Insurance is one of the very huge business in India and more & more companies are entering the market to fulfil this requirement and make money.
A very huge part of the business is generated by insurance agents only and that is the reason insurance agents make lots of money.
So in this article I am going to show you a simple way to become an insurance agent & some tips that help you to make more money.
How to Become an Insurance Agent
Eligibility and Criteria to become an insurance agent
As an insurance agent, you need to help your customers (individuals, families or businesses) to choose the right insurance policy that cover risk and enough financial aid.
Agent works for confined insurance company/companies by selling insurance products offered by the company/companies.
As an insurance agent, you can deal with various insurance products like life insurance, health, disability, causality and long term care policies. You can even sell insurances for home, properties, automobile etc.
You must be a college graduate to be eligible to become an insurance agent. Many of the insurance companies considers high school graduate with proven sales ability to become insurance agent.
You need to pass an exam conducted by IRDA (Insurance Regulatory and Development Authority).
Each state/territory/country requires license to business insurance. Agent will require separate license to sell life and health insurance, casualty or property insurance. To get license, agent must complete pre-licensing courses and quality state examinations
An insurance agent can acquire management degree and hold managerial position after certain years of experience. Further, he has chance to become agency superintendent or any other similar position.
How much do insurance agents make?
Sales workers or employees of any insurance agency or insurance carrier may be paid either of three ways: salary, salary plus bonus or salary plus commission.
Typically, commission is most common type of reward for experienced agents. The commission amount depends on type of insurance and risk covered in the policy and whether transaction made is new or renewal of policy.
On other hand bonus are usually awarded either when an agency meets their targeted profit or particular agent meets targeted sales.
Besides above mentioned remuneration policy, Insurance agency offers extra benefits to insurance sales agent by providing insurance education, training to quality for licensing, independent office space and clerical support services.
Independent insurance agents may not get extra benefits but are paid higher commission helping them pay their expenses to market insurance. Insurance agents who are involved with financial planning receive fee for their services instead of commission.
How to choose best Insurance company?
Choosing best insurance company mainly depends on the type of insurance that you wish to deal with. Basically, there are two types of insurance Life Insurance and General Insurance also referred as Life and Non-Life insurance.
Life Insurance is typically long term investment tool that pays beneficiary, generally the family upon the death of policyholder.
On other hand, general insurance comprises of various categories that include health insurance, automobile insurance, homeowner’s insurance or rental insurance that are designed to cover professional and business liabilities.
First, the insurance agent needs to decide whether he wants to sell life insurance products, general insurance products or both of them. He requires separate license to sell different types of insurance.
Next, insurance agent needs to research various insurance companies available in the market, countrywide network presence, their products, sales of each product, consumer base etc. The performance parameters of the insurance company in each of the available products will decide demand and popularity of that product.
Let us have glimpse of insurance companies of India:
Life Insurance Corporation (LIC)
LIC of India is biggest government-owned company that deals with life insurance products. LIC India finances 24% of outlays of Government of India.
To join as an LIC agent, visit here.
Products: Offers individual and employee group insurance products
Bajaj Allianz is private insurance company dealing with general insurance run in joint venture between Bajaj Auto Limited and Allianz SE enjoys reputation of proficiency, strength and stability.
It has network presence in over 200 towns across country. Check more details to become an insurance agents at Bajaj Allianz.
Products: Offers travel, health, motor and corporate insurance products
ICICI Lombard is private insurance company dealing general insurance is joint venture between ICICI Bank Limited (second largest bank in India) and Canada based Fairfax Financial holdings Limited.
Check here how to become ICICI Lombard insurance agent.
Products: Offers health, motor and home insurance products
Tata AIG is private insurance company dealing general insurance products operate in joint venture between TATA Sons and American International Group. More details and insurance agents form can be downloaded here for TATA AIG.
Products: Offers complete range of general insurance products like personal accident, travel, automobile, property, home, energy, marine and casualty, etc. It offers individual, small business and corporate insurance products
National insurance is fully owned by Government of India and became National subsidiary of General Insurance Corporation of India (GIC).
Check more about this, visit NationalInsuranceIndia website.
Products: Offers personal, rural, industrial and commercial line insurance
New India Assurance
New India Assurance is leading global insurance company which is only Indian insurance company been rated by international rating agency (with ‘A’ rating). It deals with general insurance. Check & fill up the agent recruitment form.
Products: Offers personal, social, commercial, industrial, liability and credit insurance products.
Oriental insurance is nationalized insurance company dealing with general insurance products. Products: offers Individual/family health products and motor policies.
Tips to become successful Insurance Agent
To become successful insurance agent you need to have firm grip on insurance based financial products, be informed about most interested products, stay relevant and build reputable name in customer service. Let us know in detail:
Be good student to become good insurance agent: Keep yourself updated with changes in tax and insurance laws by attending conferences and seminars sponsored by insurance organizations. Try to create one-stop destination where client get comprehensive financial services and satisfactory insurance product knowledge.
Be competitive by incorporating new technology to grow your business: Internet has contributed a lot in growing insurance business online. Especially, several insurance agents turn to receive hot, timely leads with directly email of fax machine allowing serious customers to directly remain in contact with their agent. Even Pay-per-click advertising has shown effective results to insurance agents with various terms like “affordable insurance” etc.
Be good at customer service to build satisfied clientele and lead to more referrals: Undoubtedly, consumers are going to internet to shop for insurance but majority of them still prefers to get policy by sitting down with an agent.
This attitude reinforces importance of superior customer service inspiring client confidence through effective communication. Appoint customer service executive handling client request, amendments in policies that allow preserving existing clients and finding new clients.
So this way, you can become a successful insurance agent & I hope you make lots of money as an insurance agent.