How to Become an Insurance Agent in India: A Complete Guide to POSP Insurance Careers

In today’s dynamic financial ecosystem, insurance plays a vital role in offering security, stability, and peace of mind. Behind every insurance policy sold, there is often a diligent insurance agent who helps individuals and businesses make informed decisions. If you’re looking for a flexible, rewarding, and impactful career, becoming an insurance agent or a POSP insurance agent (Point of Sales Person) might be the perfect fit for you.

This guide walks you through what it means to become an insurance agent, how POS insurance works, and what opportunities lie ahead in this rapidly growing industry.

Who Is an Insurance Agent?

An insurance agent is a licensed professional who sells insurance policies to individuals or companies. These policies can include life insurance, health insurance, motor insurance, property insurance, and more. The role of an insurance agent is not just limited to sales. They also educate clients, assess risk, and recommend suitable products based on individual needs.

There are two main types of insurance agents in India:

1. Individual Agents – Tied to one specific insurance company.

2. Corporate Agents – Represent multiple insurers through a corporate license.

With the introduction of the POSP model (Point of Sales Person) by the Insurance Regulatory and Development Authority of India (IRDAI), becoming an insurance agent has become even more accessible to the average person.

What is POS Insurance?

POS insurance refers to insurance products that can be sold by POSPs, i.e., individuals certified to sell insurance with minimal training. These products are designed to be simple, easy-to-understand, and require limited paperwork.

A POSP (Point of Sales Person) can sell a variety of general and life insurance products, such as:

• Motor insurance

• Health insurance

• Travel insurance

• Personal accident cover

• Term life insurance (in some cases)

The concept of POS insurance was introduced to bring more people into the insurance selling ecosystem and improve penetration in rural and semi-urban areas.

Why Become an Insurance Agent or POSP?

There are multiple reasons why people choose to become insurance agents or insurance POSPs:

1. Flexible Working Hours

You control your schedule. Whether you want to work part-time or full-time, you can build a career that suits your lifestyle.

2. Unlimited Earning Potential

There is no upper cap on your income. Your earnings are directly proportional to your performance—more policies sold means higher commissions.

3. Low Entry Barrier

Becoming a POSP insurance agent does not require a college degree. Anyone who has completed the 10th standard and undergone training through a certified provider can apply.

4. Job Satisfaction

Insurance agents make a real impact on people’s lives by helping them secure their future, manage risks, and achieve financial security.

How to Become an Insurance Agent in India?

The process of becoming an insurance agent is simple and streamlined, especially with the POSP model.

Step 1: Choose an Insurance Company or Aggregator

You can directly approach an insurance company or sign up with an insurance aggregator platform. These platforms provide training, licensing, and digital tools to start your career as a POSP.

Step 2: Complete the Training

As per IRDAI guidelines, you must complete a minimum of 15 hours of training from an IRDAI-approved institution or partner. The training covers:

• Basics of insurance

• Types of insurance products

• Regulations and ethics

• Policy issuance processes

• Claims handling

Step 3: Pass the Examination

Once the training is completed, you must pass a simple online test. Upon passing, you will be awarded a POSP certificate and a license to sell specified insurance products.

Step 4: Start Selling Insurance

After certification, you can begin selling policies and earning commissions. Most platforms also provide a mobile app or dashboard for policy tracking, customer management, and digital documentation.

Skills Required to Succeed as an Insurance Agent

Success in this field is driven by a combination of interpersonal and technical skills:

• Good communication skills to explain policy terms and benefits

• Customer-first approach to build trust and long-term relationships

• Time management for handling multiple clients effectively

• Sales acumen to close deals

• Basic digital literacy to use insurance platforms and tools

Income and Career Growth

As an insurance POSP, your income is primarily commission-based. The commission rate varies depending on the product and insurer. On average:

• Motor Insurance: 10%–15%

• Health Insurance: 15%–25%

• Life Insurance: 20%–30% for the first year

Some experienced agents also receive renewal commissions, performance bonuses, and other incentives. With time, an agent can move into roles such as Senior Advisor, Agency Manager, or Branch Head.

Challenges of the Job

Like any profession, working as an insurance agent comes with its own set of challenges:

• Convincing skeptical clients

• Handling complex claims scenarios

• Maintaining consistent sales performance

• Keeping up with evolving insurance products and regulations

However, with the right support and continuous learning, these challenges can be overcome easily.

The Future of Insurance POSP in India

India has one of the lowest insurance penetration rates in the world. This presents a massive opportunity for individuals looking to become insurance agents or POSP advisors. With the government's push towards financial inclusion and digital transformation, the insurance sector is poised for rapid growth.

Additionally, insurtech platforms are making it easier than ever for POSP agents to access training, sell policies, and manage clients from the comfort of their homes.

Final Thoughts

Becoming an insurance agent or a POS insurance advisor is not just a job—it's a career that empowers you to help people secure their lives while building your own financial freedom. With minimal investment, a flexible schedule, and the potential for high income, the insurance POSP model is a gateway for anyone looking to enter the financial services sector.

Whether you're a homemaker, student, retired professional, or someone looking for a side hustle, this could be your chance to build a stable, impactful, and rewarding career.