Becoming a Point of Sales Person (POSP) Insurance Agent is a great career choice for individuals who are interested in insurance sales and have good communication and interpersonal skills. In this article, we will discuss the steps you can take to become a POSP Insurance Agent.
Step 1: Meet the Eligibility Criteria
To become a POSP Insurance Agent, you must be at least 18 years old and have a minimum qualification of 10th grade. Additionally, you must be a citizen of India or a resident of India. Meeting the eligibility criteria is the first step towards becoming a POSP Insurance Agent.
Step 2: Choose an Insurance Company
The second step is to select an Insurance Company that you would like to work with. Research the company’s product offerings, commission rates, and other details to make an informed decision. It is important to choose a reputable insurance company that provides good support and training to its agents.
Step 3: Complete the POSP Certification
To become a POSP Insurance Agent, you must complete the POSP Certification. The certification is available online and can be completed within a few hours. The certification course covers topics such as insurance products, sales techniques, and regulatory compliance. Upon completion of the certification, you will receive a certificate of completion, which is a mandatory requirement to apply for a POSP License.
Step 4: Apply for POSP License
After completing the POSP Certification, you can apply for a POSP License. The application process involves submitting your certificate of completion, ID proof, and other relevant documents to the Insurance Company you want to work with. The Insurance Company will then apply for your POSP License with the Insurance Regulatory and Development Authority of India (IRDAI).
Step 5: Get Training from the Insurance Company
Once you have received your POSP License, you will receive training from the Insurance Company. The training will cover the company’s product offerings, sales techniques, and other important aspects of insurance sales. You will also receive ongoing support and guidance from the Insurance Company to help you succeed as a POSP Insurance Agent.
In conclusion, becoming a POSP Insurance Agent requires completing the POSP Certification, getting a POSP License, and receiving training from an Insurance Company. By following these steps, you can become a successful POSP Insurance Agent and build a rewarding career in the insurance industry.
Difference between an Insurance agent and a PoSP
Insurance Agents and Point of Sales Person (PoSP) are both professionals who sell insurance products, but there are some key differences between the two:
- Licensing: Insurance agents are required to have an IRDAI (Insurance Regulatory and Development Authority of India) license to sell insurance products, while PoSPs are required to have a POSP license.
- Product Range: Insurance agents can sell a wide range of insurance products, including life insurance, health insurance, motor insurance, and more, while PoSPs are limited to selling specific types of insurance products as per their license category.
- Training: Insurance agents typically undergo extensive training to become licensed, and they receive ongoing training and support from their company. On the other hand, PoSPs undergo a shorter training period to get their license, and they may not receive as much ongoing training and support from their company.
- Commission: Insurance agents earn commissions on the insurance products they sell, which can vary depending on the product and the insurance company. PoSPs earn a fixed commission as per the guidelines provided by the IRDAI.
- Sales Approach: Insurance agents usually adopt a consultative sales approach, focusing on building long-term relationships with their clients. PoSPs, on the other hand, typically adopt a more transactional sales approach, where they focus on selling a particular product to the customer.
In summary, Insurance agents and PoSPs have some key differences in terms of licensing, product range, training, commission, and sales approach. Both professions require different skill sets and approaches, and it is important to choose the right one based on your interests, capabilities, and career goals.
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How much can you earn as a PoSP?
- Your income as a POSP will be determined by the number of policies you sell rather than the number of hours you work. You have unlimited earning potential as there is no set income or maximum limit.
What documents are required to be registered as a PoSP?
- You will need the following documents to register yourself as a PoSP with PBPartners. All of these must be self-attested (signed by you)
- Minimum class 10th Passing certificate or above if any.
- Copy of your PAN card and Aadhaar card for address proof (front and back).
- Cancelled cheque (your name should be mentioned on it).
- Your recent photograph.
- GST certificate
- NOC in case your PAN has an existing agency/POS code
What is the minimum age to become a PoSP?
- Anyone over the age of 18 who has completed the 10th standard can enroll as a PosP.
Can PoSP sell life insurance?
- Yes, a POSP can sell policies from various insurance companies, as well as policies in both life and non-life categories.
Can an agent become PoSP?
- Yes, if you meet all the requirements to be a PoSP. You simply need to meet the IRDAI’s minimum academic requirements and undergo the mandatory training.
Can a PoSP work for two companies?
- A PoSP can only sell PoSP-approved products of only one company. However, the same individual can be a POSP for both a life insurer and a general insurer.