available.
The expert has immense knowledge of the insurance sector and strives to get the best policies for the benefit of the customers. A POSP Agent understands the exact requirement of the client, insurance objectives, and finance goals. This overall analysis and evaluation enable the professional to advise and suggest the best insurance plan or policy.
Perks of choosing the career as a POSP Insurance Agent
People choose their career as a POSP agent due to various benefits associated with it.
- As a financial agent and insurance agent, one will get immense exposure.
- Along with commission and monetary benefit one will also get an opportunity to build their network.
- The rewards and recognitions that one can earn in this profession are humongous.
- There is a free will to work and no stringent work schedules when you work as a POSP insurance agent.
- The training and back-end support that gets from the insurance company allows one to groom themselves and recommend the best policies.
- A POSP Insurance agent gets access to a wide range of products and insurance policies. This includes everything right from health-related insurance plans to general insurance and non-health-related insurance plans.
- The monetary investment for a POSP insurance agent is close to zero. All one needs is a smartphone, laptop and a good internet connection to complete the training and become an insurance agent.
Steps to become a POSP Insurance Agent
The IRDAI (Insurance Regulatory and Department Authority of India) has set some rules and regulations to become an insurance agent. To become an agent one must complete the specific insurance training and appear for the POSP certification exam.
However, the process for POSP Insurance agents is intricate. It involves lots of documentation and meeting qualifying criteria. The person needs to comprehend the eligibility criteria first. Every insurance company has a different standard to enrol an insurance agent. Understanding the same is vital.
After meeting the qualifying principles as given by the insurance company. The individual will have to submit the necessary documents and KYC details. Once you submit all the significant documents with the insurance company you move on to the next step which is Training.
To become a POSP insurance agent one must undergo specific training for a definite duration. The training module and duration for the same depends upon the type of insurance agency. The training is generally classroom training which one must take offline.
Post the completion of training, one will have to appear for the POSP exam. The examination is held as per the prescriptions and guidelines from IRDA.
Clearing the POSP exam is one of the fundamental criteria to qualify as an insurance agent. Once an individual processes the formalities for the POSP exam and clears the same, one can become an insurance advisor and commence their professional journey.
The eligibility and process for POSP Insurance advisor certification
The IRDAI has penned down two specific eligibility criteria to qualify for POP insurance advisor.
This includes:
- A person should be at least 18 years old to become an insurance advisor.
- The education qualification of the aspirant must be at least class 10.
Anyone who meets the basic criteria by IRDA can become an insurance advisor or advisor as a POSP. Moreover, the insurance industry is expansive. It is growing at an enormous rate. It also offers job opportunities to freshers and amateurs. Anyone right from graduates, part-time working professionals, college studies to housewives can become a POSP Insurance Advisor.
However, apart from the basic criteria, one needs to follow a stepwise process and clear the POSP insurance exam. After clearing the exam one gets the certification and authority to work as an insurance advisor.
Why is PoSP certification the best way to become an insurance advisor?
The POSP Insurance license is a mandatory license for insurance advisors as per IRDAI. The regulatory body has made it compulsory to have the POPS license for all the insurance advisors and advisors.
The motive of introducing a POSP license is to give more flexibility and convenience to the insurance advisors. The insurance advisors with POSP licenses and certification can freely work with multiple insurance companies. They can suggest the best insurance policies across health and non-health categories such as term insurance, endowment life, motor, home, travel, and much more.
The exposure to multiple insurance plans and policies allows a POSP insurance advisor to suggest the most suitable lucrative insurance policy to a prospective client. It gives one the ability to offer a bouquet of products instead of suggesting only the products of a single insurance company. Thereby, positively impacting the career and growth of an insurance advisor.
The POSP insurance certification concept is wide and worthwhile. It overcomes the limitations of traditional insurance agencies. It is more client-centric and carves a distinction for the professionals in their advisory careers.
How much does a POSP insurance advisor earn?
An insurance advisor earns a commission of the premium and policy sold. The commission rates depend upon the structure of the insurance plan. Every insurance plan is different so is its commission rate. However, a POSP insurance advisor can earn a commission ranging from around 5% to 30% of the premium paid by the client. This may vary depending upon the insurance company and its policies.
Besides commission on the first year premium of the insurance policy. An insurance advisor also gets renewal commissions. The slabs and rates for renewal commissions depend upon various factors such as the insurance company, type of insurance plan, coverage, and much more.
Also, every insurance company designs various rewards and recognition programs to motivate the insurance advisors. These programs allow insurance advisors to earn extra commission in the form of gifts, vouchers, incentives, and even international trips.
The key takeaway
A POSP insurance advisor has great career potential. It allows one to enjoy the freedom to work at one’s convenience and comfort zone. A POSP insurance advisor can craft its own path to success and achieve newer milestones. The high earning potential of the insurance sector is one of the key highlights of this profession. However, to work as an insurance advisor. One needs to get the license and authorization.
And as per the rules of IRDAI, one needs to compulsorily appear and clear the POSP insurance exam to get the professional license and work as an insurance advisor.
FAQs
- What is POSP certification?
POSP stands for point of sale person. A POSP Certification allows an individual to sell policies of various insurance companies. The insurance policies can belong to the health as well as non-health category.
- Do I have to take up training for PSOP Certificate?
Yes, to get POSP certification one needs to appear for the POSP Certification exam and clear the same.
- How to Clear POSP Exam?
To clear the POSP exam one needs to fulfill all the criteria mention as well as secure passing marks in the POSP certification exam.
- How do you become Posp certified?
You can get the POPS certification and certify yourself as a professional POSP insurance agent by clearing the POSP Certification exam.