Are you considering a secondary job to supplement your income or a way to start earning your way to financial freedom? If so, then a career in insurance might seem lucrative to you. Becoming an agent is a highly beneficial yet gratifying job that favours the agent and the lives of those investing in the insurance.
But while many people have different ideas about what an agent is and what they do, if you want to start your career as one, here are five things you must know before becoming one.
What is an insurance agent?
An insurance agent is a licensed professional representing insurance companies and selling insurance policies to individuals and businesses. They act as intermediaries between the insurance company and the policyholder, helping clients choose the most suitable insurance coverage based on their needs.
There are typically two types of agents one can look to become:
- Exclusive or Captive
An exclusive or captive agent represents and works for only a single insurer, exclusively selling policies from them.
- Independent
On the other hand, an independent agent is free to showcase and sell policies from affiliated insurance providers.
What is the role of an insurance agent?
Although the primary job of an insurance agent is to sell policies and generate new business for insurance providers, their responsibility has evolved over time into a more advisory role where they help guide and advise customers about the various policies, inclusions, exclusions, coverage options, claims options, budgeting, etc.
What are the benefits of becoming an agent?
Becoming an agent in India is highly beneficial in terms of both flexibility and financial independence. As becoming an agent in India does not require any monetary investment, anyone can start their career as one with just some hard work and time. This, along with flexible working hours and workplace, unlimited potential to earn, the ability to help the people in your community, and much more, makes becoming an agent highly rewarding and gratifying.
How do you become an insurance agent in India?
Requirements to become an agent in insurance
In India, the regulatory authority for insurance, the IRDAI, sets the requirements to become an agent. Although the barrier to entry is very lax, allowing anyone with time to aspire to become an agent, these requirements act as a filter and training opportunity.
It helps aspiring agents understand the criticality of their role, understand the various insurance products sold, and train them to understand the needs of potential customers and help offer the right policy for their needs.
- Be at least 18 years old.
- Complete the 10th or 12th standard, depending on where you are from.
- Complete the practical training with a registered insurance provider.
- Pass the licensing examination.
Process of becoming an agent in insurance
Once you have understood these requirements, you can start following these steps to become an agent.
- Determine an insurance company you would like to work for.
- Understand and assess the industry's general eligibility criteria and any requirements the company sets.
- Visit the company's website, check recruitment posts, or call them.
- Complete your training with them and prepare for the licensing exam.
- Attempt and pass the licensing exam to receive a license to practice.
- Sign a contract with the insurer and start selling insurance representing them.
What are the qualities of a successful insurance agent?
If you are looking forward to a long-lasting and successful career in insurance, just becoming an agent is not enough. There are certain qualities which an agent must imbibe to become successful and ensure a long-lasting career.
1. Strong communication skills
An insurance agent primarily fulfils a sales function; thus, they must have strong communication skills to listen, understand the customers' needs and convey their recommendations accordingly.
2. Knowledge and expertise
Along with a sales function, an agent also fulfils an advisory role, thus requiring them to be knowledgeable about what they speak. They must have in-depth knowledge about a particular policy and offer accurate information to their customers.
3. Networking skills
Once you have become an agent, you must realise that customers will not just come to you. You have to find people looking for insurance or create a need among them for insurance to sell the policy. An agent must have good networking skills to find new potential customers and generate leads.
4. Selfless approach
An agent must be selflessly selfish to become successful and build long-lasting customer relationships. If you wish to stay in the industry for a long time, don't look for a quick buck; instead, selflessly offer the best advice you can to your customers. This quality will ensure that they come back to you whenever they need insurance advice or to buy a policy.
5. Perseverance
One of the most essential qualities an agent must possess is perseverance. Agents receive constant rejection and sometimes are even cussed if they are too persistent in following up with a lead. An agent must have the skill to face rejection, get up the next day and try again with someone else.
Conclusion
Becoming an agent requires the individual to be a good person who can solve other's problems through insurance. They must be good listeners and have good communication skills to excel. While anyone can become an agent, to become successful, it is imperative to understand these and put the right foot forward when starting your career as one.
