Insurance is a very vast concept. An individual needs to understand it completely in order to sell it in the market. One needs to understand the benefits it offers to pursue the buyer. Insurance products are not sold in shops or stores. This is where the advisor’s role comes into play. The insurance advisor or PoSP agent explains the complex terms in detail to the buyer. They help clients to buy suitable products. They have a key role to play in the distribution of policies.
Quick Link: Become an Insurance Agent
Insurance advisors or LIC agents are mediators between insurance companies and consumers. They bring them together by selling insurance products. An insurance advisor represents a particular or many insurance companies. This is done by selling the products offered by the insurer. In return, they receive reward for every policy they sell.
The LIC agents or a PoSP acts as an intermediary between the consumer and the insurer. They generate insurance business for the insurance company they work. They also represent their buyers to the insurance company. Therefore, they have a role to play towards both the buyer and the insurer. So, they can divide their role in two classes.
Here are the roles of LIC agents they play for the insurance company they represent.
This is the first role of the LIC agents to create new businesses for the insurance company they represent. A PoSP agent may achieve this by selling maximum insurance products to the buyers. Therefore, the PoSP agent should approach more people. They must explain to them the benefits of the insurance product offered by the insurer. In addition, they should make them realise the need for financial helps during a crisis. The insurance companies offer modules during the PoSP training. They must use such experiences in selling insurance products. The insurance companies offer a reward for every product they sell. So, they must try to sell as much product as they can.
Just selling the insurance policies may not help the insurance companies enough. The PoSP or LIC agent must ensure that their buyers like their services. They should try to retain the customer for the long term. Consistency has an important role to play in making profits. It shows that the consumers wish to continue with the same product for a long time. Persistency is also important for products like life insurance and other long-term plans. Under such plans, the consumer continues paying premiums for a long period. Therefore, the LIC agent must try their existing client to continue with the insurance coverage and its renewals.
The insurance company offers a commission on every product they sell. Therefore, they must promote the insurance companies they represent. The customer will only buy the product if they trust the insurance company. So, the LIC agents must build a positive image of the insurance company. They must put forward the benefits of every product they deal with. This improves the brand image of the insurance company. It also improves the goodwill of the LIC agents.
Insurance is a long-term product. The clients pay a premium for a long time. The insurance product helps the consumer to avoid financial emergencies. The consumers trust the LIC agent. Hence, the agents have some roles and responsibilities towards their clients. These roles help them to win the trust of the Client. Through such trust, the client can depend on their advice.
Here are the function of insurance agent.
The insurance advisor needs to find the client. He should understand the needs of the client. Based on the requirement he should offer the products to the client. The LIC agent can offer a suitable product once he understands the needs and requirements of the clients. The PoSP agent can position the right products according to the preference. So, fact-finding is the primary role that a PoSP agent should play in processing the sale of insurance.
The insurance advisor may proceed with the sale of insurance once he knows the financial details of the client. Finding financial goals is the next role of an insurance advisor. The insurance companies offer goal-oriented products. Such products are based on the financial goal of the client. Therefore, the PoSP insurance agent must understand the financial goal of the client. For example, if a consumer wants financial security, the consumer should offer the term insurance plan. If a consumer wishes to have health security, the PoSP insurance agent should offer the health insurance product. The insurance company also offers child life insurance products if the consumer wants to fulfil the child’s needs. So, the PoSP insurance agent cannot sell the right product unless or until he understands the financial goal of the client.
Once the PoS agent understands the goal of the client, he should offer suitable insurance products. The client can attain the benefits from the product if it matches his goal and requirements.
The client may have many objections during product selection. The PoS agent should handle the objection and guide the client.
The PoS agent must maintain a contract with the client. This is done to retain the client and handle their queries.
The PoSP must help the client during the claim clearance. He must guide him in filing the form. In addition, he must explain to him the technicalities and the claim process.
An individual has the same role to play whether he is a LIC agent or a PoS agent. He advises the client and sells the insurance product to the insurer. Nowadays, people prefer to become the PoS agent to sell multiple kinds of insurance products. However, the roles and responsibilities are the same as those of traditional agents.
A. Here are the roles of PoSP agents towards buyer.
A. PoSP full form in insurance is a Point of Sale Person.
A. Here are the responsibilities of PoSP insurance agents towards insurance companies.
A. A metric-passed 18-year-old individual is eligible to become an insurance PoS agent.
A. An individual needs to attend the training session and appear in the exam. Once he clears the exam, he may become the PoSP agent.
A. Yes, an LIC agent may also work as an insurance PoSP.
Insurance Exam Pattern- IRDAI
LIC Advisor Training
Importance of Post-Sale Service in Insurance
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