What Is The Difference Between POSP and An Insurance Agent?
Insurance is a developing sector in India where the country’s rising standard of living and laws like the Motor Vehicles Act lead to more Indians getting themselves and what they own insured. With the non-life insurance penetration in India at 1%, there is a 99% opportunity of scope for the sector.
So how exactly do you fit into all of this?
By signing up as a POSP Agent!
The full form of POSP stands for Point of salesperson. They are qualified, trained individuals who sell a wide range of insurance products directly to customers. A Point of salesperson is a crucial factor in the sector as they help enhance insurance penetration in India.
Another salesperson in the insurance industry is an Insurance Agent. An insurance agent is an employee of a particular country selling their products alone. They are licensed individuals who undergo extensive training to negotiate and sell insurance contracts.
To better understand each concept, below are the differences between the two roles.
How are POSP and Insurance Agents different?
| Difference | POSP | Insurance Agent |
| Definition | PoSP stands for Point of Salesperson. They sell a range of insurance products directly to customers. | An Insurance Agent works with an insurance company to sell specific insurance products. For example, if you require a health policy, you can contact a health insurance agent from the company to sell you that product. |
| Qualification | Anyone can become a PoSP. Minimum 10th pass candidates can qualify as a PoSP agent. College students, Retirees, Businessmen/women, or even stay-at-home spouses and homemakers can become a PoSP agent! | An Insurance Agent should be a 12th-pass candidate and have enough information about the specific insurance product they want to sell. They must pass the IRDAI examination and have a license to start selling insurance for a particular company. |
| Training | A 15-hour training program to clear an exam by the insurer and claim the e-certificate is necessary. | 40 to 50 hours of training provided by the IRDAI is necessary to clear the test and become an Insurance Agent. |
| Validity of certification | Certification is valid for 5 years for a PoSP agent. | Certification for an insurance agent is valid for up to 3 years. |
| Type of products sold | A PoSP agent can sell simple, over-the-counter insurance life and non-life plans. These products are clear and have fixed benefits, and they do not sell complicated or high-risk products to customers. Eg: PoSP agents can sell car or motor insurance, travel insurance etc. | An Insurance Agent sells tailor-made high-value products for their customers. They advise clients and help them customise policies that fit their needs. They sell complicated and high-risk policies as well. Eg: Products like marine insurance can be sold through an insurance agent. |
| Extent of market reach | A PoSP agent sells policies to first-time consumers and concentrates on grassroots levels. | An Insurance Agent can sell simple and complex customised insurance in large cities and towns. |
A Point of salesperson sells transparent products, their main goal is to acquire new clients, while an insurance agent cross-sells to their existing client base. Although the two can seem similar, becoming a PoSP is easier and can be considered an additional source of income.
You can become your own boss and earn as much with just a smartphone!
How can I become a POSP with Digit?
To become a POSP agent, you need the minimum qualification mentioned by IRDAI and to undergo the training we provide. With Digit Insurance, you can sell Car, Bike, Health, International Travel, SFSP and other insurance products. Anyone can become a PoSP agent with Digit from college students, stay-at-home spouses and homemakers, retirees and businessmen/businesswomen.
Working directly with Digit, you get 24x7 support, quick commission credit and instant policy issuance, all completely paperless!
Become a POSP agent with Digit with these 4 simple steps!
Step 1
Sign up by filling our POSP form given above, and our team will get back to you with more details. 😊
Step 2
Complete your 15-hour training with us.
Step 3
Complete the prescribed examination.
Step 4
Sign the agreement with us and that’s it! You’ll be a certified POSP.
Frequently Asked Questions
What are the criteria for becoming a PoSP agent?
If you want to become a PoSP agent, you must be 18 years old, completed 10th grade education and have a valid Aadhar and PAN Card.
When can I start selling insurance?
As soon as you have registered with us, you will begin your training for the PoSP exam. Once you have passed the exam, you will receive an e-certificate. You are then eligible to sell insurance as a PoSP agent.
What products can you sell as a PoSP agent?
Depending on the company you work for, a PoSP can sell insurance plans across several insurance categories. These include life, term, motor, health, travel insurance and many more.
How much money can you earn as a PoSP?
As a PoSP, your earnings won’t rely on the number of hours you work but on the number of policies you issue. Since there is no fixed income and no maximum limit, there is a lot of scope for high earnings. Essentially, the more policies you sell, the more renewals you get, which means more earnings!
Do you need sales experience to become an agent?
Sales experience is a bonus when entering the field, but regardless, you can still apply and train to be an agent. If you have the determination, then you can make a career out of this field with the right training.
What qualities should a successful agent have?
To be a successful insurance agent, you must have good communicative skills and be an effective team player. One must also provide timely, reliable and polite customer service, close sales on current prospectus, provide leads, recognise customer needs and help meet business goals and expectations.