Roles and Responsibilities Between Insurance Agent & POS Agent?

The insurance penetration in India has grown tremendously over the years. Intermediaries, such as insurance and Point-Of-Sale (POS) agents, have significantly contributed to this growth. Both these titles are often used interchangeably. But do you know that they are not the same and play different roles in the insurance industry? 

This article will compare the roles of insurance and POS agents and discuss the features that set them apart. Let's get started!

The Role of an Insurance Agent

An insurance agent undergoes rigorous training and examinations to obtain the necessary licenses to sell insurance policies. They can work independently or be affiliated with a specific insurance company. They serve as a bridge to connect customers with suitable coverage options.

Key Responsibilities

• Policy Sales: This involves understanding the client's needs, explaining different policy options, and recommending coverage that aligns with the client's requirements.
   
• Risk Assessment: By evaluating factors such as age, health, lifestyle, and occupation, insurance agents determine the risk involved in selling a plan to an individual.
   
• Client Education: Agents educate clients about insurance policies, including their terms, conditions, and coverage limits. 
   
• Claims Assistance: These agents guide clients through the claims process. They ensure that all necessary documentation is submitted and facilitate a smooth claims settlement.
   
• Policy Renewals: They communicate with clients before the expiration of a policy to discuss potential changes in coverage, update information, and renew the policy if needed.
   

The Role of a POS Agent

On the other hand, a Point of Service (POS) agent is a distinct category within the insurance industry. Insurance companies appoint POS agents to facilitate the sale of insurance policies at specific locations, such as banks, post offices, or other retail outlets. Unlike insurance agents, POS agents often do not have the authority to underwrite policies but serve as intermediaries to enhance the accessibility of insurance products.

Key Responsibilities

• Distribution of Policies: POS agents play a crucial role in expanding the distribution network of insurance products. They bring insurance closer to the public by making policies available in accessible locations.
• Customer Acquisition: POS agents focus on acquiring new customers by promoting and selling insurance policies at their designated points of service. They may also cross-sell or upsell additional products based on customer needs.
• Documentation and Processing: While POS agents may not underwrite policies, they assist customers in completing necessary documentation for policy issuance. They ensure that all required information is accurately collected and transmitted to the insurance company.
• Customer Service: POS agents serve as frontline representatives for the insurance company, addressing customer queries, providing basic information about policies, and assisting with initial inquiries.
• Promotional Activities: POS agents often engage in promotional activities to create awareness about insurance products. This can include organising events, distributing promotional materials, and collaborating with the host organisation to enhance visibility.

Also read: What is POSP Insurance Agent: A Step-by-Step Guide to Become a POSP Agent.
 

Insurance Agent vs POS Agent- At a Glance

Understanding the following differences is essential for consumers and industry professionals alike, as it helps clarify the distinct roles and responsibilities of insurance and POS agents.

Final Thoughts

Insurance advisors or licensed insurance agent have the authority to underwrite policies, assess risk, and provide comprehensive advisory services. On the other hand, POS agents focus on making insurance products more accessible by distributing policies at various points of service but typically do not have the authority to underwrite policies. 

Health insurance agents, as well as POS agents, ensure the widespread availability and understanding of medical insurance plans. They contribute to the overall resilience and stability of the insurance industry. Thus, if you are considering a career in the health insurance sector, both these roles can offer a rewarding career path.

We at Niva Bupa can support your journey as a health insurance agent or POS agent. We offer competitive cash and non-cash incentives, flexible work schedules, and training support. Reach out to us now and start your journey as an insurance agent health care service provider!