Becoming a general insurance agent is an exciting career path that offers opportunities to interact with people and help them protect their assets.
As a General Insurance Agent, you will have the opportunity to sell various types of insurance policies, including Mediclaim Insurance, Motor Insurance, Personal Accident Insurance, Home Insurance, and Shop Insurance.
In this article, we will provide a comprehensive guide on how to become a general insurance agent and excel in your career.
How many companies are there in General Insurance?
In the field of General Insurance, there are a total of 33 companies operating, which comprise both private and government entities. Among these, four are Public Sector Undertaking (PSU) companies, while the remaining are either privately-owned or bank-run companies.
What should be the eligibility for general insurance?
Minimum Age: The age of the applicant should be at least 18 years at the time of applying.
Qualification: Minimum qualification of 10th class pass or equivalent examination from a recognized Board/ Institution.
How much does a General Insurance Agent earn?
Insurance agents are not paid a fixed salary by the insurance company. Instead, they receive a commission based on the number of policies they sell. The amount of commission is directly proportional to the number of policies sold.
This system provides an advantage to the insurance agent as they have the potential to earn a higher income by selling more policies. Additionally, when the policy is renewed, the agent can earn commission again, providing an ongoing source of income.
What are the benefits of becoming a General Insurance Agent?
Becoming a General Insurance Agent can provide several benefits, including:
- Flexible Work: As an insurance agent, one can enjoy the flexibility of working on their own schedule, making it a suitable career for individuals who prefer working independently.
- Unlimited Income Potential: As the commission is directly linked to the number of policies sold, there is no limit to the amount of money that can be earned. An insurance agent can earn a high income by selling a large number of policies.
- Ongoing Income: Insurance policies typically renew annually, which means that an insurance agent can earn commission on the renewal of policies sold in the previous year, providing an ongoing source of income.
- Helping People: Insurance agents play a crucial role in helping people protect their assets and financial well-being. By providing the right insurance policies, an agent can help their clients secure their future and gain peace of mind.
Overall, becoming a General Insurance Agent can be a lucrative and fulfilling career choice for individuals who are driven, self-motivated, and passionate about helping others.
Process to become a General Insurance Agent
If you have decided to become an insurance agent, the next step is to obtain the required license. Let’s explore the process for obtaining an insurance agent license.
Step 1 – Choosing an Insurance Company
To begin, select a general insurance company that is recognized by the Insurance Regulatory and Development Authority of India (IRDAI) and offers policies that you want to sell.
Before making a final decision, it’s important to research the company and familiarize yourself with their products, including their premiums and features.
This will enable you to make an informed decision and provide the best options to your clients.
Certain insurance companies offer policies with high premiums that cater to specific market segments. For instance, if a customer needs a mediclaim plan with a limit of 7,000 rupees, but the minimum plan offered by a company starts at 10,000 rupees, it could create difficulties in selling the policy. It’s important to keep these factors in mind when selecting a company and offering their policies to potential clients.
In your area, which insurance company people prefer may vary. Some people may prefer private insurance companies, while others may prefer companies that operate through banking channels. It’s important to understand the preferences of your potential clients and tailor your approach accordingly.
Based on the preferences of potential policyholders, you can make an informed decision about which insurance company to work with.
By understanding the needs and priorities of your clients, you can choose the company that provides policies that align with their requirements and offer the best value for their money.
Step 2 – Contact with the representative or office of the selected company.
Go to the company’s website and fill the agent registration form. And work according to their reply.
Go to the office of that company and meet the manager there and talk that you want to become the insurance agent of the company. After discussing with you, the sales manager will tell whether he is going to give you agency or not.
Step 3 – Documents and Training
You will have to fill the form by giving documents for registration. Along with this, the exam fee will have to be paid.
Now you will be given training from the company. Or you will be asked to do online training. In this training, things like what is an insurance policy, its different types will be explained.
You have to prepare yourself for the exam from the book you will get for insurance exam and give the exam.
Step 4 – Insurance Agent’s License.
After passing the exam, you will be issued an insurance agent license by the insurance company.
For this, the representative of the company will give you training about the products of the company. In the initial phase, take maximum training and understand about the products.
With the necessary knowledge and information, you will be well-prepared to sell a variety of policies offered by the chosen insurance company.
In conclusion, becoming a General Insurance Agent can provide several benefits, including flexible work, unlimited income potential, ongoing income, career growth, and the opportunity to help people protect their financial well-being.
When selecting an insurance company to work with, it’s important to research the company’s products, including their premiums and features, and understand the preferences of potential policyholders in your area.
By doing so, you can make an informed decision about which company to work with and be well-prepared to sell a variety of policies to meet the needs of your clients.