Close ILTakeCare Suggestion
IL TakeCare app – For all your insurance & wellness needs

Policy purchase, claims, renewal & more

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.
Register as a PoSP Register as an Agent

Error message here