Why Insurance Commission Careers Had a Bad Reputation –  And Why That’s Changing in India

Let’s start honestly.

If someone earlier said:

“I am an insurance agent.”

What reaction did they get?

• “Targets ka pressure hoga.”
• “Policy bech ke gayab toh nahi ho jaoge?”
• “Income stable hai kya?”

For many years, an insurance commission career in India carried baggage.

But why?

And more importantly -what has changed?

If you are exploring becoming a POSP or insurance advisor, this is something you must understand clearly – without hype, without fear.

Why Insurance Commission Careers Got a Bad Reputation

1️. Income Uncertainty -The Biggest Fear

In traditional jobs, you get:

• Fixed salary
• Monthly credit
• Predictable income

In insurance commission roles, income depends on:

• Policies sold
• Premium size
• Client retention
• Renewals

For someone starting out, the first 6–12 months can feel unpredictable.

That scared families.

Parents would ask:

“Mahine ka pakka kitna milega?”

If the answer was:

“Depends…”

Conversation uncomfortable ho jaata tha.

But here’s the truth:

Every business starts with uncertainty.
Insurance advisory is not a salary job.
It is closer to building a client portfolio.

And portfolios take time.

2️. Mis-Selling Damaged Trust

Let’s acknowledge reality.

In the past, parts of the industry saw:

• Over-promising returns
• Not explaining exclusions clearly
• Selling unsuitable policies
• Focusing only on commission

When customers felt misled, trust dropped.

And when trust drops in insurance -reputation suffers fast.

So the phrase “insurance agent” unfairly became linked with:

Pushy
Aggressive
Target-driven

Even though many honest advisors were doing responsible work.

Reputation damage spreads faster than good stories.

3️. Lack of Structured Training Earlier

Earlier models often focused on:

“Sell more.”

Not:

“Advise better.”

There was limited:

• Product education
• Financial planning orientation
• Ethical training
• Long-term relationship building

Without proper capability building, advisors struggled.

And when advisors struggle, customers lose confidence.

That affected the perception of an insurance commission career in India.

4️. Society’s Salary Bias

Indian households traditionally preferred:

Government job
Corporate job
Fixed income role

Commission roles were seen as:

• Backup option
• Temporary work
• “Until something better comes”

But that thinking is slowly evolving.

Because today’s economy is different.

What Has Changed in the Insurance Industry?

Now let’s talk about the transformation.

This is important if you are considering becoming a POSP.

1️. Mandatory Certification & Licensing

Today, becoming an insurance advisor or POSP requires:

• Formal training
• Certification examination
• Regulatory compliance
• Continuous updates

You cannot just “start selling.”

You must qualify.

This alone has increased professionalism significantly.

Insurance advisory is now structured -not informal.

2️. Digital Transparency

Earlier, customers relied fully on the advisor.

Now:

• Policies are digitally issued
• SMS & email confirmations go directly to customers
• Premium receipts are traceable
• Commission systems are digitally tracked
• Customer portals allow independent verification

This transparency protects:

• Customers
• Advisors
• The company

Trust increases when systems are visible.

And trust is the foundation of a strong insurance commission career in India.

3️. The Renewal Income Advantage

This is something many people still don’t understand.

Insurance is not just first-year commission.

Many products offer renewal commissions when:

• Clients continue their policies
• Premiums are paid consistently

That means:

If you build a portfolio of loyal clients,
your income can compound over time.

Example (illustrative, not guaranteed):

• If an advisor builds 100 active policies
• With consistent renewals
• Renewal income can create a steady base over years

This is very different from one-time sales models.

Insurance rewards relationship building.

Not just transactions.

4️. Shift from Selling to Advising

Modern insurance ecosystems now focus on:

• Needs analysis
• Risk understanding
• Financial protection planning
• Long-term client engagement

The mindset is shifting from:

“Policy becho.”

To:

“Family ko financially secure karo.”

That shift changes everything.

When you become a protection advisor – respect follows.

5️. Growing Insurance Awareness in India

India is still underinsured compared to many developed economies.

Insurance penetration (premium as % of GDP) in India has historically ranged around 3–4%, lower than many global markets.

What does that mean?

Huge awareness gap.
Huge protection gap.
Huge advisory opportunity.

But opportunity must be handled responsibly.

This is not about exploiting a gap.

It is about educating families.

What an Insurance Commission Career Really Demands

Let’s remove myths.

An insurance commission career in India is not:

❌ Quick money
❌ Easy money
❌ Instant success

It requires:

✔ Consistent prospecting
✔ Relationship nurturing
✔ Follow-up discipline
✔ Ethical clarity
✔ Financial literacy

Many industry estimates suggest that a significant percentage of new advisors leave within the first year -often due to unrealistic income expectations.

Why?

Because they were sold a dream -not prepared for the discipline.

If you enter this field thinking:

“2–3 mahine mein lakhpati ban jaunga.”

You may feel disappointed.

If you enter thinking:

“5–7 saal mein strong client base banaunga.”

You are thinking long term.

Insurance is a marathon.

Not a sprint.

Income Potential – Realistic View

Let’s talk numbers responsibly.

In India:

• Entry-level advisors may take time to build income stability.
• Mid-level advisors with active portfolios can earn between ₹3–10 lakh annually.
• High-performing, well-networked advisors with strong retention can cross ₹15–25 lakh annually.

These are probability-based ranges.
Not guarantees.

Income depends on:

• Geography
• Network
• Persistency
• Skill
• Time invested

But the key difference from salary?

There is no fixed ceiling.

Why Respect is Increasing

Today, a professional insurance advisor is seen as:

• A financial guide
• A protection planner
• A risk consultant
• A long-term relationship partner

Especially in Tier II and Tier III cities, trusted advisors often become:

• Family advisors
• Community influencers
• Referral magnets

Insurance, when done ethically, builds deep trust.

And trust builds recurring income.

The Real Question for You

If you are considering a POSP or insurance advisor career, ask yourself:

• Am I comfortable talking to people regularly?
• Can I handle rejection calmly?
• Am I willing to build relationships patiently?
• Do I value trust over shortcuts?

If the answer is yes – an insurance commission career in India can be meaningful.

Not just financially.
But socially.

A Simple Reframe

Earlier belief:
Insurance agent = salesman.

New reality:
Insurance advisor = financial protector.

That is not marketing language.

That is responsibility language.

And responsibility earns respect.

Final Thought

The bad reputation of insurance commission careers was not about commission itself.

It was about:

• Misaligned incentives
• Poor training
• Short-term thinking

Today, systems are more structured.
Digital tools improve transparency.
Certification improves credibility.
And ethical frameworks are stronger.

If you approach this career with:

• Integrity
• Patience
• Skill
• Service mindset

You don’t just earn commission.

You build legacy.

FAQs

Q1️. Is an insurance commission career in India stable?

It can become stable over time through renewal income and strong client relationships. However, income depends on performance and consistency.

Q2️. Why did insurance agents have a bad reputation earlier?

Past issues like mis-selling, lack of transparency, and poor training affected trust in the profession.

Q3️. How much can a POSP earn in India?

Earnings vary widely based on performance, geography, and portfolio size. Income is commission-based and not fixed.

Q4️. Is becoming a POSP difficult?

It requires certification, training, and consistent effort. Success depends on skill development and ethical client engagement.

Q5️. Does insurance offer long-term income growth?

Yes, through renewal commissions and client retention, advisors can build compounding income over time, though results are not guaranteed.