What is the difference between an Insurance Agent and Insurance Broker?

Many people use the terms Insurance Agent and Insurance Broker interchangeably, but they are different. Although both of them deal with insurance, they serve entirely different purposes. Knowing the difference between the two is vital for an aspiring agent, broker, or someone just looking to purchase a policy.

Who is an insurance agent?

An insurance agent is someone who connects with a potential customer to advise them and negotiate to sell them policies from one or more insurers. There are usually two kinds of agents, and the first one is an independent agent who works independently or for an agency representing multiple insurers. In comparison, some exclusive agents are affiliated with and represent a single insurer and are usually full-time employees for them.

Who is an insurance broker?

An insurance broker is someone who works on behalf of their clients independently of insurers. They typically buy, sell, and negotiate plans from several insurers that best suit their customers' needs. A broker might need a strong network of regular clients and insurers to increase their income.

What are the differences between the two?

There are several differences between an agent and a broker. These differences go from their job to the investment required and benefits offered by becoming one. 

While becoming an agent requires minimal to no investment, becoming an insurance broker involves a significant investment, including holding money in a fixed deposit. There are also differences in affiliation and representation. While an agent represents their employing company, a broker represents their clients. 

Beyond this, there is also a difference in how agents and brokers earn money. Agents are paid in the form of salaries, sales commissions, and bonuses, while brokers are paid commissions from the insurer while earning a consultation fee from their client after a deal is made. 

The insurance regulatory authority of IRDAI directly licenses insurance brokers, and any grievance against them can be brought up to them. Insurance agents are also primarily governed by the IRDAI, and one can complain about any grievance to the affiliated company.

Why become an agent for Niva Bupa?

If you are someone who has decided to become an insurance agent, then Niva Bupa might be the right option for you. We offer diverse career opportunities facilitating growth. With salaries ranging from ₹20,000 to  ₹50,000 and a competitive sales commission along with other perks and benefits, if you are someone who thinks they will be good at helping people find the best plan for their needs and have a knack for learning, then you will be a great fit with us.

How to become an agent for Niva Bupa?

Becoming an agent for Niva Bupa is very simple. One can visit our website or this page https://www.nivabupa.com/become-an-agent-portal.html to get help throughout the entire process of becoming an agent. 

Once you are sure that you fulfill these simple criteria, you can apply to become an agent. You must ensure you are over 18 and have a valid Aadhaar and PAN Card. And that you have completed your 10th if you are from a rural area and 12th if you are from an urban area. 

You will also be required to take a 15-hour IRDAI-mandated training to complete your Point of Sales Person certification and obtain a license to become an insurance agent. This process usually takes a few weeks but is very simple. 

You just need to follow the given instructions, and you should be good to go!

1. You must complete the Point of Sales Person form and submit the required documents.
2. Complete your training with Niva Bupa
3. Complete the simple prescribed examination
4. And sign the contract with Niva Bupa to get the title of POSP

Conclusion

Now that you know the difference between an insurance agent and an insurance broker, you can easily decide which career path you want to pursue and how. While if you wish to buy a policy, know you know whom to approach.