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Insurance Insurance industry finally sees agency force growing

Insurance industry finally sees agency force growing

LIC India added 30,175 agents while private insurers added 35,443 agents last year.
Shreeta Rege Feb 22, 2019

After seeing a consistent fall in individual agent numbers, there is positive news for the insurance industry. In the last one year ending January 2019, the life insurance agency force increased by 65,618.

Recent data published by Life Insurance Council (LIC), a trade body of the life insurance industry shows that the total life agency force increased from 20.72 lakh in January 2018 to 21.38 lakh in January 2019.

Industry behemoth LIC India added 30,175 agents last year while private players added 35,443 agents last year. Among private insurers, HDFC (25,925) added the highest number of agents followed by SBI (20,206) and ICICI Prudential (18,555). Meanwhile, Reliance Nippon saw a sharp fall in its agent numbers (55,963). It is believed that the company is trying to focusing on their internal sales team rather than agents.

Agents dominate life insurance sales for individual investors. In FY 17-18, they channelized 66% of the industry’s new business premium.  Both the state owned LIC (96% share) and private players (28% share), receive substantial new business through agents.

Insurance companies too are acknowledging the key role played by agents in the industry’s growth. Vighnesh Shahane CEO and MD, IDBI Federal Life Insurance shares that insurance companies are focussing on building a strong agency channel and the first step in that is increasing the number of agents on ground. This is reflected in the increased agent numbers, he added.

Growth in insurance agents

Insurer

Net No. of Agents as on 31-Jan-2019

Net No. of Agents as on 31-Jan-2018

Change

Change (%)

Private Total

9,77,994

9,42,551

35,443

4%

Life Insurance Corporation of India

11,60,465

11,30,290

30,175

3%

Grand Total

21,38,459

20,72,841

65,618

3%

Source: Life Insurance Council

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5 Comments
B Dash · 3 weeks ago
Only due to less brokerage in mf industry
Pulkit · 3 weeks ago
Exactly
Reply
DBDESAI · 3 weeks ago
Focus should never have been/never be on number of agents but quality of agents and products. Reduce commission to 2%, Allow surrender after 1 year with full refund, allow open architecture and see the difference.
Prashant · 3 weeks ago
Why does it pinch you if insurance agents earn commissions? There the sale is most difficult and the total commission is much lesser than in mutual funds although Mutual funds is easier to sell. You mean to say only you should earn the commissions and every one else should be beggars?
Reply
BABULAL ARJANBHAI Gajera · 3 weeks ago
Very nice
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