To address the negative perception, the nomenclature of the agent be re-designated as Suraksha Agent or Suraksha Saathi so that he personifies his responsibilities in tune with the requirement of the industry. Insurance companies need to introduce psychometric testing to assess aptitude of the candidate before appointment
The financial services industry has been making waves on account of its imaginative and innovative approach. The Jan Dhan Yojana has resulted in opening of over 18 crore accounts with deposit of Rs 22,000 crore from a segment which was considered to be unreachable. Therefore, there is a natural expectation from the insurance industry to make a breakthrough.
The penetration level continues to stagnate around 3.2% for life insurance and 0.8% for general insurance. To reach the global level of 6%, an investment of Rs 60,000 crore will be required. The latest indicators do point to signs of growth with eight insurers seeking to raise the FDI stake to 49%.
For growth, the industry has been relying on agents, corporate agents, brokers, bancassurance and direct selling. The number of agents recruited during the year 2013-14 has been 7,24,820, while 6,59,077 have been terminated with a total force at around 20 lakh for several years. If the industry is to grow, it must take note of this serious lacuna and find solutions.
To address the negative perception, the nomenclature of the agent be re-designated as Suraksha Agent or Suraksha Saathi so that he personifies his responsibilities in tune with the requirement of the industry. Insurance companies need to introduce psychometric testing to assess aptitude of the candidate before appointment. The National Skill Development Council could be associated for training in skills requirement on identified gaps.
Bancassurance is widely popular the world over for spread of insurance. A media survey pointed out that 62% respondents trusted their banks and preferred to seek insurance through them. At the same time, 61% felt that they have been subjected to mis-selling.
