Indonesia also has a variety of insurance companies. Some provide sharia and conventional insurance. Some provide life or health protection. In fact, the times have also brought online insurance that you can order like shopping online.
Obviously a popular insurance product in Indonesia. People are starting to realize the importance of health due to the pandemic. Because of that, job opportunities in the insurance world were formed, namely as insurance agents.
If you are interested in this one job, make sure you read this article to the end!
What is an Insurance Agent?
In other articles we have discussed the meaning of insurance , types of insurance , insurance benefits , and insurance functions . Now we will review more fully about insurance agents.
An insurance agent is someone who works as a marketer for insurance products. Usually the agent becomes a "bridge" between the Insurance Company (as the Insurer) and you who want to get risk protection (as the Insured).
By law, the definition of an insurance agent according to Law No. 2 of 1992 in Article 1 Paragraph 10 is as follows:
Insurance agent is a person or legal entity whose activities are to provide services in marketing insurance services for and on behalf of the Insurer.
Meanwhile, according to the definition from OJK (Financial Services Authority):
Insurance agent is a person who works alone or works for a business entity, who acts for and on behalf of an insurance company or sharia insurance company and fulfills the requirements to represent an insurance company or sharia insurance company in marketing insurance products or sharia insurance products as referred to in the Act. Number 40 of 2014 concerning Insurance.
So How Does an Insurance Agent Work?
Insurance agents will generally offer insurance products to potential customers. If the potential customer is interested, the insurance agent will explain the information about the insurance product and establish an agreement between the potential customer and the insurance company. The agreement is written in an official document called an Insurance Policy .
After that, the insurance agent will get a portion of the commission from the sale. If later there is a claim for the risk that has been agreed in the Policy, the customer can directly submit it through an insurance agent.
What are the Duties of an Insurance Agent?
The responsibilities of an insurance agent are quite a lot. They must be able to explain insurance products well, sell products in the right way, and be the "face" of the insurance company.
Therefore, the work is quite heavy. However, it's definitely worth it. The responsibility of insurance agents also falls from 4 perspectives, namely:
- Tasks on self . An insurance agent must be able to develop himself. Whether it's how to communicate with others, develop emotional intelligence, to be mentally strong to deal with rejection. Therefore, an agent must be able to take responsibility for himself and follow existing developments and adapt.
- Assignments to the Company . Agents need to be able to understand how insurance works, as well as the specific insurance products that the company offers. Therefore, the agent must also be able to adapt to the company.
- Assignments to the Customer . As a client of an Insurance Company, the Customer as a Policy Holder or the Insured needs to understand product information. Therefore, insurance agents are tasked with establishing good relationships, as well as helping customers to understand insurance products further.
- Duty to Society . Not only customers, the agent's duty to provide accurate information also applies to the wider community. In this way, others can also create a more positive perspective on the Company, as well as the insurance industry as a whole.
Terms and How to Be a Good Insurance Agent
Becoming an insurance agent is not easy. There are many regulations that you need to comply with, either from the government or from the Company's own policies.
According to Government Regulation no. 73 of 1992 in its 27th article, there are several regulations regarding insurance agents, namely:
- You can only be an insurance agent at 1 insurance company;
- There must be an agency agreement between you and the insurance company;
- The insurance company is responsible for all your actions related to purchasing, registering, or processing insurance transactions;
- You are required to provide information about insurance product offers accurately and clearly.
- Good at communicating . Insurance products are complex, therefore you must be able to explain the product in an elaborate, clear, and easy to understand way. That way, potential customers are interested.
- Understand the product . It's useless to be good at communication if you don't understand insurance. Therefore, first understand the ins and outs of insurance products. Especially the insurance product of the company you are applying for.
- Passion for learning . Insurance products are constantly changing. New products, new information. The approach to prospective customers continues to grow, according to the product market segment, right? Therefore, you must be passionate about learning so you don't get out of date!
- Emotional intelligence . If you only understand the product, potential customers are not necessarily interested in buying. Maybe they understand but are not interested. Therefore, you as an agent must be able to build emotional closeness with potential customers through your emotional intelligence. That way, they will believe in you.
- persistent . Working in product marketing is not easy. You need a strong mentality to move forward even if the client rejects you. You also need to be able to achieve certain targets that the company gives you.
So, how do you become an agent?
After fulfilling the requirements as above, you can prepare for your career as an insurance agent. You need to have certain qualifications, for example an agency certificate, registration with OJK, and others.
Based on OJK regulations, here are the qualifications you need to prepare:
- Choose a good insurance company . There are many insurance companies in Indonesia. It is better if you apply to a credible company. Investigate the company's background first, as well as the pros and cons of being an agent. When you have compared, choose the one that you think suits you best.
- Do agency registration . Prospective agents need to register. Here you will also choose the type of insurance that you will market. For example, special health insurance only, or vehicle insurance. That way, your career will be more focused.
- Take training . When the company has accepted your application as an agent, you will usually attend agency training. Usually they will teach you about insurance products and how to market them.
- Get AAJI certificate . If you have completed the training, you can get a certificate from the Indonesian Life Insurance Association. This certificate shows that you are officially an insurance agent and have the right to market insurance products.
After following the qualifications above, don't forget to continue to obey the rules! Whether it's from OJK regulations, AAJI, or the policies of the insurance company where you work. That way, your credibility as an insurance agent remains good.
How much is the Insurance Agent Commission?
Because not everyone can and wants to become an insurance agent, the agent commission is also quite high. In general, the income of an insurance agent depends on how many policies he manages to sell per month.
The commission is also in accordance with the API ( annual premium income ) or annual premium income. The amount of commission also depends on the company, but in general it is around 5-30 percent.
For example, suppose you have 25 customers with a premium of IDR 1 million each per month, where the annual premium is IDR 12 million. From there, customer premiums generate investment benefits of IDR 8 million per year.
API: 25 x IDR 8 Million = IDR 200 Million.
With an API of IDR 200 million and a commission of 30%, you will earn IDR 60 million per year, or IDR 5 million per month. That's only if you have 25 customers. Imagine if you have 50 or 100 customers.
If you reach a certain target, the company can give you a bonus. This bonus can be in the form of additional incentives, holidays, to free walks. Therefore, you must be persistent when you become an insurance agent.
Tips for becoming an agent for success
Even though the income is decent, the effort you need to spend is not small. So that you become a successful agent, make sure you follow the following steps!
- Help customers solve problems . Insurance products should be able to solve the problems of prospective customers. Therefore, you need to explain how the products you offer can solve customer problems. The trick is to find out how customers feel about insurance and what they really want in life.
- Provide the best service . Not only persuading customers to start insurance, but to stay insured. Therefore, the service must be good. That way, customers can also recommend the product and you to their acquaintances or family.
- Gives positive energy . If you always look cheerful and optimistic as an insurance agent, then other people will be happier interacting with you.
- Be a sincere listener . Agents must be able to be sincere listeners, while helping with complaints, desires, fears, and expectations that customers have about insurance products.
So, after knowing complete information about insurance agents, are you interested in a career there? To be sure, keep abreast of developments in the insurance world, especially the transition to online insurance such as The Newbie. If you're curious, let's just check what The Newbie is like!
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