How Does a POSP Differ from an Insurance Agent?

The insurance sector in India is growing rapidly, and with that, new roles and opportunities are emerging. One such role is that of an insurance POSP, or Point of Sales Person. While many people are familiar with the traditional insurance agent, the concept of an insurance POSP is still new to many.

In this blog, we’ll clearly explain the differences between an insurance POSP and an insurance agent. This will help you understand both roles better—whether you are planning to buy insurance or looking to start a career in this field.

What Is an Insurance Agent?

An insurance agent is a licensed individual who sells insurance policies on behalf of one or more insurance companies. They act as a bridge between customers and insurers, helping people choose the right insurance products based on their needs.

Key Duties of an Insurance Agent:

• Selling various insurance products such as life, health, motor, and more.
• Guiding customers through the buying process.
• Helping clients renew policies and settle claims.
• Meeting the sales targets given by the insurance company.

To become an insurance agent, a person must complete the required training and pass the IRDAI licensing exam.

What Is an Insurance POSP?

An insurance POSP (Point of Sales Person) is someone who is trained and authorized to sell simple and pre-approved insurance products. This role was introduced by the Insurance Regulatory and Development Authority of India (IRDAI) to make insurance more accessible.

Unlike traditional agents, an insurance POSP can start selling insurance after just a few hours of training, without a formal exam. They often sell policies using digital platforms, making the process fast and paperless.

Key Duties of an Insurance POSP:

• Selling basic insurance products like motor, health, and term life policies.
• Using mobile or computer tools to complete sales.
• Educating customers about simple plans.
• Providing customer support with policy renewals or queries.

Main Differences Between an Insurance POSP and an Insurance Agent

Let’s break down the differences in simple terms so you can see how these two roles compare.

1. Training and Qualification

• Insurance Agent: Needs 50 hours of training (25 hours for some graduates) and must pass a licensing exam by IRDAI.
• Insurance POSP: Needs only 15 hours of training. No exam is required.

 Conclusion: It is quicker and easier to become an insurance POSP.

2. Type of Insurance Products

• Insurance Agent: Can sell all kinds of insurance products—complex and simple.
• Insurance POSP: Can sell only basic, pre-approved products like health, motor, and pure term life insurance.

 Conclusion: Insurance agents have access to a wider range of products, while insurance POSPs focus on simpler ones.

3. Licensing and Registration

• Insurance Agent: Must be licensed by IRDAI and registered with one insurance company.
• Insurance POSP: No license from IRDAI is needed. They register directly with insurers or brokers.

 Conclusion: Insurance POSPs enjoy a simpler registration process.

4. Mode of Work

• Insurance Agent: Often meets clients in person and uses paperwork to complete sales.
• Insurance POSP: Works digitally using mobile apps or online portals. Most tasks are done online.

 Conclusion: Insurance POSPs have more flexibility and can work remotely.

5. Earning Potential

• Insurance Agent: Can earn higher commissions, especially by selling long-term and complex insurance plans.
• Insurance POSP: Earnings are based on volume. They may earn smaller commissions per sale but can earn well by selling more policies.

 Conclusion: Insurance agents can earn more over time, but insurance POSPs can also build strong income with consistent effort.

6. Work Commitment

• Insurance Agent: Usually a full-time commitment, with regular targets and responsibilities.
• Insurance POSP: Ideal for part-time work or side income. No strict targets or office requirements.

 Conclusion: Insurance POSP roles offer more freedom and flexibility.

Who Should Become an Insurance POSP?

Becoming an insurance POSP is a great choice for:

• Students looking for part-time income.
• Homemakers who want to work from home.
• Retired individuals seeking a flexible job.
• Anyone who wants to start a career in insurance quickly and easily.

You can become an insurance POSP without leaving your current job. All you need is a smartphone or computer, internet access, and basic training from an insurer or insurance broker.

Who Should Become an Insurance Agent?

Becoming a traditional insurance agent is a better fit if:

• You want a full-time career in insurance.
• You’re ready to undergo more training and pass an exam.
• You aim to sell high-value and long-term insurance plans.
• You’re interested in building long-term client relationships.

This role requires more responsibility but also comes with higher rewards and long-term growth.

Final Thoughts

Both insurance POSPs and insurance agents are important to the insurance ecosystem. Each has its own advantages. If you're looking for a flexible, easy-to-start role that allows you to earn by working from home, becoming an insurance POSP is a great option.

On the other hand, if you're ready for a full-time career with deeper involvement and higher income potential, then working as an insurance agent might be the right path for you.

Whatever you choose, both roles allow you to make a real difference by helping people protect their health, vehicles, and future. The insurance industry is growing, and there’s a place for everyone—whether you’re a full-time professional or just starting out as an insurance POSP.