It is important to note that sales and marketing jobs are the highest paying jobs worldwide. In Kenyan Insurance industry, sales and marketing jobs happen to be the best paying jobs according to various research firms’ reports that have been published from time to time. During the initial years of the sales agent job, one would seem to struggle but once the agent has grasped what to do and what their job entails, they will normally thrive.
Insurance sales agent salaries are based on commissions from the sales they make and are defined by the insurance firm they represent. There would be other benefits payable to the agents that will vary from company to company. The insurance regulator has however defined commissions that ought to be paid for certain classes of business. Commissions vary per product with some products paying a commission of 10% and others paying commissions as high as 50%. Check our article of commissions for various insurance products.
The agents are classified in several categories e.g. Tied and independent agents. Check of website for article that has defined the types of agents that exist in an insurance firm.
The process of becoming an insurance agent is very simple and is as below.
- A person who intends to be an agent/ Financial advisor will contact the company of choice through various ways. This could be through referrals from friends and colleagues, it may be through insurance customers, through phone, through social media and websites or one may have to visit a company physical office
- Once in contact with the company or its representative, one will be recruited and trained by the company. They will sign a contract with the company that will include the code of conduct agreement.
- An Agent/ Financial advisor that has been recruited will be issued with a provisional licence by A.K.I. for one year during which they are expected to sit and pass the Certificate of Proficiency exams so as to qualify for registration by the Commissioner of Insurance. This certificate is offered by the college of insurance and the insurance company that has recruited the agent will normally facilitate registration. There are two sittings for this in a year. The insurance regulatory authority has introduced the Executive certificate of proficiency (ECOP) which takes a shorter period than COP. Normally it takes two weeks as this is a short course.
- After passing the C.O.P or ECOP, Financial advisor shall be registered with the Commissioner of Insurance office.
- The procedure for getting a license is very simple and is as highlighted below. It is purely an online procedure.
- One is expected to Log in to the Insurance regulatory authority Online portal http://online.ira.go.ke
- The applicant or its Principal Officer must have passed or been exempted from Certificate of Proficiency (COP) examination for Insurance Agents or ECOP.
- A Registration fee of Kshs.1,000 payable to the Insurance Regulatory Authority.
- One is supposed to declare his/her nationality hence Documents as proof of nationality are required. It is important to note that note that all agents must be East African citizens.
- A Confirmation by the Principal Officer of the Insurer for whom the applicant proposes to act as an agent certifying that the applicant has the knowledge and experience necessary to act as an agent. This is normally the principal officer of the company you have been recruited to sell their insurance products.
- Where applicable, a certified copy of the certificate of registration of business name reflecting the kind of business applied for. In case of a Corporate Agent, the following will also be required:
- A certified copy of the certificate of registration of business name reflecting the kind of business the applied for or a certificate of incorporation;
- A copy of the Articles of association or rules and regulation;
- Details of the shareholders or partners.