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How Can You Sell Insurance Online?
In these times, a lot of people are looking for alternate career options and part-time jobs to make some additional income. One of the best ways to do so, is to sell insurance online.
In India, there are two main ways to sell insurance:
1. An Insurance Advisor
An insurance advisor is someone who is registered with a particular insurance company and connects with customers to help sell them insurance policies, make claims, and more. As per the guidelines laid down by the IRDAI, you need to undergo a training program and sit an exam to get your license and become an advisor.
2. A Point of Sale Person (POSP)
A POSP is a new type of license for insurance advisors created in 2015 by the IRDAI. While you still need to undergo the prescribed training program and clear the online examinations, you will be able to sell policies of multiple insurance companies, in both life insurance and general insurance categories (including motor insurance, health insurance, travel insurance, and more).
This way, you can offer customers a wider range of options, and different insurance plans from multiple companies so that they can choose the best product for them. You can work with an insurance intermediary or broker to sell policies from many companies, or work with a single company as well. Thus, there are more options than a traditional insurance advisor.
How To Become An Insurance POSP
As we have seen, a POSP (or Point of Sales Person) is someone who is certified to sell insurance products from multiple companies, across different categories like life insurance, motor insurance, health insurance and more.
To become a POSP, you just need to meet the minimum educational qualifications as given by the IRDAI and undergo a mandatory training course.
- Qualifications Required for Becoming a POSP: There are a few basic requirements to become an insurance agent. You must be at least 18 years of age and should have completed Class 10. You will also need to have a valid Aadhaar Card and PAN Card, and a Bank Account in your name
- Procedure to Become a POSP: To start as a POSP, you need to enrol with a specific company, or an insurance intermediary, and then complete the 15-hour compulsory training offered by the IRDAI. Once you have finished the training and cleared the prescribed examination, you will get a license to sell insurance policies (as per the POSP guidelines).
So, anyone who fulfils these basic criteria can enrol to become a POSP. And since you will be able to sell and issue insurance policies online, all that you need for the job is a smartphone or a laptop and a good internet connection.
Setting up the online channels like Google listings, website creation, setting up other online channels like Google, Facebook pages, ads, email, SMS, WhatsApp etc and more. Short details about all will be very helpful.
Frequently Asked Questions
What’s the difference between a POSP and a normal insurance salesperson?
The main difference between the two is that an insurance agent can only sell insurance plans of the company they are associated with, and they can get either a license to sell life insurance, a license to sell general insurance, or a composite license to sell both life and general insurance.
On the other hand, a POSP agent can sell insurance plans across all the above categories of insurance, and from a variety of insurance companies, though to do so they need to be associated with an insurance intermediary or broker.
Who can become a POSP?
Anyone who meets the basic criteria (being over 18 years old and having passed Class 10) can become a POSP. Thus, it is the perfect opportunity for freshers. And, since you can do this work part time, it is also a good opportunity for college students, homemakers, retirees, and even those who already have a job but still want to do more things on the side
How much money you can earn as a POSP?
As a PSOP, your earnings won’t rely on the number of hours you work but on the number of policies you issue. Since there is no fixed income, and no maximum limit, there is a lot of scope for high earnings. Essentially, the more policies you sell, and the more renewals you get, the more you can earn as a POSP.
What documents do I need to submit to register as a POSP?
To register as a POSP, you will need the following documents:
- A copy of your Class 10 (or above) pass certificate
- A copy of your PAN card and Aadhaar Card (front and back)
- A cancelled cheque with your name on it
- A photograph
What products can a POSP sell?
Depending on the company they work for, a POSP can sell insurance plans from across several categories of insurance. These include life insurance, term insurance, motor insurance, health insurance, travel insurance, and more.
When can you start selling insurance?
Once you have registered with an insurance company or broker, you can complete the 15 hours of training and pass the required examination. Then you will receive an eCertificate, and you can start selling insurance online as a POSP agent.
What are the Advantages of Being a POSP?
There are a number of benefits of selling insurance online as a POSP:
- There are no fixed timings – You can easily choose and set your own working hours and decide whether you wish to work full-time or part-time.
- You can become your own boss – You’ll be able to work when it’s convenient for you, and set how much work you want to do.
- It’s possible to work from home – Since POSPs can use online processes to sell policies, they can easily work from home, or even anywhere else they want to.
- There are set commissions – POSPs earn commissions that are set by the regulatory body (IRDAI). So, while you’ll likely get a stable flow of income, the amount will depend on the number of policies you issue.
- Zero investment is required – There’s no investment or payment required when you join as a POSP. All one needs is a smartphone, computer, and an internet connection!