In the last few years, the life insurance industry has seen high attrition of individual agents largely due to low remuneration. At the same time, the contribution of bank channels in selling life insurance policies has gone up.
According to the annual report of the Insurance and Regulatory Development Authority of India (Irdai), corporate banks had a share of 47.37% of individual new business premium in 2014-15, while the share of private insurers in 2012-13 was 43.08%. On the other hand, individual agents who had share of 39.68% of individual new business premium in 2012-13 came down to 35.73% in 2014-15 for private insurance players.
