Insurance agents will now have to become eligible to sell ULIPs. IRDAI has asked insurance agents to get certification and training to sell market-linked products.
IRDAI said that insurance agents will have to attend an additional training session apart from the other mandatory trainings to become eligible to sell ULIPs. This training would cover topics like development of capital markets, basic knowledge and concept of ULIPs, suitable market segments and so on.
Further, Agents selling ULIPs will also need to ensure that their clients understand risks related to ULIPs. Agents will be required to disclose development in other market-linked products like mutual funds.
In fact, insurance agents will now have to ensure that they sell policies based on product suitability parameters such as risk appetite and financial goals of their clients. Such a suitability will have to be ascertained through a series of questions such as age, income, family status, life stage, financial and family goals, investment objectives, insurance portfolio already held and so on.
