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Insurance Response of POSPs not as expected: IRDAI

Response of POSPs not as expected: IRDAI

IRDAI had allowed point-of-sale persons (POSPs) to sell basic insurance policies in FY 2015-16.
Rosevina Gonsalves Mar 16, 2017

The insurance regulator believes the performance of point-of-sale persons (PSOPs) has not delivered the desired results even though this distribution channel was introduced to facilitate growth in the insurance business and increase insurance penetration.

Commenting on the current performance of POS persons, TS Vijayan, IRDAI Chairman, believes, “The performance of POS persons is not very impressive. We had expected a greater impact and boost in insurance sales post the introduction of this channel.”

He further added, “New guidelines have now been issued by IRDAI which are directed to increase the number of POS persons and ease the appointment procedure. With the launch of various new insurance products in the market, we believe POS persons will generate more business in the future.”

Initially, POS persons had to take National Institute of Electronics and Information Technology (NIELIT) exam and undergo training sponsored by the insurer or intermediary.

However, as per the recent guidelines, the insurance regulator decided to do away with the NIELIT exam. Now, an insurer proposing to engage a POSP has to conduct an in-house training of 15 hours for the candidate and subsequently conduct an exam.

 

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