In 2010-11, agents generated Rs 65,665 crore as new business premium.
IRDA released a ‘Handbook on Indian Insurance Statistics’ on its website yesterday. The insurance regulator says that the detailed database is supposed to enable a “better understanding” of the industry and also serve as a basis for formulating policies. The previous handbook was published in 2009.
The statistics in the handbook reveal that in 2010-11, individual agents were the highest contributors of (individual) new business premium worth Rs 65,665 crore among all other channels of insurance distribution. Compared to other channels like corporate agents (bank and others), brokers and direct sales, agents have emerged as the topmost distribution channel.In 2006-07, individual agents contributed Rs 54,605 crore as new business premium, in 2007-08 the contribution was Rs 66,515 crore, in 2008-09 the figure was Rs 55,327 crore and in 2009-10, Rs 65,665 crore was the total contribution.
“Most of the insurance companies prefer individual agents for distribution,” says the CEO of a top life insurance firm, preferring anonymity.
After shifting focus from ULIPs and the change in IRDA regulations, most life insurance companies are turning to agents to generate profits.
Source: IRDA