How to Become an Insurance Agent
Are you looking to make a prominent career in the insurance industry? Pursuing the career path of an insurance agent can be the right choice for you. Insurance agents sell a variety of insurance policies, such as health insurance, travel insurance, motor insurance, home insurance, and so on, to prospective policyholders. They also act as advisors to help buyers select a suitable policy as per their needs. You can work as an insurance agent even though you may already have a job if you are looking for extra income. Wondering how to become an insurance agent? Do read on.
Who is an Insurance Agent?
An insurance agent is a representative of an insurance company, working with it to sell its insurance products to potential policyholders. For the buyer, the insurance agent is the primary point of contact with the insurance provider. The insurance agent is not only concerned with selling insurance plans to the buyer, but also with advising them in selecting the right policy. In most cases, it is to the insurance agent that the policyholder reaches out first to resolve queries or get their doubts cleared.
Depending on the insurance provider, an agent can sell health insurance, home insurance, travel insurance, business insurance, and various other types of miscellaneous insurance plans.
Types of Insurance Agents
Internal insurance agent
An internal agent is someone who works full time at an insurance company and is dedicated to promoting and selling their insurance plans only. They do not promote or sell the insurance policies of other insurance providers. In most cases, such agents earn on a salary basis as compared to on a commission basis.
Independent insurance agents or brokers
Independent insurance agents or brokers are not affiliated with a single insurance company. Rather, an independent agent provides a wide variety of insurance policies from different insurers. They also help the customer reach a better, well-informed decision by understanding their coverage needs and offering customisable policies as per the customer’s exact needs.
PoSP insurance agent
A PoSP (Point of Salesperson) is a type of insurance agent who sells basic, pre-underwritten insurance policies. These policies are approved by the IRDAI for sale, specifically through PoSPs. A PoSP agent cannot sell policies that are high-risk or have a large sum assured amount.
Also Read: Insurance PoSP vs Agent - What’s the difference?
Why should you become an Insurance Agent?
There are various benefits to being an insurance agent, such as:
Flexible working hours
As an insurance agent, you can work as per the time frame that you find comfortable. Though this feature may not apply to full-time insurance agents, an independent agent can sell insurance policies whenever and wherever they see a prospect.
No upper limit on earnings
There is no limit to how many insurance policies you can sell, and thus no limits to how much you can earn. The more policies you sell, the higher you earn.
Zero monetary investment
You do not need to invest any money to become an insurance agent. All you will need is a cell phone, a good internet connection, and determination.
How to become an Insurance Agent
Now that you know the benefits of being an insurance agent, you must be wondering how to become an insurance agent in India. Again, read on.
Reach out to the IRDAI or an insurance provider
You can sign up to become an insurance agent by visiting the IRDAI’s site. You will have to fill out a simple form, provide a few details, and submit the required documents. You can follow the same process by visiting the website of the insurance company as well.
Undergo the required training
Once the form has been submitted, the next step would be to undergo training. The training process usually lasts for a duration of 15 hours and is conducted either virtually or offline.
Appear for the examination
On completion of the training, you will have to appear for the IRDA exam. The study materials for this examination can be accessed through the IRDAI website as well as the insurance provider’s website. A minimum of 17 out of 50 marks is required to qualify for this examination.
You receive a license to work as an insurance agent once you pass the pre-licensing IRDAI exam.
Who can be an Insurance Agent?
Individuals who have passed the 10th standard:
The minimum qualification required to become an insurance agent is that of passing the 10th standard. Additionally, one should ideally also have some knowledge about the workings of the insurance industry.
Individuals possessing the required documents:
To become an insurance agent in India, you need to provide proof of identity, proof of address, a copy of your PAN card, and a photo.
Individuals who have gone through the required training:
You have to undergo training for a particular number of hours to be eligible for selling insurance plans. Depending on the type of insurance you are planning to sell, the training may differ. For example, life insurance agents undergo training for a longer duration than general insurance agents.
Eligibility Criteria for Becoming an Insurance Agent
Minimum age limit
Only those who have crossed the age threshold of 18 years can apply to become an insurance agent.
Educational qualification
The minimum academic qualification required to sell insurance plans as an agent is 10th standard.
IRDAI exam certification
Only those who have passed the pre-licensing examination held by the IRDAI and have received a certificate verifying the same are eligible to become an insurance agent.
State exam qualification
States may have their own insurance qualification tests. You should be eligible as per their criteria and have passed the examinations they have prescribed if any.
If you are looking to become a full-time insurance agent with a company, then you may have to fulfil the company's specific eligibility criteria as well.
Steps to become an Insurance Agent
Being an insurance agent can be an immensely satisfying experience, financially as well as in terms of career growth. Here’s a quick summary of the simple steps involved:
- 1. Apply to become an insurance agent on the IRDAI or the ICICI website
- 2. Fill out a form, providing basic details and submitting important documents
- 3. Go through the mandatory 15-hour training in accordance with the IRDAI guidelines
- 4. Qualify for the IRDAI exam
- 5. Receive your license and start working as an insurance agent.
Documents required to become an Insurance Agent
Besides meeting the basic eligibility criteria, one needs to ensure that they have the following documents when planning on how to become an insurance agent:
- Proof of identity - You can produce your Aadhaar card, driving license, voter ID card, etc. as your proof of identity.
- Proof of address - Your Aadhaar card can suffice as proof of address as well.
- PAN card - You have to provide your PAN card, which would have your Personal Identification Number
- Certificates and mark sheets pertaining to your educational qualifications.
You are expected to submit these documents with a filled registration form. One should gather the documents well before the registration to avoid any last-minute hassles.
How to become a successful Insurance Agent in India?
Create a connection with your buyer
What separates a successful insurance agent from others is their ability to form a connection with their customers. Insurance is a personal matter. The buyer is seeking protection for themselves and their family members, their precious house, their enterprise, and so on. One must understand the kind of coverage the buyer is looking for based on their conversation. Then, they should stress the need for protection in those areas and showcase insurance policies accordingly.
Use the internet to your advantage
Today, there exist more channels of communication than ever. As a sales agent dealing in insurance policies, your aim should be to maximise these channels. You can create a page on social media sites where you share information about the latest policies your insurance company is selling. You can also encourage and showcase to young working professionals the importance of having insurance.
Be updated with the latest news
The insurance industry keeps undergoing changes. You should be updated with the latest news in the world of insurance so that you can adjust your insurance-selling approach accordingly.
FAQs
When can I start selling insurance?
You can start selling insurance policies as soon as you have passed your IRDA exam and have received the license for selling insurance. The certificate can also be accessed virtually.
Is it compulsory to undergo any training to become certified as a PoSP agent?
Yes. You need to complete a 15-hour training period mandated by the IRDAI to be certified as a PoSP insurance agent and to sell insurance policies.
What skills does an insurance advisor need?
As an insurance advisor, your primary skills should be your knowledge of the insurance industry and policies. An essential element of being an insurance agent is having strong persuasion skills. You should be able to convince prospective buyers about how vital insurance is and how it can add value to their lives.
How do insurance agents get paid?
Insurance agents are paid in the following manner:
- Via salary - Includes a fixed remuneration
- Via salary and commission - The commission portion depends on the number and kinds of policies you sell within a particular duration.
- Via salary plus bonus - The bonus is received when the insurance provider completes the targets set at the start of the year.