Insurance Agent vs POSP Difference Between an Insurance Agent vs POSP (2024)

Insurance Agent vs POSP Difference Between an Insurance Agent vs POSP (1)

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Insurance Agent vs POSP Difference Between an Insurance Agent vs POSP (4)

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Insurance Agent vs POSP Difference Between an Insurance Agent vs POSP (7)

Insurance PoSP vs Agent - What’s the difference?

Insurance is a rapidly growing industry in India. To enhance the penetration of insurance in the country, the Insurance Regulatory and Development Authority of India (IRDAI) came up with a new model for insurance distribution in 2015. This model gave birth to Point of Sales Persons (PoSP). PoSPs can undergo basic training and certification, post which they can sell a variety of pre-underwritten insurance products to their customers.
So how exactly does a PoSP differ from a traditional insurance agent? For starters, PoSP need a minimum qualification of just 10th pass to qualify. The training and certification is also basic and easy to follow for beginners, who may not have in-depth knowledge of insurance products. It is an ideal choice for people looking to enter the industry and start a flourishing career.

Let’s look at the differences in detail.

PoSP Download app Agent
Training 15 hours 25 hours
Examination Conducted by the insurer Conducted by IRDAI
What can they sell? A POSP can sell simple, transparent insurance plans which provide complete protection and tax benefits. They sell products that are pre-underwritten and specifically approved by IRDAI for solicitation through POSP. These products are pretty basic, so they come with clear and straight fixed benefits and do not need elaborate explanations for the customer. A PoSP cannot sell complicated or high-risk products. An agent can sell all approved products whether pre-underwritten or tailor-made for their customers. They can help their prospects customise policies to meet their exact needs, and advice clients on policy matters. They can sell complicated as well as high-risk products.
What type of customer base do they target? A PoSP primarily caters to the customers looking for simple and basic insurance policies. For e.g., car insurance/two-wheeler insurance policies, comprehensive health policies, etc. An agent caters to all customers whether looking for simple or complex and customised insurance solutions - for e.g. marine insurance.
Which type of products can they sell? A PoSP can sell policies like motor, health, personal accident etc., which are mainly pre-underwritten products. Based on the information provided by the prospect, the insurance policy is automatically generated by the system. An agent can sell motor, health, travel, personal accident etc. as well as customised products like fire, marine and similar business insurance products. They can also sell high sum insured options in the pre-underwritten products.
What is the validity of the certification? The certification is valid for 3 years. The certification is valid until the individual surrenders the agency.
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Insurance Agent vs POSP Difference Between an Insurance Agent vs POSP (2024)

FAQs

Insurance Agent vs POSP Difference Between an Insurance Agent vs POSP? ›

Insurance agents can sell a variety of products, including motor, health, travel, personal accident, and customized products like fire and marine insurance. They can also offer high-sum insured options. PoSPs mainly sell pre-underwritten products such as motor, health, and personal accident insurance.

What is the difference between an agent and a posp? ›

A PoSP primarily caters to the customers looking for simple and basic insurance policies. For e.g., car insurance/two-wheeler insurance policies, comprehensive health policies, etc. An agent caters to all customers whether looking for simple or complex and customised insurance solutions - for e.g. marine insurance.

What are the two basic types of insurance agents? ›

There are two types of insurance agents:
  • Captive agents typically represent only one specific insurance company.
  • Independent insurance agents typically represent more than one insurer.
Sep 22, 2023

Who is a POSP? ›

What exactly is POSP? POSP stands for Point of Sales Person. A POSP is essentially an insurance agent, who has the authority to sell insurance policies directly to consumers.

What is a POS agent? ›

POS stands for Point of Sales agent. While that may not appear to be the most glamorous industry title, it is a serious job and career for many POS agents. Typically, POS insurance brokers are able to provide you with insurance over various verticals including, life, health, vehicle, property, business and more.

What counts as an insurance agent? ›

An insurance agent is a salesperson who sells insurance policies based on their customers' requirements.

