Not all life insurance agents sell non-life and health policies. Only little more than 2 out of 10 life insurance agents sell health insurance policies, shows IRDAI data.
Currently, there are over 22 lakh life insurance agents. However, IRDAI data reveals that of these agents, only 5.20 lakh agents are selling health insurance policies. Typically, agents having general insurance and health insurance distribution business along with life insurance are considered as active.
IRDAI norms allow individual agents to sell policies of three insurers – one life insurance company, one non-life insurer and one standalone health insurer.
Experts attribute this to recruitment of non-serious agents and lower incentives in non-life products compared to life insurance policies.
Vighnesh Shahane CEO and MD, IDBI Federal Life Insurance believes that many insurance agents have become inactive after IRDAI rationalized commission.
Seconding his views, Mayank Bathwal, CEO, Aditya Birla Health Insurance said that many life insurance agents are either inactive or work on part-time basis. He further pointed out that insurance is a difficult product to sell for most people as non-life and health policies do not offer any investment returns, he said.
Currently, banks and insurance brokers account for the distribution of 60% of non-life policies. The reason behind this trend is commercial policies. These intermediaries do not like to sell life insurance to retail customers as they feel the effort and expenses incurred in acquiring and servicing customers is too high. Instead, they focus on selling large ticket size non-life products like group health insurance, motor insurance, liability insurance etc. to corporates.
