How To Become an Insurance Advisor in India

An insurance advisor is one who represents insurance providers to offer advice to clients about the various policies they can choose from. Not only does an insurance advisor suggest policies suited to clients’ needs, but they also solve any queries customers might have about the policies, as well as educate them regarding the ins and outs of every policy. As per the Insurance and Regulatory Authority of India, there are three types of insurance advisors.  But have you ever wondered how to become insurance advisor? Find out the details from this blog. 

Who is an Insurance Advisor?

An insurance advisor is a licensed professional who aids individuals and business owners in choosing appropriate insurance policies to meet their needs and financial plans. They provide advice on all forms of insurance, such as life, health, motor and general insurance plans.

Advisors interpret policy language and steer clients into the right coverage. They also help with claims and aspirations, making the whole thing easy and frustration free. 

Types of Insurance Consultants

We will get to how to become an insurance agent. But let’s discuss the types first:

1. Internal insurance sales agent: This insurance consultant is a full-time employee of an insurance company. She works for a specific company only and therefore offers consultation and advisory services on the company’s policies only.
2. Captive insurance agent: A captive insurance agent refers to one who works to sell just one of the products of an insurance company.
3. Independent broker/Point of Sales: A point-of-sales person is an insurance agent who is IRDAI approved, who has the benefit of offering a bouquet of policies from a variety of insurance companies to their customer. A license code affiliated with the IRDAI is given to every PSOP so they have the freedom to work with multiple companies and sell multiple insurance policies to clients at one time.

Eligibility Criteria to become an Insurance Consultant

Some basic eligibility criteria need to be fulfilled for those wondering how to be insurance agent:

• Education: The applicant needs to have passed the tenth standard.
• Age: The applicant should be over the age of 18 years.
• IRDAI Certification: The applicant should be certified by the Insurance Regulatory and Development Authority of India (IRDAI).
• State License: Each Indian state has a license for the insurance business. One simply needs to qualify for the state-level exam in order to get a license as per the state’s regulatory policies.

Role of Insurance Advisor 

• Assess the financial goals, family responsibilities, and risk profile of the client.
• Suggest the right insurance plans, like life, health, or moto,r based on individual needs.
• Clearly explain policy terms, coverage, exclusions, and benefits in simple language.
• Help clients fill out application forms and gather necessary documents.
• Guide clients through the claim process to ensure smooth and timely settlements.
• Remind and assist clients with timely renewals to avoid policy lapses.
• Stay connected with clients to review and update their insurance needs over time.
• Keep up with changes in insurance products and regulations to provide accurate advice.

Procedure to Become an Insurance Consultant

The following procedure needs to be mapped out if one wishes to become an insurance consultant.

• Registration: First, log on to the insurer’s website. Seek out the insurance agent application, and submit your basic details as required.
• Training: Next, you will be required to complete the basic training that has been mandated by the IRDAI, which can be online or offline. This training typically takes 15 hours and can easily be completed within two to three days. After completion, the applicant will be provided with a certificate from the insurance advisor commission.
• Exam for License: Once the training is complete, the applicant must sit through a pre-licensing insurance advisor exam in order to qualify for this training. The format of this exam is one that is objective. One is required to score a minimum of 17 out of 50 marks in order to qualify as an insurance agent.
• Receiving the License: Once the exam is passed, the candidate is now qualified to work as an insurance consultant. The IRDAI will award the candidate the license to practice as a certified insurance agent.

The Bottom Line: Tips on Being a Good Insurance Advisor

As market conditions constantly fluctuate, it is always good to upskill oneself. Being an insurance salesperson, either as a part-time or full-time job, is a great skill to acquire in today’s world. Not only is the process of training to be an agent easy, but the job also doesn’t tie you to a work desk for 8 hours every day. To become a great insurance consultant, ensure you seek out common ground when communicating with your client. After breaking the ice, build your pitch by creating interest in what you are saying.

Simply knowing about policies is often not enough. Good insurance agents are aware of the current political and social climate, updated with the latest news stories and good with data. Each of these can strengthen one’s pitch, as well as the ability to find a good client-product fit. Finally, a good insurance agent is equipped with the marketing tools of the times. From sending clients e-brochures to forwarding website links as needed, the insurance agent should be a wellspring of information and sources so the client can learn as much about an insurance policy as possible.

Frequently Asked Questions

1. Who can become an insurance advisor in India?

Anyone above 18 years of age with at least a Class 10 (SSC) qualification can become an insurance advisor. You must also complete the IRDAI training and pass the required licensing exam.

2. How does an insurance advisor earn income?

Insurance advisors earn commissions from insurance companies on the policies they sell. The income increases based on the number and type of policies sold and renewed.

3. Is training mandatory to become an insurance advisor?

Yes, IRDAI mandates a training programme before you can appear for the advisor exam. The training helps you understand insurance basics, regulations, and selling ethics.

4. Can an insurance advisor work with more than one company?

For life insurance, an advisor can represent only one insurer. However, for general insurance, IRDAI allows advisors to work with multiple insurers under certain conditions.