Why do we need Insurance Agents in India?

In today's uncertain world, an insurance agent's job entails more than just being a broker. You need to understand your client's needs and ensure that you assist them in choosing insurance coverage that meets all their needs while within their budget.

Becoming an insurance agent can be a rewarding career choice and even help you earn more than a typical 9 to 5 job. Initially, when you become insurance POSP, the job may seem challenging, but with the right training and knowledge of insurance policies, this job can be gratifying.

An insurance agent is no longer just a broker, but a professional who works as an intermediary between insurance companies and the customer, making the insurance purchasing process easier. As an insurance agent, it will be your duty to ensure that the policy the buyer chooses provides the best coverage to stay protected against any uncertainties of life.

Keep reading to get an insight into the functions, benefits and types of careers you can choose as an insurance agent.

Functions of an Insurance Agent

Let us look at the key functions of an insurance agent in India.

1. Securing New Business

One of the primary functions of an insurance agent is soliciting prospective clients and securing new business.

2. Assist Customers in Selecting the Right Policy as Per Requirements

A good insurance agent assists customers in choosing the right insurance policy, keeping in mind the client's requirements (whether health, life, or motor) from multiple available options.

3. Protect the Existing Clients

Apart from new customers, insurance agents must protect their existing customers and ensure they are up to date on the company's policies and are submitting their premiums on time.

4. Follow-up on Leads

A crucial part of becoming an insurance agent is having a necessary follow-up strategy and ensuring that all the major leads are taken.

5. Taking Care of Required Documentation and Processes

As an insurance agent, you are required to collect prospective documentation from the client per the terms and conditions of the chosen policy and inform them about key elements, such as the importance of appointing the nominee. This helps eliminate future ambiguities.

6. Taking Care of Post-Sales Queries of the Policyholders

As an insurance agent, the post-sale journey is also crucial to your job. This journey starts from the onboarding process, connecting at different stages to meet the changing needs, and continues till the time of claim settlement.

Top Benefits of Becoming an Insurance Agent

There are a lot of benefits to becoming an insurance agent. These include:

1. Be an Early Earner

You can become an insurance agent right after completing your 12th and only need to be over 18. This allows you to start earning at an early age.

2. Flexible Work Hours

This differs from a typical 9 to 5 desk job, and insurance agents have flexible work timings. As your job mostly involves contacting clients and tracking investments and policies, you can choose the time and place you'd like to work.

3. Zero Investment Required

You can earn money online without investment and need to spend your time and effort in this job. The sole prerequisites to becoming an insurance agent are finishing Class 10 and being older than eighteen. After that, all you need to do to obtain a general/life insurance licence is finish the IRDAI's mandatory 15-hour training program.

4. Be Your Boss

Being an insurance agent allows you to work independently without the constant supervision of a boss. You are independently responsible for your clients and their needs and are not required to report to a boss who evaluated your performance.

5. Build a Stable Income and Control Your Growth

The insurance industry offers huge untapped potential, and as an insurance agent, your income is only limited by your desire to be successful. Once you sell a policy, your earnings are not restricted to the commission you receive in the first year; you also earn on policy renewal.

6. Personal Improvement

As an insurance agent, you get a chance to improve your communication skills and interpersonal relations. Keeping in touch with your client makes you well-versed and confident. These qualities benefit you beyond your professional life.

7. Learn From Industry Experts

Once you become an agent of a reputed insurance company, you get valuable opportunities to develop your personal and professional skills through expert-led training programs, including classroom training sessions, one-on-one coaching, and field exposure.

8. Make a Difference in People's Lives

As an insurance agent, your work helps your clients build assets, retirement plans, child education care, and much more. Therefore, this industry allows you to make a difference in people's lives and society.

Types of Career as an Insurance Agent

As an insurance agent, you can opt for the following career opportunities:

1. Captive Insurance Agent

As a captive insurance agent, you are affiliated with a single company and are not allowed to sell insurance policies for any competing insurance provider.

2. PoSP (Point of Sales in Insurance)

A PoS insurance agent works with more than one insurance company. As a PoS insurance agent, you can provide clients with quotes from multiple companies to find the best policies and prices. Becoming a PoSP insurance agent provides greater flexibility in terms of work and the policies you can offer your clients.

3. Customer Service Representative

As a service representative or relationship manager, you act as a bridge between the life insurance company and the policy buyers. You communicate with clients, create new prospects, and help existing clients with their queries so that they do not approach competitors.

Conclusion

Suppose you want a job that provides flexible timings, various growth opportunities, unlimited income options, and the ability to help people build a financially stable future. In that case, a career as an insurance agent might be the right fit for you. The insurance market is lucrative and highly profitable if utilised thoughtfully.