What is the process of POSP? ›

The large intestine absorbs water and changes the waste from liquid into stool. Peristalsis helps move the stool into your rectum. Rectum. The lower end of your large intestine, the rectum, stores stool until it pushes stool out of your anus during a bowel movement.

What type of insurance agent makes the most money? ›

High Paying Insurance Jobs
  • Health Insurance Specialist. ...
  • Insurance Broker. ...
  • Liability Claims Representative. ...
  • Insurance Adjuster. ...
  • Insurance Manager. ...
  • Final Expense Agent. ...
  • Life Insurance Actuary. Salary range: $79,500-$98,500 per year. ...
  • Insurance Loss Control Surveyor. Salary range: $79,500-$98,500 per year.

Why did I quit being an insurance agent? ›

#1 Low Motivation

To be a thriving insurance agent, you have to want to succeed. Failure to work hard is one of the top reasons people in this industry want to call it quits. While it's true that this job isn't easy, it's also true that it can be very rewarding when you allow it to be.

What are the three 3 main types of insurance? ›

Although there are many insurance policy types, some of the most common are life, health, homeowners, and auto. The right type of insurance for you will depend on your goals and financial situation. Consumer Financial Protection Bureau.

What is a POSP point of sale? ›

A POSP (Point of Sales Person) insurance agent is an intermediary authorized to sell insurance policies directly to customers at the point of sale. These agents play a crucial role in distributing insurance products, offering convenience and accessibility.

What do insurance agents call their customers? ›

I refer to the ones who “get it” as clients and the others as customers. After looking for definitions for these names, I'm thoroughly convinced, clients are the people who appreciate, and actually deserve a true insurance professional.

What is the difference between PPO and POS insurance? ›

In general, the biggest difference between PPO vs. POS plans is flexibility. A PPO, or Preferred Provider Organization, offers a lot of flexibility to see the doctors you want, at a higher cost. POS, or Point of Service plans , have lower costs, but with fewer choices.

How do I become a POS agent? ›

Now, let's explore the steps to becoming a POS agent:
  1. Step 1: Choose a Trusted Agency Banking Partner. ...
  2. Step 2: Meet the Requirements. ...
  3. Step 3: Registration and Training. ...
  4. Step 4: Get Your POS Terminal. ...
  5. Step 5: Start Transactions. ...
  6. Step 6: Promote Your Services. ...
  7. Step 7: Earn Commissions.
Sep 4, 2023

How much do POS agents charge? ›

For withdrawals up to N1,000 and N2,400, Nigerians are expected to pay a service charge of N100; withdrawal from N2,500 to N4,000 will incur a service charge of N200; withdrawal from N4,100 to N6,400, will incur a service fee N300; withdrawal from N6,100 to N7,400 will now attract a service charge of N400; withdrawal ...

How do I become a POS provider? ›

To get started, there are just three simple steps to follow:
  1. Sign Up for an account.
  2. Activate the account by completing the POS reseller program partner agreement. Once active, you will have access to our knowledge database with training videos, expert guidance and more. ...
  3. Start selling to new merchant clients.

What is the difference between insurance consultant and agent? ›

The key distinction between the two terms is that insurance solicitors represent insurance agents and companies, while insurance consultants are generally objective third-parties who work on behalf of the insured.

What does posp mean? ›

POSP means Point of Sale Person as defined in guidelines issued by IRDAI relating to POSP's for Insurers (Life, Non-Life & Health).

Are insurance brokers and agents the same? ›

Insurance agents and insurance brokers can both help you buy an insurance policy. But insurance agents represent the insurance provider that employs them and help sell policies from that single provider. Insurance brokers represent the consumers who use them and can help them shop for policies from multiple providers.

What is the difference between a TPA and an agent? ›

Definition of TPA in Insurance

It's worth noting that TPAs differ from traditional insurance agents or brokers because they do not sell insurance policies directly to consumers. Instead, they work behind the scenes to manage claims and provide other support services on behalf of insurers.

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