The insurance industry offers numerous career opportunities, with insurance agents leading the way in helping clients choose the right policies. There are two key types of agents, i.e., POSP (Point of Sale Person) and traditional insurance agents.
Although both sell insurance coverage, they differ in selling practices, certification, and work. A traditional insurance agent works offline with a face-to-face visit to clients. On the other hand, an online POSP insurance agent has an online selling advantage while working online.
Read on to explore the difference between a POSP and traditional insurance agents to determine which is best for you. Understanding these differences is crucial if you want to become a POSP insurance agent.
Who is a POSP Insurance Agent?
A POSP (Point of Sale Person) insurance agent has the license to sell insurance policies online. This was introduced to simplify insurance sales and make it more readily available.
POSP agents fall under the ambit of licensed insurance firms and can sell health, motor, and life insurance policies. In contrast to conventional agents, POSP agents do not need an office or much paperwork. They can register, train, and get certified online.
This is convenient for students, homemakers, and professionals looking to begin their insurance careers. The application process for POSP agents is fast and requires little documentation, making it a convenient option for people who want to work flexibly.
Who is a Traditional Insurance Agent?
A conventional insurance agent is a professional-trained expert retailing policy on direct person-to-person contact. They usually represent one insurer or even individual agents representing different insurers.
Their key job role is personally meeting clients, describing policies, filling papers, and serving claims and renewal. Traditional insurance agents use a formal method with formal training, certification, and in-person confirmation.
They have regular working hours compared to POSP agents. They establish customer relations by having direct contact with customers. Though it is more time-consuming, it enables the agents to develop trust with customers and earn commissions through long-term customer relationships.
Key Differences Between POSP vs Traditional Insurance Agents
POSP and general insurance agents have a significant role in the insurance industry. However, their working style, requirements, and incentives differ. The below table highlights the differences between them to help you decide better:
| Aspect | POSP Insurance Agent | Traditional Insurance Agent |
| Work Mode | Online, can sell policies through digital platforms. | Works offline and meets clients in person to sell insurance. |
| Flexibility | Full flexibility; can work part-time or full-time from anywhere. | Fixed working hours; requires in-person interactions. |
| Training & Certification | Quick and simple online training as per IRDAI guidelines. | Requires extensive training, exams, and certification. |
| Application Process | Online with minimal documentation. | Requires in-person verification and paperwork submission. |
| Eligibility Criteria | Basic qualifications (10th or 12th pass, depending on the policy type); no prior experience needed. | Higher education qualifications are preferred; some experience may be required. |
| Earnings | Commission-based; income depends on the number of policies sold. | You can earn a salary (if you work for a company) + commission. |
| Sales Approach | Digital, using social media, websites, and online marketing. | Direct selling through physical meetings and personal networking. |
| Products Sold | Limited to simple insurance policies like motor, health, and travel insurance. | Can sell all types of insurance, including complex financial products. |
| Customer Interaction | Online communication through calls, emails, and chat support. | In-person meetings and direct interactions with clients. |
| Market Reach | Wider reach due to digital platforms; can sell policies nationwide. | Limited reach; depends on personal connections and local networking. |
| Work Independence | Can work independently without a fixed employer. | Often tied to an insurance company, may have sales targets. |
| Growth Opportunities | Easier to start, but long-term growth depends on online sales skills. | More structured career path with opportunities for promotions and leadership roles. |
| Ease of Starting a Career | Simple and fast process; anyone can become a POSP insurance agent with basic training. | Requires licensing, documentation, and industry experience. |
Which One is Better?
Choosing to either become life insurance agent or a general insurance agent depends on professional goals and personal working style. Both professions have pros and cons; thus, it is critical to note them while choosing.
Choose POSP Agent If You:
- Like flexible timing and working remotely.
- Are eager to begin soon with minimal training and qualifications.
- Do not want to deal with physical records and online payments.
- Comfortable selling policies over the internet via digital platforms.
- Like commission-only income with no fixed salary.
Choose a Traditional Agent If You:
- Like dealing with customers face-to-face and establishing personal relationships.
- Want to work for an established company culture with scope for career progression.
- Will gladly spend extra time on training, licensing, and paperwork.
- Opt for a guaranteed salary besides commissions (where applicable).
- Have strong ties with people and prefer offline promotion over online selling.
The choice between the two depends on your working style and career objective. If you want to start immediately and can work from home, the best option is to become a POSP agent. However, a traditional agent job would be the best if you like dealing with people and want a long-term career.
Both professions possess promising futures in the insurance sector. Individuals can create a successful and profitable career in this field.