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Can You Become POSP Agent for Multiple Insurance Companies?

Selling insurance products from many companies gives an agent various options and grows their income. It allows them to offer various insurance products, compare policies, and provide the best solutions for their customers.

However, is one legally allowed to sell insurance policies from multiple companies? Keep scrolling for a detailed answer, eligibility criteria, guidelines, and more.

Team Digit

Is it Possible to Sell Policies from Multiple Insurers?
Different Types of Insurance Agents
Can All Agents Sell Policies from Multiple Insurers?
Benefits of Selling Policies from Multiple Insurers
Eligibility Criteria to Become an Agent
Guidelines to Follow
Become an Insurance Agent for Multiple Companies
Frequently Asked Questions

Is it Possible to Sell Insurance Policies from Multiple Insurance Companies?

Yes, it is possible to sell insurance policies from multiple companies in India. Earlier, agents were able to tie up with just one insurance company. However, this changed with the introduction of the Point of Sales Persons (POSP) model by the Insurance Regulatory and Development Authority of India (IRDAI) in 2015.

This open architecture aimed to democratise insurance accessibility by setting up an avenue that could improve nationwide insurance penetration. As a result, insurance agents can now tie up with a maximum of 3 insurers – one life insurer, one standalone health insurer, and one general insurer.

Thus, unlike traditional agents, POSP advisors can present policies from multiple insurers tailored to their customer's specific needs.

What are the Different Types of Insurance Agents?

The following are the different types of insurance agents:

1. Exclusive Agents

These agents are authorised to sell products from only one insurance provider. They have a formal contract with a specific company, which restricts them to promoting only that organisation’s policies.

2. Multi-Company Agents

These agents enjoy the ability to represent several insurance providers. This flexibility allows them to offer a broader selection of products from different companies, enabling them to meet the varied needs of their clients.

Can All Agents Sell Insurance Policies from Multiple Insurers?

Earlier, agents could only sign with one insurance provider, but in 2015, the Insurance Regulatory and Development Authority of India (IRDAI) introduced the Point-of-Salesperson (POSP) model.

“With this model, the POSP can now contract with a maximum of three insurers, including one life insurer, one standalone health insurer, and one general insurer.”

However, as recent news indicates, the Indian government has proposed an amendment to the Insurance Act to remove these limits. If this proposal is passed in Parliament, agents will have the flexibility to work with multiple insurance companies across all categories. This will transform the insurance distribution model in India.

What are the Benefits of Selling Policies from Multiple Insurers?

Offering various insurance policies from multiple companies can provide several benefits for both the insurance agent and their clients:

Eligibility Criteria to Become a POSP for Multiple Insurance Companies

The following are the eligibility criteria to become a POSP for multiple insurance companies:

Criteria	Particulars
Age	You must be around 18 years old.
Education	You must have completed secondary school (10th grade).
Certification	You must complete a training program and pass the examination to obtain IRDAI certification.

Guidelines to Follow When Selling Insurance for Multiple Companies

The following are some essential guidelines that you must adhere to sell multiple insurance policies from different providers:

1. Licencing Requirements

To sell insurance from different companies, you must obtain certification from the IRDAI. If you plan to collaborate with multiple insurers, each may require you to secure a separate license. This process typically involves completing specific training and clearing the necessary exams.

2. Transparency and Disclosure

When working as a multi-company agent, you must inform clients about your affiliations with various insurers. You must also maintain transparency regarding commission structures and avoid potential conflicts of interest. In your sales approach, always prioritise the client’s best interests.

3. Adherence to the Code of Conduct

IRDAI enforces a strict code of conduct for insurance agents. This includes sharing accurate and truthful information, avoiding false claims, and recommending policies that align with the client’s needs rather than focusing on higher-commission products.

How to Become an Insurance Agent for Multiple Companies?

You can follow the steps mentioned below to start your journey as an insurance agent for multiple companies:

Step 1

Finish Your Training

Complete the IRDAI-approved training and obtain the necessary certifications. This is an essential step to legally selling insurance policies.

Step 2

Register with Multiple Insurers

After certification, contact various insurance companies to register as their agents. Each company will have its onboarding process, including documentation, training sessions, and signing agreements.

Step 3

Stay Informed

The insurance sector is constantly evolving, introducing new policies, regulations, and products. Keeping yourself informed about these updates will help you offer better solutions to your clients and stay competitive in the market.

Insurance agents can only sell insurance policies from multiple companies within the IRDAI limit of three insurers, one from each category - life, standalone health and general. Selling insurance policies from multiple companies is possible as a POSP, allowing you to offer a range of products to meet your client’s needs.

However, it is essential to follow the legal and regulatory guidelines set by IRDAI to ensure compliance and maintain transparency.

FAQs about Selling Insurance Policies from Multiple Companies

All

Is it allowed to work as an agent for two insurance companies?

According to general guidelines, an individual can tie up as an agent with a maximum of three insurance companies from each category - life, standalone health and general.

Is a separate license required for selling insurance from multiple companies?

Yes, to represent different insurance providers, you need to acquire a separate license from each. After obtaining your IRDAI certification, you can apply to each company, complete their training programs, and get authorised to sell their policies.

Can I sell insurance policies from different insurance companies?

Yes, you can offer policies from various insurance providers by becoming a Point of Sales Person (POSP), a model introduced by IRDAI in 2015.

Can insurance agents sell multiple types of insurance?

As per the current IRDAI rules, an insurance agent can sell three types of insurance - life, standalone health and general. However, they can tie up with a maximum of 3 insurers from each category.

How many insurance companies can an agent work for?

An insurance agent can work for up to 3 insurance companies. However, they need to choose one from each category - life, standalone health and general.