by An insurance agent performs many important functions in the insurance system. Agents act as a bridge between insurance companies and policyholders. They help customers understand insurance products and choose suitable policies. Insurance agents also assist insurers in expanding business and reaching more people. In India, agents play a major role in spreading insurance awareness, especially in rural and semi urban areas. They not only sell policies but also provide after sales services. The functions of an insurance agent help protect policyholders’ interests and ensure smooth functioning of insurance business.
1. Procuring New Business
One of the main functions of an insurance agent is to procure new business for the insurance company. The agent identifies potential customers and explains the need for insurance. By meeting people and understanding their requirements, the agent convinces them to buy suitable insurance policies. This function helps increase insurance penetration and business growth. Procuring new business also helps insurers expand their market reach. Through this function, agents contribute directly to the development of the insurance sector.
2. Explaining Insurance Products
Insurance agents explain policy features, benefits, exclusions, and terms in simple language. Many customers find insurance documents difficult to understand. Agents help remove confusion by clearly explaining coverage and conditions. Proper explanation helps customers make informed decisions. This function reduces chances of misunderstanding and disputes at the time of claim. By guiding customers honestly, agents build trust and long term relationships.
3. Assisting in Proposal and Documentation
Insurance agents help customers fill proposal forms correctly. They guide policyholders in providing accurate information and required documents. Proper documentation is important for policy issuance and claim settlement. Errors in proposal forms may lead to claim rejection. By assisting in documentation, agents ensure accuracy and compliance with rules. This function saves time and reduces inconvenience for customers.
4. Collection of Premium
Insurance agents assist in collection of premium from policyholders. They inform customers about premium amount, due dates, and modes of payment. Timely premium payment helps keep policies active. Agents also remind customers about renewal to avoid policy lapse. This function ensures continuity of insurance coverage and regular income for insurers. It also helps customers avoid loss of benefits due to missed payments.
5. After Sales Service and Policy Servicing
Insurance agents provide after sales services such as policy renewal, change of address, nomination update, and issue of duplicate policy documents. They maintain regular contact with policyholders. This function improves customer satisfaction and retention. Good servicing builds confidence and strengthens the relationship between agent and customer. After sales service is an important part of professional insurance practice.
6. Assisting in Claim Settlement
Insurance agents help policyholders during claim settlement. They guide customers about claim procedure, documents required, and timelines. Claims usually arise during stressful situations. Agent support makes the process easier and smoother. Though agents do not decide claims, they act as facilitators. This function protects policyholders’ interests and improves trust in insurance services.
