The insurance sector in India is witnessing an incredible change. The move taken by IRDAI has increased the insurance penetration which resulted in economic growth and employment opportunities in India. 

The concept of PoSP (Point of Sales Person) has proved to be a great move to grow the insurance sector of India. The PoSP agents play an important role in selling the cover policies to a large number of buyers. They sell different kinds of policies which results in insurance penetration. The PoSP concept made the insurance policy available to many buyers in India. It also helps the insurance sector to make the buyer understand the benefits of the insurance policy.

PoSP Model’s Impact on Penetration

The PoSP plays an important role in increasing the number of new buyers for the insurance companies by selling the insurance policy. Here are the jobs that the PoSP insurance agent performs to increase the sales of policies.

  • Data Collection: The PoSP agent collects the data of the buyer to connect with them over a call or meeting. Here data means the general information of the buyer which helps the agent to understand the profile of the buyer. The PoSP advisor understands the needs of the buyer by collecting their data. He also understands the budget and coverage needs of the buyer.
  • Approach the buyer: The PoSP agent contacts the buyer after collecting their data. He makes phone calls and writes emails to the buyer regarding the insurance policy he sells for different companies. He also set a target to meet as number buyers as possible daily.
  • Insurance Advisor: The PoSP agent advises the buyers on different kinds of policies they can buy to ensure a secure future. The agent is familiar with different kinds of policies. He explains each policy that meets the demand of the buyer. He also ensures that the policy he suggests aligns with the budget of the buyer. He gives several choices to the buyer to choose from.
  • Help buyers with insurance renewal: It is also a key role that PoSP agents play in increasing the sale of policies. He meets the buyer and helps him with the renewal of the policy. He guides the buyer in filling out the necessary form and making the payments to successfully receive the policy renewals. The agent remains in contact with the buyer even after selling the insurance policy. He monitors the term of the policy and contacts the buyer when the policy is close to expiring. He meets the buyer and suggests renewing the policy to continue with the coverage that the insurance company shall provide after the expiration of the policy.
  • Help the buyer understand the policy intricacies: The PoSP agent guides the buyer in every step to help him in buying the policy. He explains the features, advantages, and disadvantages of the policy that the buyer is likely to buy. He also explains the amount of premium that the buyer has to pay to buy the policy. The PoSP also explains how the amount shall secure a great future for the buyer.
  • Claim process: The PoSP agent also helps the buyer in the claim process. He helps the buyer in filing the claim form to receive the amount of claim that the insurance company promises to the buyer. He contacts the insurance company and pursues them to pay the compensation to the buyer.

Read More: Step-by-Step Guide to File a Reimbursement Claim Under Health Insurance

PoSP Model's Impact on the Economy

A PoSP advisor plays an important role in the growth of the Indian economy. He is the one who sells the policies and brings funds to the insurance company. This results in the growth of the insurance industry. This further results in the growth of the economy of India.

Let us discuss the role of PoSP in the growth of the Indian economy.

Saving

Saving takes place when a person does not spend it and saves it for future needs. A person saves money when he does not spend it. An investment in the insurance sector can only take place when a person saves his income. The PoSP agent makes people learn the benefits of saving by guiding them about the insurance sector. They meet people daily and make them understand the benefits of saving they may enjoy in a financial crisis. The saving of people goes or invests in the different kinds of insurance policy. The insurance company invests its savings in productive activities. In return, they offer security to the people. Insurance companies mobilize savings to support economic growth. This promotes economic development and provides coverage to a large number of policy buyers. It also offers coverage to the companies of India.

Help Businesses in Reducing Risk

The businesses and companies in India play an important role in the development of the economy. The country needs to protect these companies from incurring losses. Such losses may create problems in the development of the nation. It may also stop the progress of a developing nation. Such companies may shut down due to the losses they face. The insurance PoS helps such companies by advising them to buy the insurance policy. Insurance companies offer different kinds of commercial lines policies to companies that protect their interest and help them overcome financial losses.

The PoSP agents advise businesses and companies to buy the following types of policies.

  • Commercial property insurance: This insurance policy protects the companies from every loss related to the property of the company. In other words, this policy protects the companies from loss and damage to the business properties. Such properties include computers, furniture, papers of the company, business funds, and lost income.
  • Professional Liability Insurance: This insurance protects business owners from the loss that took place due to an error. An error made by a business may attract many penalties and also invite different kinds of suits. Professional liability insurance helps businesses avoid such risks.
  • Product Liability Insurance: A business may suffer from a loss due to defects in its product. However, product liability insurance helps the business avoid such risks.

PoSP Model’s Impact on Employment

IRDAI introduced the PoSP concept in 2015. It was important for the IRDAI to introduce this concept to meet the unique demands of the people. This model also made a heavy impact on employment. Many people started finding a career in the insurance industry. With the PoSP move, it is easy for people to work as an insurance PoSP. One only needs to attend the training session and clear the IRDAI exam to receive the PoSP license which allows them to sell the insurance policy. A PoSP agent may sell different kinds of policies of different companies and earn a considerable income.

PoSP Model on the Insurance Sector

It is easy to become a PoSP agent. A businessman, homemaker, retired employee, etc may become a PoSP agent. A person may become an agent who is an Indian and has the following documents.

  • 10th class mark sheet
  • Aadhaar card
  • Bank account
  • PAN card

A normal agent may also become a PoSP. He needs to attend the 15-hour training session and clear an exam to work as an insurance PoSP. A person does not need to make any investment to become a PoSP. He only needs to give his time to the work. He should have a smartphone or laptop to contact the client and sell the policies.

A PoSP agent earns money by selling insurance policies. He may earn a reward on each policy he sells. He may also earn a reward in the form of money on the renewal of the insurance policies.

Here are the benefits a person may enjoy by becoming a PoSP agent.

  • A person may enjoy a flexible working hour. He may work whenever he wants.
  • An agent does not need to complete a diploma to become a PoSP. He only needs to clear the exam.
  • A PoSP agent may sell different kinds of policies and earn a good reward for every policy.

One may become a good insurance agent by attending the training sessions and clearing the exam. One also needs to attend the regular training sessions that the insurance company organizes.

Also Read: Life insurance Claim Process and Required Documents

Conclusion

The PoSP model has a great impact on the economy and employment. It also plays an important role in increasing the sales of policies. The PoSP agent sells different kinds of policies to a large number of people. They also sell policies that protect the businesses from loss. This helps in economic growth. Nowadays, people want to become a PoSP as compared to normal insurance agents. This is because a PoSP can sell the policies of different companies. But a normal agent may work for only one company and sell its policies.