By Mr. Aditya Sharma, Chief Distribution Officer – Retail Sales, Bajaj Allianz General Insurance

When you evaluate career prospects, what are the key points that you consider? In my experience, most people look for career opportunities that offer stability, growth, work satisfaction, and holistic development. At times you crave independence, you want to be your own boss, and of course, decide what you want to earn and grow at your own pace. You want to be an entrepreneur but are confused as to how to go about it and what to choose. One such business that offers all the ingredients for building a lasting and happy career, wiping the tears of customers, has unlimited potential and earning capabilities, is the business of becoming an Insurance advisor.

The insurance business is a distribution-driven business, and the agency channel is one of the most robust distribution channels in the sector. An insurance advisor is a representative of the insurance company and sells its products and services on its behalf in return for a commission. In India, agents have played an instrumental role in spreading insurance and taking it to the masses. Insurance agents are part of an increasingly innovative and dynamic field that attracts people from all walks of life. An insurance advisor holds deep knowledge about various insurance products, understands the requirements of their customers, and helps them choose the right products.

This business offers you ample opportunities to interact with people from across industries and from across the socio-economic spectrum; there are very few careers that enable you to spread your network far and wide like that of an advisor. Over the period, insurance advisor acquires impeccable communication skills, people skills, problem-solving abilities, and much more which ensures their holistic development. If you are someone who is looking for a meaningful career, and you desire to make a difference in society, then the career of an insurance advisor will appeal to you. You will be instrumental in improving the financial literacy of your customers, helping bolster their financial security, assisting them during the time of claims, thereby contributing to strengthening the economic fabric of our country.

If you are wondering about other distribution channels, then I must tell you that becoming an advisor is just one option. This industry offers avenues to enter other distribution channels such as corporate agents, web aggregators, brokers and PoSP.

• PoSP – An Interesting distribution channel is that of a PoSP (Point of Salesperson), if you already have a shop/kirana store and have a great network along with which you are looking for avenues to expand your revenue, becoming a PoSP advisor is an excellent option. You will get the opportunity to offer more value to your customers and protect them against various risks. To become a PoSP you must be 18 years old, and hold a Aadhaar and PAN card. You should have cleared 10th standard or equivalent examination. You will have to undergo a 15-hours compulsory training as mandated by the insurance regulator IRDAI.

• Agent: An agent is a representative of insurance company and sells their products and services. As an insurance agent you will play an active role in insurance distribution, you will help your customers pick the right insurance product for them and provide them financial security. To become an insurance agent, you have to go through 50 hours of training and clear the pre-licensing examination. To become a composite agent (who can sell general and life insurance products) you have to undertake 75 hours training. The minimum qualification to become an agent is to clear the 12th standard or equivalent examination, if you reside in a place with a population of more than 5,000; you should have cleared 10th standard or equivalent examination in case your place of residence has a population less than 5,000, which means you can start your journey at a very early age.

• Corporate Agent - A corporate agent is a corporate entity that represents an insurance company and sells its products and services. Unlike an individual agent, a corporate agent has the freedom to sell policies of more than one insurer. A corporate agent can represent up to three insurers in each line of business, i.e, life, general, and health. If you already have a corporate entity, or are running a financial institution and are looking for options to expand your business, here is an interesting opportunity to enter the insurance distribution and expand your offerings to your customers. A corporate agent has to pay a fee of ₹ 10,000 during the time of registration; they have to further pay a fees of ₹ 25,000 once they receive communication from the authority for grant of registration.

• Broker - Insurance brokers represent the clients and help them identify business-related risks and find appropriate risk management solutions. If you have an interest in commercial insurance and wish to expand your horizons, you can become an insurance broker and help your corporate clients to manage and mitigate their risks. To become a direct broker you require a capital of ₹ 75 lakh; you require ₹ 4 crore and ₹ 5 crore to become a re-insurance broker or composite broker respectively.

• Web Aggregator - Web aggregators collate and provide a comparative analysis of products offered by various insurers. If you are fascinated by technology and understand it well, you can venture to become a web aggregator. They provide information and detailed comparative analysis of products of various insurers, highlighting features and benefits of each product on their website or online portal. The minimum capital requirement to become a web aggregator is ₹ 25 lakh. The Principal Officer must be a graduate, must have gone through the required qualification as mandated by IRDAI as per IWA regulations. 

 The insurance distribution business requires a fine balance of collaboration, digitization, and integration. You can enter any of the distribution channel as per your interests and inclination. Talking about financial growth, I know many people from humble backgrounds, who started their careers as insurance advisor and grew by leaps and bounds. Many of our advisors and partners who build their career in insurance distribution have witnessed an outstanding growth and prosperity in their lives. The classic narratives of people living in rented one-room apartments to owning bungalows, from riding bicycles to owning luxury cars, from starting with a garage to opening multiple offices across locations, are common in this career.

The Indian insurance industry is at the cusp of interesting times, today the industry offers a wide range of products from health cover to motor cover, from cyber-risk insurance to pet-dog insurance; from agriculture to aviation, the industry has covers for all classes of customers. Insurance is going to occupy the center stage in the years to come, it is a great time to enter the sector and flourish as the industry reaches new heights. This career offers unlimited earning potential, a chance to travel the world, opportunity to build a lasting legacy and make an impact in society. So, what you are waiting for?

Get your license and embark on this amazing journey of fulfilling all your dreams and aspirations!.