Few industries outside of the financial service sector offer the professionals to make significant income within their first year of employment. Within the financial services industry itself, few careers match the opportunity for a quick and large paycheck as does being a general insurance agent. In fact, a hard-working insurance agent can easily earn more than Rs 200,000 in his or her first year of sales. So if you have high energy levels and are good in relationship building, this sector is made for you.
India’s non-life insurance sector is on an upswing. The industry has grown comprehensively over the few years. There is a vast, untapped business potential, especially in non-metro cities and semi-urban areas. The need for non-life insurance is also increasing across market segments. Interestingly, the introduction of free pricing regime – where general insurance companies are free to fix premiums and offer discounts, promises to give a much needed boost to the sector.
While there are many kinds of general insurance, the best money in the insurance field is for those selling Auto and Health insurance. Agents focusing on this end of the insurance market help families, businesses, employers, and other parties to protect against a financial loss that occurs when someone falls ill or the vehicle gets damaged.
The typical insurance agent is going to spend the bulk of his or her time engaging in some type of marketing activities to identify people who might be in need of new or additional insurance coverage, providing them with quotes from IFFCO Tokio and then persuading them to sign the new insurance contract.
Typically, a general insurance agent receives 10% of the amount paid (also known as the premium) by the client in the first year and subsequent years.
Let's look at an example:-
Ram - The insurance agent sells Auto policy that covers the client’s vehicle for the whole year. Ram’s insurance company pays a 10% commission on auto policies, which means the selling agent receives 10% of the first year premium and 10% of future renewals.
The policy costs client RS 10,000 per year. Thus, in the first year, Ram will make Rs 1,000 commission on selling this auto insurance policy (Rs 10,000 x 10%). In all subsequent years, Ram will make same 10% in renewals as long as customer continues to pay the premiums. Ram selling one or two policies per week at this level could make him Rs 50,000 to Rs 100,000 in his first year as an agent.