PoSP Certification – A Must to Start Your Insurance Business
Many people today are looking for additional income sources. Starting an insurance agency business, signing up as a PoSP, and selling insurance online are fantastic ways to achieve this.
The IRDAI recognizes a certain category of insurance counselors known as a POSP (or Point of Sales Person). A POSP can collaborate with insurance providers or brokers to offer customers direct insurance sales.
POSP: What is it?
An insurance agent who can offer insurance products from different firms and categories, such as life, term, and health plans, is known as a point-of-sale person (POSP).
They work for brokers, corporate agents, or insurance. They typically deal in over-the-counter goods that have been approved and pre-underwritten by IRDAI. At the time of the sale, such products don’t need to undergo any more explanations or discussions with customers.
What are the Conditions for Becoming a POSP?
One can enlist in a prescribed training programme, pass the online exams, and become licenced as a POSP. A POSP can sell both, life insurance and general insurance policies, including motor insurance, health insurance, travel insurance, and more. To become a POSP Insurance Agent, one needs to be 18 years or above and must have passed class 10.
To obtain a licence to sell insurance, you must complete the IRDAI’s required training. The training is offered by the insurance provider directly if you registered through a business. After completing the training and passing the exam, you will receive your POSP license and an e-certificate.
Make the Right Company your Sign-up Partner
Make sure to research the insurance provider or broker you intend to work with to sell insurance. While researching for the right company make sure to find out:
- Are there any middlemen involved, or will you be interacting directly with the business?
- Do they provide a variety of insurance coverage options, such as those for health, auto, travel, house, etc.?
- Do they have lengthy processes and paperwork, or does the organisation offer insurance coverage online?
- If a client you brought on board renews their policy, will you still be able to earn a commission?
- Look at how quickly the business pays out commissions for the insurance you sell.
- Is there a capable backend support staff at the organisation who can assist you?
Additional points to bear in mind before applying to become a POSP insurance provider
Before you proceed with Insurance agent registrationcf these are some points to remember:
- To get experience, you might need to exert more effort
You would need to put in extra effort to gain additional knowledge or skill in areas like customer handling or pre- and post-sale features on insurance policies because the minimum training needed to become a POSP is 15 hours.
- Be aware of the time commitment you can make to selling insurance
Being a POSP has many benefits, one of them is the ability to work from wherever you want. But before you get started, consider how much time you want to devote to this project. Keep in mind that you can earn more money if you put in more time and effort.
- Verify who will be handling the claims and grievances for the insurance policies you sell–
Typically, any claims that need to be processed, customer service issues, and other customer assistance are handled by the agent or insurance company when you sell insurance products as a POSP.
However, POSPs might also be required to manage claims, serve as customer service agents, etc.
One simply needs to complete training offered by the insurance firm they wish to work for to become a POSP; the IRDAI’s minimum educational requirements are all that is required.
Necessary Skills Needed
A POSP agent needs to be professional, have a strong sense of teamwork, provide excellent customer service, be curious, and be someone who can figure out things quickly.
A POSP agent must also be technically excellent and have the ability to sell and issue insurance plans online due to the pandemic and the fact that the majority of us are working from home.
Why is POSP the Finest Career?
- POSP can sell policies from numerous insurance firms, and in both the life and non-life categories. Regular insurance agents, on the other hand, can only sell the insurance products of their own companies.
- Without any underwriting, POSP can immediately issue insurance coverage.
- Easy-to-use and effective technological platforms are made available to POSPs so they may offer clients immediate service.
- POSP can market straightforward insurance policies that offer comprehensive protection and tax advantages.
- Due to their local accessibility, POSP can increase client relationships and obtain more trust.
They are qualified to offer insurance products in the life insurance and general insurance categories after completing the training program. You only need a smartphone, a laptop, and a computer for the job because it is part-time and web-based.
These jobs enable people to earn money whenever it suits them. Furthermore, there is no upper age limit on how much a person can take as long as they are ready to work.