Life insurers lose agents

Life insurance industry lost more than 30,000 agents this financial year up to November 30, 2015. According to data published by the Life Insurance Council, the 24 life insurance companies put together saw 30,828 agents exiting the industry. Now, the net number of agents in this segment is roughly 2 million. This is much lower than the attrition level reported in the previous financial year

The regulator and the industry have taken steps to ensure that the agency workforce in the life insurance sector sees an increase. From reducing pass percentage for qualifying as an agent to letting insurance companies deciding their own rates of persistency for agency, the regulator is ensuring that more agents join the industry

In the same period last fiscal, almost 43,201 agents had quit the industry. Even in its annual report for 2013-14, Insurance Regulatory and Development Authority of India (IRDAI) had said that high attrition may adversely affect life insurers' business, policy persistency and public perception of the agency channel as a stable career

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel