How Can You Sell Insurance Online in 2024?

Many people are looking for alternate career options and part-time jobs to earn additional income. One of the best ways to do so is to sell insurance online. Scroll through this guide to learn how to sell insurance online and other relevant details.

The following highlights why you should consider insurance as a career choice:

• Meaningful Contribution: The insurance profession allows individuals to play a significant role in supporting society by blocking the financial losses arising from mishaps or catastrophes.

• Diverse Opportunities: After joining an insurance company, you can diversify by working in customer service or marketing, depending on your strengths.

• Skill Development: Being in the insurance industry can be instrumental in developing traits such as customer relations, listening, critical thinking, and communication all of which can be applied in any field.

• Job Stability and Benefits: The insurance industry provides employment opportunities during globalisation and other recessionary times, with fair remuneration packages and promotions.

• Dynamic Environment: Several factors have made the insurance industry dynamic, including technological research, an increase in customer demand, and ever-changing customer needs.

• Integral to Society: Insurance is essential for the functioning of economies worldwide. It provides coverage for everything from construction sites to hospitals, ensuring stability and growth.

In India, there are two main ways to sell insurance online:

1. As an Insurance Advisor

An insurance advisor is someone registered with a particular insurance company and connects with customers to help sell them insurance policies, make claims, and more.  As per the guidelines by the IRDAI, you need to undergo a training program and sit an exam to get your licence and become an advisor.

2. As a Point of Sale Person (POSP)

A POSP is a new type of licence for insurance advisors created in 2015 by the IRDAI. While you still need to undergo the prescribed training program and clear the online examinations, you can sell multiple insurance companies' policies in both life and general insurance categories (including motor insurance, health insurance, travel insurance, and more).

This way, you can offer customers a wider range of options and different insurance plans from multiple companies so that they can choose the best product for them. You can work with an insurance intermediary or broker to sell policies from many companies or work with a single company. Thus, there are more options than a traditional insurance advisor.

An effective insurance advisor is always customer-oriented, which means that you have to establish the customers’ insurance requirements. The customers must understand the policy, and therefore, by advising them, you are in a position to establish long-term relations with them. 

You should also know what insurance products you are offering, your tax and legal status, and possess technical knowledge.

Qualifications Required for Becoming an Insurance Advisor

As per the IRDAI Act 2013 and the license conditions of insurance agents/ regulations 2000, certain parameters must be fulfilled to become a qualified insurance advisor. To become an insurance agent or renew the licence, a person must have passed the 12th standard exams from a recognised Board or Institution.

Procedure to Become an Insurance Advisor

To become an insurance advisor, go to the insurer's website and locate the application for insurance agents. Complete the application form by filling out the required details correctly. Following this, you must undertake the basic training mandated by the IRDAI, which is available both offline and online. 

Once the training is complete, you must qualify for the pre-licensing exam. Upon successfully passing the exam, you will receive a licence to practise as a certified insurance agent.

As we have seen, a POSP (or Point of Sales Person) is someone who is certified to sell insurance products from multiple companies, across different categories like life insurance, motor insurance, health insurance and more.

To become a POSP, you just need to meet the minimum educational qualifications as given by the IRDAI and undergo a mandatory training course.

Qualifications Required for Becoming a POSP

There are a few basic requirements to become an insurance agent. You must be at least 18 and should have completed Class 10. You will also need to have a valid Aadhaar Card and PAN Card, and a Bank Account in your name.

Procedure to Become a POSP

To start as a POSP, you need to enrol with a specific company or an insurance intermediary and then complete the 15-hour compulsory training the IRDAI offers. Once you have finished the training and cleared the prescribed examination, you will get a licence to sell insurance policies (as per the POSP guidelines).

So, anyone fulfilling these basic criteria can enrol to become a POSP. And since you can sell and issue insurance policies online, all you need for the job is a smartphone or a laptop and a good internet connection.

If you plan to sell insurance, here are the steps you need to follow:

Step 1: Become an Agent

To begin with, get certified as an insurance agent for selling insurance products. Finish primary and secondary education, get training, take an IRDA exam, and obtain certification. Then you can start selling insurance products or engage in more research to find out more insurance products to offer.

Step 2: Build Your Contact

Create a list of all your contacts – they can be your relatives, friends, acquaintances, co-workers, etc. They can be your potential customers. Tell them that you are now prepared to become an insurance agent.

Step 3: Cold Calling

Get a list of phone numbers and call people you do not know. Tell them about the insurance products you are selling. This helps you find more clients.

Step 4: Follow-Up Calls

After talking once, call again to set up a meeting if they are busy. Follow up to check if they are ready to buy insurance. Keep calling until you finalise a plan.

Step 5: Schedule Appointments

Arrange meetings with people who are interested in buying insurance. Meeting them in person or via video call can help you understand their needs and suggest the right insurance plans.

Here are some effective tips you can follow if looking for how to sell an insurance policy online:

1. Understand the Customers’ Needs-

Schedule appointments with your connections before selling an insurance product and perform a research overview. This involves understanding as much as possible about a customer’s financial background and requirements to determine what type of insurance they require.

2. Match the Right Product to Their Requirements-

After identifying customers’ needs, choose a product that serves the purpose. For instance, if the customer is a parent, you could recommend a child insurance plan. Health and term insurance are also required for a person to survive financially. Knowing whether the customer already has these plans and whether their coverage is sufficient is important. If not, recommend raising the coverage level.

3. Ensure Premiums Are Affordable-

Customers will only be interested in an insurance plan if the premiums are reasonable. Find out whether the proposed plan’s premium rates are reasonable enough for them. If they have concerns about the cost, advise them to take a cheaper plan that can be upgraded later when they become financially stable.

4. Explain the Product Features Clearly-

Insurance products can be complex, which often deters people. As an advisor, clearly explain the proposed product's terms, conditions, benefits, and features. When customers understand and see the value in the product, they are more likely to buy.

5. Handle Objections Effectively-

Selling insurance involves addressing many questions and objections from potential customers. Equip yourself with the necessary knowledge to handle these objections confidently and effectively, ensuring you can successfully close the sale.

By selling insurance, you earn various rewards, which are as follows:

• Unlimited Earnings: You can earn as much as you want because your income comes from the commissions on the policies you sell. The more you sell, the more you earn. There is no limit to your income.

• Be Your Own Boss: When you sell insurance, you run your own business. You decide your work hours and control your income. You are not stuck in a 9-to-5 job and can work when it suits you.

• Lots of Opportunities: You can sell insurance while doing another job. There is no retirement age, so you can work as long as you like. This means there are many chances to grow and succeed.

• Make a Difference: As an insurance advisor, you help people protect their futures. You sell plans that provide financial security and help families during tough times. The work you do makes a real difference in people’s lives.

• Flexible Hours: Selling insurance lets you work at any time. You are not tied to a strict schedule and can choose your work hours, giving you a good work-life balance.

• Suitable for Many People: Selling insurance is perfect for many individuals. Housewives can earn extra money while managing their homes, retirees can work without commuting, and students can do it part-time to support their studies or families. This flexibility makes it a great opportunity for everyone.

The following are some essential qualities to become an insurance agent:

• Address the Needs of Clients First: It is always important to ensure that your client comes first. Do not assume things; ask specific questions that will help you know what they consider significant. You can promote insurance products and services relevant to their needs and demands by doing so.

• Do Not Promote Products to Earn Commission: Understanding how to pair insurance products with each client's possible needs is crucial. If you try to sell something the client does not need, he or she will stop trusting you, so always think of what is good for the client.

• Develop Technical Expertise: Do not only sell; be a friend. Many successful agents have certifications in financial planning, such as Chartered Financial Counselor or Certified Financial Planner, which makes them more credible and knowledgeable.

• Provide Excellent Customer Service: Always ensure that you are accessible whenever your clients require your services. If you receive a call from a client, respond as soon as possible and deliver on any commitments made. The clients need to be happy and at ease with your services.

• Do not Mislead Customers: Never mislead your clients about the details of their insurance policies. Honesty from the beginning helps you earn their trust and respect, which can lead to repeat business.

• Show Emotional Intelligence: Listen to your clients and empathise with their situations. Understanding their true needs and desires helps you serve them better.

• Maintain Honesty: Be truthful about your work. Dishonest insurance brokers typically do not last long with any employer.

• Exhibit High Energy: Stay enthusiastic and eager. Your energy and passion for your work make you stand out as an exceptional insurance agent.

• Be Persistent: Persistence is key in the insurance industry. You need to handle rejection with a positive attitude and keep moving forward.

• Gain In-Depth Product Knowledge: Understand the policies you sell, including their tax and legal implications. This knowledge helps you explain how these products fit your client's financial situation.

The sale of insurance online presents a viable and flexible employment opportunity now and during difficult economic times when people require more income. Knowing how to sell insurance online will enable an insurance advisor or POSP to address the customer’s various needs. If properly done, selling insurance online can be a fulfilling and profitable venture.