Agents sell 7 out of 10 life insurance policies

Individual agents sold seven out of ten life insurance policies (new individual business policies) in FY 2016-17. IRDAI data shows that individual agents have sold 69% of the new individual life insurance policies in FY 2016-17 compared to 68.27% in 2015-16.

Experts attribute this to shift in focus of insurers from group business to retail business.  “Many companies have shifted their focus from group business to retail business which is driven by agents. Retail business is more profitable for the insurers,” said Subrat Mohanty of Springdale Insurance Broking.

In absolute terms, individual agents sold slightly less insurance policies compared to previous fiscal. Individual agents sold 1.81 crore policies in FY 2016-17 as against 1.87 crore policies in FY 2015-16.

While LIC procured 96% of its new business premium from agents, private insurers sold 30% of their policies through their agents.

Many private insurers sell their policies through their corporate agents, particularly banks as many of these insurance companies have banks as their parent company or majority shareholders. Also, private insurers enter into bancassurance deals with other private banks. In fact, 54% of their new business has come from banking channel.

Individual new business performance of life insurers for FY 2016-17 (in % of premium)

Source: IRDAI

(Figures in percent of Premium)