Agent (Life Advisor)

The traditional way to purchase an insurance policy is to go through the insurance agents. The meaning of an agent and their role is discussed below.

Who is an agent (Life Advisor)?

An insurance agent, often referred to as a “Life Advisor” in the insurance industry, is an individual licensed by an insurance company to sell insurance products and provide advisory services to customers. Their primary role is to help individuals and businesses understand their insurance needs, select appropriate insurance policies, and facilitate the purchase of these policies.

Licensing and Regulation for Agents

Insurance agents are required to obtain a license from the Insurance Regulatory and Development Authority of India (IRDAI) to operate legally. The IRDAI is the regulatory body responsible for overseeing the insurance industry in the country. Agents must meet specific qualifications and pass examinations to acquire this license, ensuring they possess the necessary knowledge and expertise to advise clients on insurance matters.

What are the types of agents?

There are various types of insurance agents, including

Individual Agents – These agents work independently and represent one or more insurance companies. They provide personalized insurance solutions and build relationships with clients.

Corporate Agents – These agents are entities, such as banks, financial institutions, or large organizations, that have agreements with insurance companies to distribute their products. They often have a wide customer base.

Insurance Brokers – Unlike agents, brokers are independent intermediaries who work on behalf of the policyholder rather than the insurance company. They provide impartial advice and help clients choose the best insurance policies from multiple insurers.