How To Become A POSP Insurance Agent: Steps And Benefits

Insurance penetration in India has taken a nosedive since 2023. For example, in 2023, the Insurance Regulatory and Development Authority of India (IRDAI) recorded the insurance penetration rate to be only 3.7% in FY 23-24 This is clearly a drop from 4% in 22-23. The drop is a compelling reason as to why IRDAI has developed the model of POSP insurance, which facilitates insurance penetration more easily, efficiently, and quickly. POSPs bridge the gap between insurance firms and the end customers, as they are authorized to sell various pre-underwritten insurance products directly. On top of that, POSPs are individuals and not separate financial entities, so it is easier for them to approach customers and explain the awareness of insurance. But how can an individual become a POSP, and what are its benefits? We have addressed all these widely asked questions in this blog, scroll below.

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What is a POSP?

A POSP full form in insurance is a Point of Sales Person, an individual who is appointed and permitted by IRDAI to sell insurance policies. After completing the basic training, POSP agents can approach customers and sell insurance policies directly. In 2015, IRDAI introduced the model of POSP to improve awareness of insurance nationwide. Also, many small-scale businesses as well as households in India are still not covered against any unforeseen risks. POSPs serve as an excellent choice herein, by providing direct contact with customers who require a standardized insurance solution.

Main Differences Between POSP Agent and Insurance Agent

It’s not rare to get confused between an insurance agent and a POSP. Both of them sound like doing similar tasks, although they both have certain differences too.

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Benefits of Becoming a POSP Agent

If you’re looking for insurance POSP apply, then you must be aware of the benefits that a POSP agent gets.

In-time Payment

A POSP agent gets payment on the sales of insurance and does not face any uncertainty in getting paid. If you become a POSP insurance agent, you will be ready to get a commission once you sell off the policy.

Training For Beginners

Even if you do not have any insurance background, you can still apply for a POSP agent. You’ll be provided the basic training along with guidance on insurance awareness at every step. The best part of it is that you won't be charged, as the entire training session is free of cost.

Faster Process

The process of becoming an insurance agent is rapid, as there is no arduous paperwork involved in the process. After you have completed your KYC process and enrolled for your training, you can aim to be an agent within a day. The training process also doesn’t consume too much time, saving the day for your learning.

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Eligibility To Become a POSP Agent

Before you look at an insurance POSP apply, you must first check the major eligibility criteria for becoming an agent in insurance. The criteria listed below should be your checklist to tick:

Minimum Educational qualification

A minimum educational qualification of Standard X is required for a person to be eligible to become a POSP agent. Passing secondary education is vital as POSP agents need to sign their names, read and write as well as communicate with their customers.

POSP Insurance Training

The training is a vital part of the entire process of becoming a POSP agent. Once you qualify for the training examination, you will be provided with the authorization to sell insurance directly to the people. In addition to that, the training is not only about insurance awareness it is also inclusive of various insurance products, understanding the sales technique, and IRDAI POSP guidelines.

Digital Literacy

Digital literacy is a major requirement for becoming a POSP agent because a POSP agent is required to communicate with customers both online and offline. Having the basic digital know-how helps a POSP to answer any technical questions on claim settlement or the online purchase process.

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Steps To Become a POSP Agent

Becoming a POSP agent is not complete at all with these steps. Although you will be undergoing the training of a POSP seller, it is a no-brainer with the right steps.

Step 1

Sign up with an insurance firm as the first step. The firm will be posting your schedule for being a POSP agent, starting with your KYC verification. Few insurance firms train new POSP agents, for which you have to inquire first.

Step 2

The next step is to undergo the training. When you look for an insurance POSP apply, you have to make sure that you complete the training as the next step. The training facility will be of no charge, where you will get educated on various insurance products that you will sell. Also, you will be guided on customer identification and communication practices.

Step 3

After your certificate, you will have the license to sell insurance to retail customers. You can opt to sell various insurance products, such as car insurance, health insurance, or bike insurance. If you are an employee who needs a change in their daily ordeal, or a retired individual requiring some financial stability, becoming a POSP insurance agent is a wise choice.

Conclusion

A POSP insurance broker earns the commission levied on the premium they can sell. This makes becoming a POSP agent a lucrative career option in 2025. You can easily earn decently if you can sell higher premiums, as a POSP agent’s income generation primarily depends on the premium sold. With minimal training and basic education, anyone can sign up to become a POSP policy agent and start their income.