Requirements For Becoming An Insurance Agent In India

Health insurance is a noble field where an agent is committed to helping strangers secure their health and financial security. In India, the eligibility requirements to become an agent are set up by the regulatory authority for insurance in India, the IRDAI. These requirements to become an agent are quite simple and require no monetary investment, allowing anyone interested to become an agent. 

Although that is the case, one must showcase their persistence and utilise their training to succeed as an agent. In this article, we will explore all you need to know about how to become an agent and what it entails when you do become one. 

What is an Insurance Agent?

An insurance agent is a professional responsible for generating new business for insurance companies by selling insurance policies. Although selling policies is the primary job role of an agent, they have also taken an advisory role to help prospective customers get the best policy for their needs.

There are typically two types of agents in India based on their affiliation:

• Exclusive or captive agents: An exclusive agent, as the name might suggest, works with a single insurance provider and exclusively sells policies from them. They also act as a representative for them in front of potential customers. 
• Independent agents: An independent agent sells various insurance products and is not bound to a single insurer, thus having more variety in their products. 

What are the requirements to become an agent?

1. Educational Qualification

Becoming an agent in India requires the applicant to have at least completed their 10th or 12th standard, depending on where they are from. The IRDAI’s guidelines state that if the applicant is from an urban area (more than 5000 residents), they must have completed their 12th to apply. If they are from a rural area (less than 5000 residents), they can apply after completing their 10th. 

1. Choose your specialisation

While this is not a requirement set up by the IRDAI, this can have an impact on the criteria. Becoming an agent specialised in both life and general insurance (composite agent) requires a higher training threshold than one specialising in just one. 

1. Training

Becoming an agent requires training from an insurer the agent wants to work with. For example, if the applicant wishes to become a health insurance agent, they can search for providers like Niva Bupa or Care Health Insurance and choose to be trained by them.

1. IRDAI License

One of the primary requirements for becoming an agent is an IRDAI license, which can be obtained by passing a prescribed licensing exam set up by the IRDAI. 

What are the steps for insurance agent registration?

1. Assess your interests and determine the field you wish to work in, such as a medical insurance agent for health insurance, an auto insurance advisor for four-wheeler insurance, etc.  
2. Based on these interests, find an insurance provider you would like to work with soon. 
3. Check their website for details, the “join us” portal, phone numbers, etc. Use them to fix an appointment and visit them. 
4. Complete your training with them and start preparing for the licensing exam.
5. Attempt the licensing exam and pass it to receive a license. 
6. Using that license, you can start working as an agent in insurance.

Roles and responsibilities of an insurance agent

Although becoming an agent in India is quite simple, aspiring agents need to understand the roles and responsibilities to succeed as one. As an agent, there are typically two roles that you must fulfill. The first is a sales function, while the second is an advisory role. 

• Sales role

1. Find prospective customers
2. Understand and assess their needs
3. Showcase the various policy options based on their needs
4. Once the customer has chosen a policy, complete the sales process. 

• Advisory roles

1. Recommend the best policy based on the customer’s needs
2. Explain the policy details and clear the jargon for easy understanding of the customer. 
3. Offer financial advice when required
4. Offer post-sales customer support 

Conclusion

Due to the lax requirements the IRDAI sets, anyone can aspire to become an agent in India. Whether it is as a secondary source of income or if you wish to join the industry full-time, becoming an agent is an achievable dream with many benefits. From flexible work conditions to unlimited potential to earn and constant on-the-job training, all with zero monetary investment from your side, start your journey as a successful insurance agent today.