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
