Difference between Insurance Agent & PoSP Agent Partner

Difference between Insurance Agent & PoSP Agent Partner

The insurance market in India is undergoing a transformative phase at present. As one of the fastest-growing markets in the country, India is finally recognizing its necessity and becoming more aware. The IRDAI had worked as a catalyst in this equation to increase insurance penetration by introducing a distribution model called Point of Sale Persons (PoSP). Although this mode of insurance distribution was not meant to compete with the traditional Insurance Agents model, it has shown great potential. The PoSP model intends to reach clients who are still far from the reach and service of insurers for respective reasons.

PBPartners is based on the PoSP model and amplifies its potential, giving our PoSP agent partners the power to start their journey as Insurance Agents. But how is a PoSP different from an insurance agent? Let’s find out:

Qualification & Training

The qualification for being an insurance agent is graduation, along with the intermediate(12th standard) passing certificate. Furthermore, agents need to pass the examination conducted by IRDAI. Candidates can only appear for the exam after the completion of over 50 hours of training. After this training, the agent appears for the exam and upon passing it, receives a license with a validity of three years only.

To be a PoSP, all you need is a high-school passing certificate. A PoSP undergoes a 15-hour training post which they need to pass an examination. This 15-hour training session grants them a certificate that remains valid for five days. PoSP agent partners need to appear for the exam within these five days. Earlier, only the National Institute of Electronics and Information Technology (NIELIT) could certify trained PoSP. But PBPartners bring you this facility so that you can take the next big step towards your full-time career.

Sales & Service

An insurance agent can only sell policies offered by his affiliated company. However, insurance agents can sell and simultaneously act as consultants to policyholders. They also sell complex products to people, companies, and businesses. Insurance agents can help their customers tailor the policies to meet their exact requirements. Agents may also have to advise clients on policy matters.

One of the biggest advantages of the PBPartners model is that it allows PoSP agent partners to work for more than one insurance service provider. This business model has simpler products that don’t have many technicalities to sell to consumers. A PoSP agent partner is also qualified to sell two-wheeler insurance, four-wheeler insurance, life insurance, health insurance, etc. Products sold by a Partner must satisfy the three norms –

  • Plan has to be easy to understand and explain.
  • Plan must have already stated the investment benefits.
  • Plan benefits must be fixed, non-fluctuating, and pre-defined.

Area of Operations

Insurance agents usually operate in tier-1 and tier-2 cities only. Their area of operation depends upon the requirements of the associated Insurance company. Agents also usually sell products from a fixed bucket of policies set by their company, hence focus on selling products that are being pushed by the affiliate company. So in a way, their area of operation is governed by their company’s bent to sell complex policies with varying returns.

The vision of PBPartners is to act as a channel that gives last-mile connectivity for customers who can only be tapped offline. As a PoSP, you can undergo training online at one of India’s leading fintech companies and begin your full-fledged career. A PoSP mainly caters to first-time customers, in search of basic insurance policies, across metros, urban, semi-urban, and rural areas. PBPartners enables a quicker onboarding procedure, thus engaging the workforce with a bigger consumer base.

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