It feels that the model will help to lower attrition rate.
Reliance life Insurance has launched a new model of remuneration for distributors. According to the company, this model will boost distributor loyalty and make the agents stick to a company for a long time.
“We are launching a new remuneration model under career agent for new distributors and a fixed stipend plus club membership for our old distributors. These models are a win-win situation for both the company as well as distributors. For distributors, its fixed income and security while it will help us to develop long term relation with distributors,” said Malay Ghosh, President and Executive Director, Reliance Life Insurance.
Under the career agent model that will be launched from next financial year, potential agents will be trained for six months and during this period they will be paid a fixed stipend. After these agents clear the IRDA exam and acquire a license for themselves, they can operate like any other agent on commission basis. The company plans to hire 5,500 career agents across 200 branches by the end this financial year.
The company’s Japanese partner Nippon Life follows this model of fixed salary due to which it has been successful in developing a skilled and loyal sales force with some agents having been with them for 50 years too, highlights Ghosh.
To qualify for the fixed stipend plus club membership, the agents are required to have excellent professional skills and complete a given number of target policy sales during this financial year.
The existing agents also have to fulfill some other requirements after qualifying for club membership like:
a) Attend training programs regularly
b) Meeting clients regularly and servicing them efficiently