Insurance is one of the very big business in India and more &
more companies are entering the market to fulfill this requirement and
make money. More then 90% of the business is generated
by insurance agents and that is the reason insurance agents makes lots of money. So let’s read further more about insurance business and how to become an insurance agent.
We face lot of risk in our daily lives where some of these lead to financial losses. Insurance is the way of protecting against these financial losses. Insurance company takes responsibility of compensating your financial losses to an extent for which you have paid an amount known as premium. Thus, insurance is commercial mechanism of transferring risk and spreading loss.
Insurance does not deal with risk coverage but it is widely accepted as an investment platform. Life and health related insurance even offers tax aid. Insurance industry is expected to grow as fast as average of all other occupations through year 2018. Insurance sector in terms of employment is expected to increase by 12% over 2008-2018 periods. Future demand for insurance will largely depend on variety of financial products and volume of sales. The growing population will sharp rise in sales of products designed especially for elderly people with health insurance, long term care insurance and other comprehensive financial planning services. Even new insurance business shows gradual rise in demand of automobiles, homes, and high-priced valuables and equipment insurance. Even the sale of commercial insurance is increasing with workers’ compensation, product liability, employee benefits and population liability insurance. In this growing rise in demand of insurance products, insurance agent career will definitely change your lifestyle.
Eligibility to become an insurance agent requires college degree in business or economics. High school graduate who have proven sales ability can also become insurance agent. You need to pass an exam conducted by IRDA. You can check some of the sample IRDA papers.
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.
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.
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:
Products: Offers travel, health, motor and corporate insurance products
Products: Offers health, motor and home insurance products
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
Products: Offers personal, rural, industrial and commercial line insurance
Products: Offers personal, social, commercial, industrial, liability and credit insurance products.
Products: Offers individual and employee group insurance products
Apart from this, few other private insurance companies that exist are Birla Sun Life Insurance, ING Vysya Life insurance, HDFC Standard Life Insurance, Max Life insurance company, etc.
by insurance agents and that is the reason insurance agents makes lots of money. So let’s read further more about insurance business and how to become an insurance agent.
We face lot of risk in our daily lives where some of these lead to financial losses. Insurance is the way of protecting against these financial losses. Insurance company takes responsibility of compensating your financial losses to an extent for which you have paid an amount known as premium. Thus, insurance is commercial mechanism of transferring risk and spreading loss.
Insurance does not deal with risk coverage but it is widely accepted as an investment platform. Life and health related insurance even offers tax aid. Insurance industry is expected to grow as fast as average of all other occupations through year 2018. Insurance sector in terms of employment is expected to increase by 12% over 2008-2018 periods. Future demand for insurance will largely depend on variety of financial products and volume of sales. The growing population will sharp rise in sales of products designed especially for elderly people with health insurance, long term care insurance and other comprehensive financial planning services. Even new insurance business shows gradual rise in demand of automobiles, homes, and high-priced valuables and equipment insurance. Even the sale of commercial insurance is increasing with workers’ compensation, product liability, employee benefits and population liability insurance. In this growing rise in demand of insurance products, insurance agent career will definitely change your lifestyle.
Eligibility and Criteria to become an insurance agent
Insurance agent or insurance sales agent requires helping clients (individuals, families or businesses) choosing 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. Insurance agent can deal insurance products like life, health, disability, causality and long term care policies. They can sell variable annuities, mutual funds and other securities also.Eligibility to become an insurance agent requires college degree in business or economics. High school graduate who have proven sales ability can also become insurance agent. You need to pass an exam conducted by IRDA. You can check some of the sample IRDA papers.
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:
Bajaj Allianz
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 here to become an insurance agents at Bajaj AllianzProducts: Offers travel, health, motor and corporate insurance products
ICICI Lombard
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
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
National insurance is fully owned by Government of India and became National subsidiary of General Insurance Corporation of India (GIC). Check more about this here.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
Oriental insurance is nationalized insurance company dealing with general insurance products. Products: offers Individual/family health products and motor policiesLife 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
Apart from this, few other private insurance companies that exist are Birla Sun Life Insurance, ING Vysya Life insurance, HDFC Standard Life Insurance, Max Life insurance company, etc.
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