Build your career as Insurance Sales Person (ISP)

Who is Insurance Sales Person?

As the name suggests, an Insurance Sales Person (ISP) is an individual who solicits or procures insurance products. However, an ISP has to be employed by an Insurance Marketing Firm (IMF) for the purpose. An insurance marketing firm is an organisation engaged in marketing insurance products or services and has been registered with the authority i.e., IRDAI. This is a new business model and channel of distribution for insurance products introduced by the IRDAI.

Insurance marketing companies requires to employ Insurance Sales Persons (ISP) who conduct marketing and solicitation tasks of insurance and insurance related services. They also employ a financial executive called a financial service executive (FSE). These executives are in charge of promoting and soliciting insurance and non-insurance items respectively that are subject to different regulatory bodies.

ISPs that are engaged by the IMF are allowed to solicit and procure insurance products of those insurers with whom the IMF has entered into a tie-up/agreement

Other Role of Insurance Sales Person

An Insurance Marketing Firm can engage the Insurance Sales Person for the sale of both insurance and other financial products if he/she meets the qualification criteria and certification requirements as laid for Financial Service Person above.

Registration & Licence:

The ISP need to have acquired:

• Minimum qualification
• Minimum Training
• Appear and pass exam post training
• Shall apply to the Authority for grant of registration to act as Insurance Sales Person in the Form as may be specified by the Authority.

Earnings

The IMF must include the relevant conditions including condition of remuneration and incentives and other clauses like code of conduct, engagement with the firm, sales process and rules etc. in the agreement with ISP.

The remuneration paid to ISP should be on a salary and incentive basis for the solicitation and procurement of policies. The salary can be a fixed minimum monthly salary as per the applicable laws. Variable pay over and above the fixed monthly salary may also be payable depending on the arrangement between the IMF and the ISP.

The Insurance Marketing Firm, depending upon ISPs performance can pay an ISP additional incentive, which are declared upfront and form part of the employment agreement between him and the Insurance Marketing Firm.

Qualification required:

• The minimum qualifications of an insurance sales person are that he must pass in class 12th or equivalent examination from a recognised Board/ Institution.
• Should be resident in the area where IMF is located.

Training & Examination

The ISP shall undergo Fifty Hours of Insurance Marketing Firm training from an institution recognised by the Authority, and should pass an examination, at the end of the period of training, conducted by the Examination Body recognised by the Authority. However, he/she can undergo 25 hours of training in case, the ISP has any one of the following qualifications :

• Associate/ Fellow of the Insurance Institute of India, Mumbai.
• Associate/ Fellow of the Institute of Actuaries of India.
• Associate/Fellow of Chartered Insurance Institute, London.
• Postgraduate qualification of the Institute of Insurance and Risk Management, Hyderabad.

Training Materials

The Training material and self-assessment content shall be in digital downloadable format and shall be hosted under a suitable Learning Management System by any institution as approved by the Authority from time to time.

1. The self-assessment tests are conducted in multiple-choice models.
2. The candidate shall register on the Learning Management System website and complete the training.
3. The candidate shall download the digital training content to his PC/laptop and complete the self-learning modules.
4. At the end of each module the candidate shall complete the self-assessment test. The Learning Management System shall not allow the candidate to complete more than two self-assessment tests per day.
5. On completion of the self-assessment test for each of the module, the candidate shall earn one hour training credit.
6. The candidate shall complete all the self-learning modules and self-assessment tests online to earn the credit for 50 hours training/25 hours training as the case may be.
7. The Insurance Marketing Firm training is same as that of Insurance Brokers training and the Insurance Marketing Firm examination shall be same as that the Insurance Brokers' Examination

Examination & Certificate

1. The online examination is conducted by approved institute in their centres spread across India.
2. The candidate on completion of shall be eligible for appearing for the online examination.
3. The examination shall cover Life, General and Health insurance syllabus as prescribed by the Authority.
4. There shall be no limit for the number of attempts for appearing the examination by the candidate.
5. Candidates who are declared 'pass' in the examination will be issued a Certificate, by the Examination Body;
6. The examination institute will forward a copy of the certificate and the data of the candidates who have passed the exam to the Authority in the electronic format prescribed by the Authority.
7. The Authority will process the application of the Applicant and consider issuance of registration, as per eligibility conditions prescribed in the Regulations.

What is the difference between insurance Agent and Insurance Sales Person?

Both are Insurance Agent and ISP solicits insurance policies. However, an ISP is employed by an Insurance Marketing Firm. An Agent can either be employed and exclusive work as Captive insurance agent for an Insurer or he can also act as independent insurance Agent.

Further information

For further information refer to Insurance Regulatory and Development Authority of India (Registration of Insurance Marketing Firm) Regulations, 2015