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Preface: This post was originally published in 2023 and has been updated on August 30, 2025, to provide you with the most current and accurate information.
POSP full form in insurance is Point of Sales Person. A POSP is an insurance agent who is authorized by the Insurance Regulatory and Development Authority of India (IRDAI) to sell basic insurance products. If you want to find out how to become a POSP insurance agent in India, then check out this guide!
A POSP insurance agent is an IRDAI-certified individual authorized to sell simple, pre-underwritten insurance products such as health, motor and term life insurance directly to customers. They act as a direct sales channel and offer their guidance and assistance to help customers select suitable policies depending on their specific needs.
To become a POSP, you must complete the mandatory IRDAI-prescribed training and certification exam to obtain an IRDAI POSP license. After this, a POSP can sell different kinds of insurance products, including those that offer attractive earning potential.
The following are the benefits of becoming an insurance POSP agent:
Regular source of income with the opportunity to work from home. The working hours are also flexible and you can change them according to your convenience.
Zero investment is required to become an insurance PoSP and no need to pay in the training and application fees.
Helping people to secure their financial future through health insurance, life insurance, etc. against uncertainties.
Getting timely rewards and recognition for the policies you sell successfully.
Handle the work digitally and no need to carry insurance policy papers. The process becomes simple as everything is online. You can work from anywhere as per your choice.
Anyone who is looking for work-from-home opportunities and some side income then they can apply to become a POSP. Below are the criteria that must be fulfilled to become a point of sales person in insurance:
The person must be a resident of India.
Have a minimum age of 18 years.
Must have completed secondary school education, matriculation, or any other equivalent education.
Have a PAN Card and Aadhaar Card for identification.
Bank account with a cancelled cheque or 6-month bank statement.
Not be a PoSP of any other organization.
Becoming an insurance POSP agent is absolutely free of cost and the process is completely online. There is no application or training fees applicable. The following steps are required to become a POSP in India:
Step 1: Visit the POSP sign up page of the insurance company where you want to work as a POSP.
Step 2: Look for the POSP form on the insurer’s website and fill it with the necessary information.
Step 3: Now, you must complete 15 hours of IRDAI training and IRDAI certification exam, and obtain a POSP license to sell insurance products.
Step 4: After this, the insurance company will give you in-house training so you can become familiar with their products and polish your sales and marketing skills.
Step 5: Once you complete the in-house training successfully, the insurance company will issue an appointment letter to you.
Step 6: Once you have the license to sell insurance products and the appointment letter, you can start building a network, generate leads and begin your career as a point of sales person.
The following points must be kept in mind before becoming an insurance intermediary at a company:
The range of products offered by the company should be wide. For example, it must include health insurance, life insurance, motor insurance, travel, home insurance, etc. The more the products, the more it helps to increase the selling ratio.
No middleman should be included, you must work with the company directly.
The company must provide the POSP insurance agent commission even when the customers get onboard for the renewal of their policies.
There should be no hassle of paperwork, and the process must be online without less/no paperwork.
The commission should settle on a continuous basis for the policies that you sell quickly.
Should have a strong backend team who can help you throughout the selling process.
The following are the differences between POSP and an insurance agent:
|
Point of Difference |
POSP |
Insurance Agent |
|
Training |
15 hours of training is required. |
25-50 hours of training is required. |
|
Examination |
The insurer conducts the POSP exam. |
The insurance agents exam is conducted by IRDAI. |
|
Products or Services They Sell |
They sell simple and transparent products which provide complete protection and taxation benefits. Mainly products which are already approved by IRDAI. These plans are simple and come with fixed benefits and there is no need to elaborate too many features to the customer. The POSP cannot sell high-risk and complicated products. |
The insurance agents can sell both approved products which are pre-underwritten or tailor-made for their customers. Also, they can customize the policies to meet all the requirements of the customer. They can provide suggestions and can sell complicated and high-risk products. |
|
Target Customers |
The target customers of POSP are the ones who are looking for simple and basic insurance policies. For example - car insurance, two-wheeler insurance policies, comprehensive health insurance policies, etc. |
Their target customers are individuals who look for simple, complex or customized insurance policies. For example - marine insurance, wedding insurance, etc. |
|
Validity of Certification |
The POSP certification is valid for 3 years. |
The certification is valid till the individual is working for the agency, after he/she surrenders the certification validity will end. |
|
Representation |
The POSP represents the insurance company with which they are working. |
A broker represents the buyer, their responsibility is first towards the buyer and understanding their needs. Then, they help them choose the policy that meets their needs the best. |
|
Earnings |
They earn on the basis of commissions. In case they are working full-time, a salary aspect can be present. |
Brokers earn primarily on the basis of commissions. |
The full form of POSP is Point of Sales Person. If you are looking for a job that has flexible timings and allows you to help others build a secure financial future, then you can consider becoming an insurance POSP. The requirements are pretty basic and you only need to complete 15 hours of IRDAI-prescribed training, clear the certification exam and obtain a license. If you need any further information, you can connect with our IRDAI license consultants at Registrationwala.
Q1. What is POSP full form?
A. POSP full form is Point of Sales Person.
Q2. How many hours of IRDAI training does an individual need to complete to become a POSP?
A. An individual must complete 15 hours of mandatory IRDAI training to become a POSP.
Q3. Is it easier to become a POSP than a traditional insurance agent?
A. Yes, becoming a POSP is easier as compared to a traditional insurance agent. To become a POSP, the requirements are basic and you need to complete fewer hours of IRDAI training than a traditional insurance agent.
Q4. What is the minimum age requirement for becoming a POSP?
A. The minimum age requirement for becoming a POSP is 18 years of age.
Q5. What does a POSP do?
A. A POSP sells the basic, pre-underwritten insurance policies to customers on the basis of their requirements.
Q6. How much commission can I expect as a POSP agent?
A. The POSP insurance agent commission depends on the insurance company and the type of insurance policy. You can expect anywhere between 5-30% commission as a POSP agent.
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