Insurance

The Importance of Getting a License for Insurance Agents: What You Need to Know

Insurance is a wonderful field to work in. Not only is it highly rewarding in terms of uncapped income potential and flexibility in work conditions for the agents, but it is also gratifying to see your work helping so many people during their times of need. But before becoming an insurance agent, there are some things you should know.

Let us explore what an agent in insurance’s job entails, why getting a license is essential, and how someone can get it for themselves.

What is an insurance agent?

An insurance agent is licensed by the Insurance Regulatory and Development Authority (IRDAI) in India to sell insurance products. These individuals sell insurance products from insurance providers they are affiliated with, whether as independent agents who are free to sell policies from any number of insurers as they want or as exclusive agents who sell policies from only a single insurer.

Agents and insurance brokers are responsible for advising potential customers about the various policies offered by the insurer and recommending the best policy based on their needs. Beyond this, they may also be responsible for explaining the policy in detail and providing financial advice.

Why is it essential for an agent to be licensed?

The IRDAI licenses all insurance agents in India after they complete their practical training and pass a licensing examination. This is essential because there are many things to know and consider when purchasing a policy, such as coverages, exclusions, claims ratios, special conditions, premium prices, etc.

There are a lot of different kinds of insurance someone might have to purchase over their lives, from auto and property to health and life insurance. While all of these insurances are important and cover vital aspects of our daily lives, some require much thought and consideration, such as health insurance.

As an agent specialising in health insurance, I have seen the importance of choosing the right insurance. That is because these policies impact the lives of the customers and can help them secure their health and well-being by being adequately covered. The license and the training help agents understand how to analyse the problem and be able to decide on the policy which is best for the customer. Along with this, it is also a way to hold agents accountable or to differentiate them from imposters.

How to get the license to become an agent?

Here is the process you can follow to get a license as an agent.

  1. Look for an insurance provider you would like to work with in the near future. I currently work for Niva Bupa and recommend them to aspirants looking to become agents.
  2. Visit their website and click on ‘Become an agent’
  3. Fill out the form and await a call back/email
  4. Visit their office to complete the mandatory training and prepare for the examination
  5. Attempt the examination and pass it to get a license
  6. Using that license, join them as a licensed insurance agent 

While becoming an agent requires no investment other than time, there are a few other requirements, such as an aspirant being at least 18 years old, completing the practical training, passing the licensing exam, and completing their 10th or 12th, depending on where they are from.

Conclusion

While becoming an insurance agent has a lot to offer, both in terms of benefits and flexibility, it is a critical role for your customers. This is why it is integral to be trained as an agent and to understand the customer’s needs along with the different insurance products and best practices to help customers and not bring a bad name to the industry.

Also Read: 5 Key Factors To Consider When Choosing An Accident Insurance Plan

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