Over the years, insurance has been established as a significant career opportunity. This has brought an increase in competition and saturation in the industry. Despite that, as the industry is growing, there is an increase in demand for more insurance agents to propagate this growth further. This is why, as new agents enter the insurance scene, many wonder about growth opportunities, specialisations, and the benefits of joining this rewarding but competitive industry.
This article will explore the specialisations offered to licensed insurance agents, how to become one, and the benefits.
Who is a licensed insurance agent?
An insurance agent is a licensed expert responsible for selling policies from an insurance provider to a potential customer. They are responsible for showcasing their various policies, listening to the customer and understanding their requirements and pain points, recommending the best policy based on these needs, and clarifying policy details to the customer.
There are typically two types of agents in insurance:
- Exclusive Agents- Exclusive or captive agents generally are representatives of a particular insurance provider and only offer policies from them.
- Independent Agents- An independent agent is someone who is free to sell policies from any number of insurers they are affiliated with.
What are the specialisations an agent can avail?
There are several specialisations an agent can choose to pursue based on their inclinations.
Life insurance
This is a type of insurance where an insurer promises to pay a particular sum of money in exchange for a premium to the policyholder after a set period or death.
General insurance
Health insurance
This is a type of insurance which offers reimbursement or cashless claims for medical treatment, rehabilitation, or preventative care such as diagnostic tests, etc.
Travel insurance
This is a type of insurance which offers protection from financial loss caused when travelling.
Auto insurance
This is a type of insurance which offers protection from financial loss caused due to owning a vehicle.
Property insurance
This insurance protects from financial loss caused in case physical goods and equipment are damaged or stolen due to any kind of risk.
Product liability insurance
This insurance offers protection from claims stating that a product you offer has caused bodily harm or property damage to someone else’s belongings.
Composite insurance
This is not a type of insurance but a specialisation where an agent is eligible to sell both life and general policies.
What are the benefits of becoming an agent?
There are several benefits to becoming an agent regardless of the specialisation they choose to pursue. Here are a few perks of becoming an agent in India.
- Stable income- In certain companies, becoming an exclusive agent offers monthly income, offering stability.
- No limits on commissions- There is no cap on how much commission an agent can earn, this incentivises more sales. The more policies you sell, the more you can earn.
- Flexible work timings- An agent can work when they want, offering unmatched flexibility.
- Ability to work from anywhere- An agent is allowed to work from anywhere, meaning that they can work from their home city without having to relocate to where the company is.
- No investment required- Becoming an agent requires no monetary investment, thus making it an excellent opportunity to start earning.
- Additional source of income- Due to its low entry barriers, anyone can become an agent and start earning even if they already have a primary job.
- Upskilling programs- Insurance providers offer upskilling programs allowing for agents to develop themselves, become better at their jobs, and earn even more.
Conclusion
There are many specialisations an agent in insurance can choose from. They can do so based on factors such as who offers more money, your personal inclination, and feasibility. There, however, is no set correct path to becoming an agent. So you should become one after due considerations.
I will recommend aspirants to become health insurance agents based on my experience as someone who has been working with Niva Bupa, a leading health insurance provider, as a health insurance advisor for several years.