As India strives towards higher insurance penetration, the role of PoSP insurance agent emerges as a key driver in achieving this goal.
The insurance industry of India is gradually becoming the premium sector. Over the previous 2 decades, India's insurance market has grown at an outstanding rate, owing to increased private sector engagement and improved distribution capacities, as well as significant advancements in operational efficiencies.
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It is successfully experiencing upward growth in the market. The insurance sector is projected to achieve a market size of US$ 222 billion by 2026, as reported by the India Brand Equity Foundation (IBEF). This expansion is fueled by increasing disposable incomes, growing awareness of insurance benefits, and favorable government policies.
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Why the demand for Insurance is high in India
- Financial Protection: Insurance helps safeguard insured people from significant financial losses that can result from unexpected events. This includes accidents, illnesses, or property damage.
- Risk Management: Insurance allows people to transfer some of the risks they face to an insurance company. This can help people manage risks effectively and focus on their goals without worrying about unexpected financial setbacks.
- Legal Requirements: In many places, certain types of insurance coverage, such as auto insurance or workers' compensation insurance, are legally required. Failing to have these coverages can result in fines or legal consequences.
- Health Care Costs: Health insurance helps cover the costs of medical care, prescriptions, and hospitalization. Without it, medical expenses can quickly become overwhelming.
- Liability Coverage: Liability insurance, such as auto liability or general liability for businesses, protects from financial responsibility if an insured person injures someone or damages their property. It can cover legal expenses and settlements.
- Investment Protection: Insurance can protect investments, such as real estate and valuable collections, by covering losses caused by fire, theft, or other unforeseen events.
How the emergence of PoSPs help in Increasing Insurance Penetration in India
As India strives towards higher insurance penetration, the role of PoSP insurance agent emerges as a key driver in achieving this goal. These individuals, armed with local insights and a commitment to financial inclusion, are instrumental in making insurance a reality for a larger section of the population.
Read More: How to become insurance agent
Their significance in the growing landscape of insurance penetration in India is undeniable, marking a transformative era for the insurance industry and ensuring that protection and financial security reach every corner of the nation.
Top key reasons people buying Insurance in India
- Local Presence: Insurance PoS agents operate in local communities, including remote and underserved areas in Bharat. Their physical presence makes it easier for residents to access insurance services and products without having to travel long distances to urban centres.
- Personalized Guidance: PoSP insurance agents often have a better understanding of the unique needs and challenges of their communities. They can provide personalized guidance to potential customers. They may further explain the benefits of insurance and help them choose policies that are suitable for their circumstances.
- Language and Cultural Understanding: PoSP agents are often from the same or neighbouring communities. This means they speak the local language and understand the culture. This linguistic and cultural familiarity builds trust and makes it easier for people in Bharat to engage with insurance.
- Education and Awareness: The PoSP agent is instrumental in raising awareness about the importance of insurance and financial security. They conduct educational workshops, seminars, and outreach programs to inform people about the risks they face and how insurance can mitigate those risks.
- Simplified Sales Process: The PoSP insurance agent model typically involves a simplified and user-friendly sales process. This includes easy-to-understand policy documentation and simplified application procedures. This makes it accessible to people with varying levels of education and literacy.
- Customized Product Offerings: PoSPs often work with insurers to develop insurance products tailored to the specific needs of the local population. These products may include microinsurance policies that are affordable and provide coverage for common risks faced in rural areas.
Steps to Become an Insurance PoS in India
Becoming an Insurance Point of Sales Person (PoS) in India involves a structured process that includes training, certification, and registration. Here are the steps to become an Insurance PoS in India:
- Eligibility Criteria:
Ensure that you meet the eligibility criteria set by the Insurance Regulatory and Development Authority of India (IRDAI). Generally, individuals above the age of 18 with a minimum educational qualification of 10th standard are eligible.
- Select an Insurance Company:
You need to register as a PoS with the insurer(s) of your choice. Each insurer may have its own onboarding process, so follow their specific requirements.
- Choose the Type of Insurance:
Decide on the type of insurance you want to sell. It could be life insurance PoSP, general insurance PoSP, or want to do cross-selling. Different insurers may offer various products, so understanding your preferred niche is essential.
- Training and Education:
Undergo the mandatory training program prescribed by IRDAI. Training programs are often conducted by insurance companies or approved institutions.
- Appear for the Examination:
After completing the training, you will need to appear for the examination conducted by the respective insurance company or an approved examination body. The exam assesses your understanding of insurance products, regulations, and ethical practices.
- Obtain Certification:
Upon successfully passing the examination, you will receive a certificate from the insurance company or examination body. This certificate is crucial for obtaining your PoS license.
- Apply for PoS License:
Apply for the PoS license with the respective insurer(s) and submit the necessary documents, including your training certificate, examination results, and any other required information.
- Registration with IRDAI:
After obtaining the PoS license from the insurer, you need to register with the Insurance Regulatory and Development Authority of India (IRDAI). This registration is mandatory for practicing as a PoS in the insurance sector.
- Adherence to Renewal Requirements:
PoS licenses are typically valid for a specific period, and renewal may be required. Ensure that you adhere to the renewal requirements, including ongoing training and any other criteria set by IRDAI or the insurance companies.
Conclusion
Insurance coverage is of paramount importance in a rapidly developing country like India, where individuals and businesses face various risks and uncertainties. The role of Point of Sales Person (PoSP) insurance agents in increasing insurance penetration across the country. These agents provide accessibility, personalized guidance, and cultural understanding to bridge the gap between insurance companies and potential policyholders. It is important to note that there are many advantages to becoming a PoSP insurance agent. However, the job also comes with challenges. This includes income variability, competition, and the need to meet regulatory requirements. Success in this field often requires hard work, dedication, and effective sales and communication skills. Remember these aspects are important to become an insurance pos.
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