Democratising insurance: PoSP model’s impact on penetration, economy and employment in India

financialexpress.com:

By Susheel Tejuja

The insurance landscape in India has witnessed significant transformation in the last two decades, driven by government initiatives and increased awareness. A pivotal move in this evolution was the introduction of the Point of Sales Person (PoSP) model by the Insurance Regulatory and Development Authority of India (IRDAI) in 2015. The PoSP model framework is democratising insurance accessibility by introducing a novel avenue to enhance nationwide insurance penetration. In the insurance industry, the PoSP model stands as a formidable force, boasting a total network of over 14 lakh plus agents—merely 15% lower than the combined size of general and health insurer agent networks, as of 2022.

One of the remarkable achievements of the PoSP model lies in its ability to empower individuals from diverse backgrounds. With minimal training, even undergraduates can pursue careers as PoSPs; not just creating jobs but also fueling the nation’s economic growth. Serving as catalysts, these PoSP agents extend their reach to every family, aligning with IRDAI’s ambitious goal of insuring every Indian by 2047.

The true merit of the PoSP model lies in its user-friendly design, fostering a seamless dissemination of pre-underwritten insurance products. The simplicity and accessibility not only enhance the outreach of insurance offerings but also improve the overall efficacy and servicing of insurance policies. The PoSP framework represents a significant leap toward democratizing access to insurance services, acting as a launching pad for aspirants to embark on a rewarding career journey in the dynamic and growing insurance industry.

In just eight years, the number of PoSP agents has soared exponentially, trailing the