IKON
Every time Venkateswara Rao Vakalapudi thought of an insurance agent, he pictured a pesky person pushing policies under people’s noses. He was certain it was a profession he never wanted to pursue. Yet today, he is Life Insurance Corporation of India’s (LIC) record-breaking star insurance agent.
Last year, he brought in ₹51 crore worth of new business for LIC, setting an industry record. To put this in perspective, 60% of insurance agents in India generate business worth ₹2 lakh to ₹3 lakh annually.
Vakalapudi, 42, who grew up in a village in West Godavari, Andhra Pradesh, now drives a Range Rover Sport, owns a sea-facing bungalow in Vizag, and counts high-net-worth individuals (HNIs), non-resident Indians (NRIs), and corporate houses among his clients. He also travels globally for business and motivational speaking engagements.
In his first year, Vakalapudi sold 12 insurance policies, six to friends and the rest to customers in the poultry business. His journey took a significant turn when he was selected as a member of the Million Dollar Round Table (MDRT), a premier association of financial professionals. Attending the five-day MDRT meet in Las Vegas changed his view of the profession. “I realized an insurance agent is like a doctor,” he says, “helping people manage their lives and needs.”
Vakalapudi now operates two offices in Hyderabad and Vizag with a 15-member team and has launched a financial consultancy called Anand Jeevan.
What is the Job all about?
Insurance covers risk—whether it’s the risk of death, health issues, or property loss. The three main types of insurance are Life, Medical/Hospitalization, and Motor Vehicle/Property Insurance.
• Life Insurance protects the policyholder’s family in case of untimely death.
• Health/Hospitalization Insurance covers most hospital bills in case of surgery or other medical needs.
• Motor Vehicle/Property Insurance pays for damages in the event of an accident or property loss due to fire or other incidents.
Can you go for it?
Types of Job opportunities
There are four main areas of employment in the insurance industry:
1. Advisors or Agents
2. Administrators
3. Actuaries (see the separate chapter on Actuary)
4. Surveyors
1. Advisors or Agents
Advisors or agents are not on the direct payroll of the company; they work on a commission basis after passing the qualifying test. This role suits those with strong persuasion skills and persistence. Clients are often available only during odd hours, so flexibility is key. Given the wide range of insurance products available today, agents must also be familiar with competitors’ offerings to handle client queries effectively.
2. Administrators
Administrators lead teams of agents and advisors. Their role involves training, motivating, and guiding new agents, ensuring paperwork is correctly processed, and managing financial aspects.
3. Actuaries
Actuarial positions are suited for those strong in mathematics and statistics.
See the separate chapter on Actuary.
4. Surveyors
Surveyors work in two segments: first, estimating potential risks for new industries, and second, assessing actual losses after events like accidents or machinery failure. Professional engineers typically fill these roles, working either independently or with surveyor companies.
Is there a future in this field?
To succeed in insurance, you must be patient, have strong people skills, and accurately present facts. You should also be prepared to work late hours and on holidays, as potential customers may not be available during regular business hours. Convincing indecisive clients requires persistence and effective communication.
Where to Begin in Goa?
Becoming an Agent: After completing 10+2, candidates must undergo 50 hours of mandatory training and pass the IRDA (Insurance Regulatory and Development Authority) test to receive a license to operate as an agent. Relevant study materials are available through the Insurance Institute of India – www.insuranceinstituteofindia.com. Several institutions accredited by IRDA also provide the required training.
Becoming an Administrator: Administrators handle all aspects of administration, finance, and development. If you start as an agent, you can transition to a full-time role in an insurance company, such as LIC’s Assistant Administrative Officer (AAO). This promotional position involves marketing and selling policies. In multinational companies like ICICI Prudential, Tata AIG, or HDFC Standard Life, roles like Sales and Marketing Manager are highly attractive but require a strong track record and meeting annual targets.
Can an Agent join the Company on a full-time basis?
Yes, an Agent can join the company full-time, depending on available vacancies, their performance, and qualifications. While a 10+2 education is sufficient for an Agent role, a Graduate degree is required for positions such as Officer or Administrator.
For example, LIC offers the position of Assistant Administrative Officer (Development). Once selected, the primary responsibility is to promote the marketing and sale of policies by meeting with potential clients. This is a promotional role, where, after receiving the necessary training and gaining a few years of experience, the individual can be promoted to Administrative Officer (Development).
In multinational companies such as ICICI Prudential, Tata AIG, Allianz Bajaj, HDFC Standard Life, and SBI Life, the role of Sales and Marketing Manager is highly desirable. However, candidates for this position must have a strong track record and consistently meet the targets set for each year. It is also advisable to obtain insurance qualifications from institutions like Welingkar, ICFAI, Narsee Monjee, Symbiosis, or Amity.
Qualifications:
Surveyors need a license, which requires one of the following:
• Fellowship or Associate membership from the Institute of Insurance Surveyors and Adjusters (IISA).
• A degree or diploma in Engineering from a recognized university.
• Fellowship or Associate membership in Chartered Accountancy (CA) or ICWA.
• A degree or diploma in Naval Architecture.
Besides formal education (hard skills), success in insurance also depends on soft skills like empathy, creative thinking, problem-solving, communication, and customer service. You can learn these skills through online platforms like FITA Academy, Coursera, edX, and TCS (many of which are free). For public speaking, consider joining a Toastmasters International club in your city.
Monetary Potential:
1. Agents: Initially, companies may pay a stipend plus commission for a certain period. As agents gain experience, they rely solely on commissions, which are based on the policies sold. An agent with good networking and persuasive abilities might start by selling three to six policies per month, increasing as their network expands. Commissions are typically 25-35% of the premium paid. For example, if an agent collects premiums totaling ₹2 lakh in the first year, they might earn a commission of ₹50,000 per year.
2. Administrators: The pay scale for LIC AAO is ₹53,600 • ₹90,630, with an increment of ₹2,645 for 14 years. The basic pay starts at ₹53,600 and increases to ₹90,630, with a further increment of ₹2,865 for the next four years.
3. Surveyors: Surveyors can earn substantial fees depending on the nature of their assignments, often making above ₹2 lakh per month.
Don’t settle for just a degree or diploma — enhance your CV by completing online learning programs with certification in areas relevant to your chosen career. This will significantly improve your employment prospects compared to holding only a basic qualification. Additionally, consider boosting your confidence by enrolling in public speaking courses, such as those offered by Toastmasters International.
For government job opportunities, please check: www.employment-newspaper.com
page updated: August 2024