What is POSP in Insurance?

“Increasing insurance penetration in India by providing customized solutions”

In today’s India, insurance is growing rapidly. To increase the distribution of insurance in India IRDAI) (Insurance Regulatory and Development Authority of India) came up with an insurance distribution model, which leads to the existence of POSP in insurance. 

So, what is POSP in insurance? 

A POSP is a Point of Sales Person. He is an IRDAI-certified insurance agent who works like a middleman between insurance companies and customers. One is specialized in selling simple retail products like term life insurance or health insurance. They directly communicate with insurers, providing them personalized advice that aligns perfectly with their needs. Basically, the person works like a distribution channel, making insurance policies more available for people. 

First of all, POSPs go through a basic training or certification process to sell a variety of underwritten insurance products. The training is quite easy with some easy-to-follow basic steps and doesn’t require in-depth knowledge of insurance products. 

What is PSP in insurance: Key Highlights!

A point of salesperson is a licensed agent who works with simplified insurance retail products. 

Primary Role

He acts as a middleman between customers and insurance providers by educating potential customers on product benefits, which leads to their interest in buying specific insurance products. Their job is so hard because they have to sell simple products where the benefits are outlined clearly up front. 

Benefits 

• Benefits for Agents: There is great earning potential in the field, along with perks. One has to work in flexible hours while earning lots of commissions on the policies that they sell. 
• Benefits for customers: With more information, customers can make better decisions for themselves. Also, they will get education on various types of available policies, making it easy for them to choose the one that is perfectly aligned with their needs. 

Required eligibility

Any person aged 18 or older with a 10th-grade qualification can apply to become a posp after completing basic training and obtaining certification. 

Key responsibilities

The main job of a POSP is to deliver personalized service to customers, providing them with satisfactory and informed insurance purchasing experiences. 

• Selling insurance policies

The first and primary purpose of a POSP is to sell various kinds of insurance policies, including health, life, motor and general insurance. First of all, they assess the basic needs of the customers to advise them on the best policy that suits their needs. 

• Offering customized advice

POSPs are trained to assess the specific requirements of each customer, providing them with tailored solutions so they can easily choose the right insurance policy according to their needs. Their training makes them different from traditional insurance agents. 

• Provide education and customer support.

They not only sell products but also educate customers regarding the features, benefits and limitations of the products so they can make an informed decision. This leads to more satisfaction for customers when they are purchasing any product or service. 

• Work with compliance 

They have to work in compliance with the regulatory rules and guidelines. They are responsible for ensuring that all the transactions made during the process are in compliance with the legal standards. 

End Note: 

Knowing more about POSP is good for both the insurer and the customer. Companies are using POSP to provide catered solutions to their customers, improving their customer experiences with them.