The importance of licensing and certification in becoming an agent

certification in becoming an agent

In a world where every day there are growing concerns over health risks and cries over the rising cost of availing treatment for these risks, health insurance plays a vital role in solving this issue for most people. They offer the solution to those not covered under free healthcare or those who wish to receive better treatment and safely live their lives.

However, despite its potential and growing popularity, due to several factors like lack of customer knowledge or the fear of missing out, choosing something as critical as health insurance can be daunting. To reduce these occurrences and simplify the purchase process, insurers and the government have been making strides in educating customers and helping them choose the right policy for their needs with the help of campaigns conducted by insurance agents.

This article will explore the critical role an agent plays in the purchase process of insurance and the importance of licensing and certification when becoming an insurance agent and aiding the agent and the customer in getting a more valuable experience.

Who is a licensed insurance agent?

A licensed insurance agent is an intermediary between an insurance provider and its customers, where it showcases policies offered by the insurer and helps guide potential customers through the selection and purchase process of insurance. A licensed agent in current times, beyond just a sales role, fulfills an advisory function that helps customers select the best solution to their pain points and needs.

What role does an agent play in the insurance purchase process?

Whenever purchasing an insurance policy, many people search for or ask about the best insurance policy. The answer can be many things, depending on who is asking. If someone is looking at insurance in the form of financial planning, the policy offering better tax returns is better. However, for someone suffering from diabetes or hypertension, an insurance policy with pre-existing diseases and coverage for these risks might be instrumental.

This is where an insurance agent comes in and plays an integral part in the insurance purchase process. They listen to the needs and requirements and understand the customer’s pain points, essentially what they are trying to achieve through this policy. After understanding this, they showcase their policies to present the variances and see what a customer resonates with. Based on this, they share their recommendations and explain the policy details, pricing, exclusions, fine print, and the claims process. Once these are done, they will help the customer through the purchase process following any pre-policy check-ups, etc.

What is the importance of licensing and certification in becoming an agent?

In India, every insurance agent is licensed by the IRDAI following a training process. The licensing process is simple, allowing anyone to become an agent; however, it is integral to ensuring that an agent understands their role, the products they are selling, and the process to recommend and suggest the right policy for a customer’s needs.

As health insurance plays a critical role in ensuring a policyholder’s financial and medical well-being, selecting the right policy makes a big difference between the confidence and the value it presents. A lacking or irrelevant policy can lead to deficient coverage, which might provide minimal claim settlement or be rejected by the insurer.

Here, understanding the customer’s needs, the products offered, and the industry can make the process simpler and more beneficial, allowing the customer to live their lives with confidence and peace of mind.

Conclusion

Every year, as thousands of individuals join this lucrative industry, there are dozens, if not hundreds, of questions surrounding the various aspects of this sector, whether it is about the eligibility criteria, the examination process, the difficulty, the benefits, and whether someone should consider becoming an agent.

While all of these questions are different articles, the importance of licensing can be showcased simply by why a doctor needs 10-14 years of training and education to become one. It is a part of the industry that enables new and existing insurance agents to do their jobs correctly and successfully.

Also Read: Ultimate Guide on Health Insurance Options for Long Stay Expats in Thailand