How To Become An Insurance Agent In Nigeria

In Nigeria, choosing a career path can be a difficult choice. Nevertheless, if you’re looking for a position with enough flexibility, you should think about working as an insurance agent. The best time to become an insurance agent is right now because the sector is thriving and growing in Nigeria. In this post we are going to look at how to become an insurance agent in Nigeria.

Who Are Insurance Agents?

Sales of insurance policies to individuals, businesses, families, and other potential clients is the responsibility of insurance agents, who work for insurance companies. The representatives of the insurance industry are insurance agents, and they play a critical role in the promotion and adoption of insurance policies. They foster a personal relationship with policyholders. When personal contact is necessary to close an insurance contract and help potential policyholders with their purchase, these agents excel.

As a result, an insurance agent needs to be very knowledgeable about every service and policy that his or her company provides. They should also have the ability to sell, as this is a task that falls under their purview.

Insurance brokers should not be confused with insurance agents. An insurance broker is more on the side of the client; they use their expertise and knowledge to assist the client in selecting the best policy. To assist the client in making the best decision, he will compare and contrast insurance policies from various companies. Some insurance agents also market investment goods like mutual funds, variable annuities, and other securities.

How to become an Insurance agent in Nigeria?

First, you’ve to decide what kind you want to be. 

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Majorly there are two kinds of insurance, which are:

Life Insurance and Property and Casualty Insurance. Under these kinds, there are several subsets of insurance from car insurance, health insurance, fire insurance, home insurance, travel insurance, and so on.

What are the requirements for an Insurance Agent?

It is possible to become an agent with a minimum educational qualification such as the SSCE. It depends on the agency’s requirements. No particular field of study is required to become an insurance agent, but those with a background in marketing, economics, and finance may find it easier.

Becoming an insurance agent means you’ll need good sales, marketing, and customer skills which would help you attract prospective customers and set you apart from the rest. So, having a prior qualification in this field will give you an edge in this profession. Nonetheless, you can still learn on the job as insurance companies offer training to their agents.

Search and Apply for an Agency

You need to be appointed by an insurance company before you can sell their products. Depending on the company, you’ll need to go through background checks to be verified and granted an appointment that certifies you as an insurance agent. This is where the training highlighted earlier comes in. A company that intends to appoint you as their insurance agent will give you all the necessary training required. So you’ll need to do a search for insurance companies, or it’s easy if you already have one in mind.

Search and Maintain Clients

Now that you have been verified and have an appointment, it is time to begin your agency. Here’s where your marketing and sales skills will come to play. You can make use of several advertisement channels to sell yourself, such as social media, local newspapers, and posters. 

As a new insurance agent, it is necessary you familiarise yourself with the roles and responsibilities.

  • Assist in sales, advertising, and selling of products and services to its customers.
  • Possess sound knowledge and awareness of the markets.
  • Proffer reliable financial consulting services to customers as well as customer support to the client.
  • Create marketing strategies with the customer choice in mind
  • Possess excellent public relations capability in other to represent its agency.
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Role Of An Insurance Agent

Below are some of the roles of an insurance agent:

1. Market and sell insurance products

An insurance agent’s main responsibility is to sell the company’s insurance plans. They keep an eye out for potential customers. They use various methods to accomplish this, such as cold calling and cold emailing. Taking a strategic stance is another accepted technique. For instance, a car insurance agent might be found at a car dealership or repair shop.

2. Examine Policies

It is the agent’s responsibility to evaluate the client’s financial needs and suggest a policy that specifically addresses those needs if the client is having trouble making a decision.

3. Manage documents

All of the paperwork necessary to sell the policy must be handled by the agent. Evaluation of financial statements, criminal histories, ownership documentation, etc. are all part of the job.

4. Policy Management

Additionally, they process policy renewals, keep track of payments, and maintain records of every client and their policy. If a claim is made, the agent is required to investigate it and compensate the client appropriately.

How Many Insurance Agents Are In Nigeria?

In Nigeria, there are currently more than 15,000 insurance agents working for more than 460 brokers. Typically, the company hires and trains insurance agents. They receive introductory training on client interaction and communication as well as information on all the different insurance classes the company offers. They must meet monthly goals. Some insurance companies place them in pertinent organizations, while others give them free rein as long as they bring in customers. Most agents are paid by commission.

  • Captive Agents: A captive agent is one who only represents one organization, typically a sizable national insurer. The captive business offers the agent support and training. In exchange, the agent can only sell insurance for the business and cannot represent any other companies’ products. Many captive insurance agents are required to sign a non-compete agreement, which for a set amount of time restricts them to working only for one insurance provider.
  • Independent Agents: A person who works with multiple insurance companies is known as an independent agent or insurance broker. In order to find the best policies and prices, the agent gives customers budgets for multiple company policies. Although independent agents receive less training and support from the insurance companies they work with, they are more flexible in the products they offer. The road to becoming an independent insurance agent can be more difficult because agents must also develop their own brand in the markets where they operate rather than relying on the marketing assistance of well-known insurers.
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Duration To Become An Insurance Agent

Most people can develop into one in a matter of weeks. Your ability to complete an online course that calls for a specific number of study hours will heavily influence how long it takes you to get your license. Once your exam and background check are finished, there may also be a week or two of waiting before the license is issued.

Conclusion

These days, insurance companies are always on the lookout for insurance agents and proffer the training needed to become one. The information above is a guide to what is to be expected if you’re thinking of a career path in insurance and hope to become an insurance agent.

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