A Career in Sales of Insurance Products
Insurance is a legal contract between two parties- the insurance company (insurer) and the insured company or individual, wherein the insurance company promises to compensate for financial losses due to contingencies contracted in return for the premiums paid by the insured. In simple words, insurance is a risk transfer mechanism, where you transfer your risk to the insurance company and get the cover for financial loss that you may face due to unforeseen events. And the amount that you pay for this arrangement is called premium and the contract a policy.
The concept of insurance works on the basis of ‘risk pooling’. When you buy any type of insurance policy from the insurance company for a specified period with specific cover, you will make regular payments (referred to as premiums) towards the policy. Similarly, Insurance Company collects premium from all of its clients (referred to as insured) and pools the money collected to pay for losses arising out of an insured event. In case the insured event takes place, and you make a claim, losses will be compensated by the insurance company from the pool of policyholder’s premiums. In case you don’t make a claim during the specified policy period, no benefits will be paid to you. However, there are various types of products offered by insurance companies today which also involve savings element attached to it.
There are various types of insurance products available in India. Mainly, insurance products are classified as:
1. Life insurance products
2. General insurance products
Life insurance covers you against the risk of death. Life insurance policies come in many variants such as term plans, endowment plans, whole life insurance plans, money back plans and unit-linked investment plans etc. Many life insurance products can be a great tool for long-term savings also as it comes as a combination of protection and savings.
General insurance products cover financial losses caused by various risks other than death. General insurance products come in various types covering a wide range of risks such as health insurance, motor insurance, marine insurance, liability insurance, travel insurance and commercial insurance etc.
In summary, insurance is an effective risk management tool that protects what is precious for us –life, health, home and business etc.
The insurance industry of India has 58 insurance companies, including 34 non-life insurers (25 general insurers, 7 standalone health, 2 specialized insurers), and 24 life insurers. Other stakeholders in the Indian Insurance market include agents (individual and corporate), brokers, surveyors and third-party administrators servicing health insurance claims.
The insurance industry in India has witnessed an impressive growth rate over the last two decades driven by the greater private sector participation and an improvement in distribution capabilities, along with substantial improvements in operational efficiencies. In this period there has also been an introduction of a huge number of advanced products. This has led to a tough competition with a positive and healthy outcome. Insurance sector in India plays a dynamic role in the well being of its economy. It substantially increases the opportunities for savings amongst the individuals, safeguards their future and helps the insurance sector form a massive pool of funds. With the help of these funds, the insurance sector highly contributes to the capital markets, thereby increasing large infrastructure developments in India.
This sector not only provides a protective shield to the lives and assets of the nation but also generate thousands of jobs and career opportunities. In this sector, there is demand for advisors, sales & marketing specialists, customer service representatives, human resource professionals.
The sales executive is the entry-level position of insurance product sales. His/her responsibilities are to:
- Research and source potential clients and build long-term relationships with them.
- Persuade prospective clients to engage in a phone conversation and/or meeting to discuss insurance products.
- Advise clients on the insurance policies that best suit their needs.
- Customize insurance programs to suit individual clients.
- Deliver approved policies to new clients and explain benefits and risks of the policy.
- Ensure customer satisfaction through regular engagement.
- Resolve customer queries/issues and facilitate customer service.
- Re-assess the policy needs of existing clients after life-changing events.
- Fill-out and submit applications, issue quotes, maintain client records and prepare reports.
- Achieving the monthly sales targets, assigned to him/her, for various products and services.
- Follow the various internal guidelines and procedures of the company.
- Maintain periodic status reports, including daily activity report and calls/follow-ups made.
- Keep abreast of industry and market trends and best practices.
| Education Pathway | ||
|---|---|---|
| Undergraduate | Post-Graduate | Some Colleges |
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B.Voc. Banking & Financial Services B.Voc. Banking Financial Services and Insurance BBA (Banking, Financial Services and Insurance) BBA (Sales and Marketing) BBA | MBA Sales & Marketing |
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