POSP vs Agent. What IRDAI’s Classifications Mean for You (and Your Business)

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Confused Between POSP, Agent, and Broker?

If you’re in insurance sales, you’ve probably heard these terms flying around: POSP. Agent. Broker. Composite. Individual. Corporate.

But do you really know what they mean—and what they mean for you?

More importantly, do you know:

• What you are allowed to sell?

• Who owns the client?

• What kind of training or certifications you need?

• How your commission or renewals will work?

Most insurance sellers don’t.

And that’s why the IRDAI’s new clarification is a big deal. In this blog, we’ll break it down in simple terms.

Agent Saathi executive explaining the difference between POS and Agency

🏛️ What IRDAI Just Did

IRDAI has been on a mission to simplify India’s insurance distribution structure. In March 2024, it issued a draft on Intermediary Classification that does the following:

✅ Combines multiple outdated categories into just 3 main types

✅ Lays out clear rules on who can do what

✅ Emphasizes flexibility + better access for new entrants

Here’s the simplified classification:

Category	Can Sell?	Needs IRDAI Registration?	Example
Individual Insurance Intermediary	Life, Health, General	Individual Licensing	POSP, Individual Agent
Corporate Insurance Intermediary	Life, Health, General, Composite	Yes	Brokers, Web Aggregators, corporate agents etc
Others (Licensed Entities)	Specialized products or roles	Yes	Reinsurers, Surveyors, etc.

💡 What’s the Difference Between a POSP and an Agent?

Here’s the simplest breakdown:

Feature	POSP	Agent
Appointment	Through an Insurance Distributor (like PolicyBazaar, Turtlemint, banks, brokers)	Directly by an insurance company
Training	IRDAI-mandated training by the distributor	In-house training by the insurer
Product Access	Limited to the distributor’s tie-ups	Limited to the insurer you’re appointed with
Client Data Ownership	Stays with the distributor	Stays with the insurer
Revenue Share	Typically lower, and subject to platform deductions	Full commission (as per insurer terms)
Business Branding	Under platform	Own name and brand
Popular Use Case	Freelance sellers or part-time agents	Career agents or tied advisors

🤔 So Which Is Better?

There’s no right or wrong model. It depends on what kind of seller you are:

If You Want To...	Best Fit
Start quickly, with minimal friction	POSP
Build a long-term, independent insurance career	Agent
Open your own distribution or advisory firm	Corporate Intermediary (Broker)
Work across insurers and access complex products	Broker or Composite Agent

⚠️ What Sellers Get Wrong

Most POSP agents assume:

• They’re directly representing an insurer (they’re not)

• They will get renewals forever (not always)

• They can sell across insurers (only via tie-ups)

Many agents don’t realize:

• Their data is stored by the aggregator

• They’re bound by the platform’s internal sales structure

• Switching platforms often means starting from scratch

🛠️ Where Agent Saathi Comes In

We’re not a POSP platform. We’re not an insurance distributor. We’re your sales enablement partner.

No matter where you’re appointed, Agent Saathi helps you:

🔹 Look Professional: Get editable pitch decks, visuals, and client-ready scripts with your name, your brand.

🔹 Sell Across Lines: Whether you’re Life, Health, or General—our tools are designed to simplify every pitch.

🔹 Expand Your Scope: With access to MSME Insurance Kits, Commercial Product Guides, and more—grow beyond the basics.

🔹 Stay Updated: We break down new IRDAI guidelines, product launches, and market shifts—so you don’t have to.

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🚀 The Future of Insurance Selling Is Hybrid

More agents are becoming “independent creators” in insurance—selling across formats, lines, and models.

Agent Saathi empowers that future. No matter your classification. No matter your background.

🎉 Beta access is now live. Get a 7-day free trial and start selling smarter.

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