Life insurers’ agent count shrinks by 12,000

Over 1.70 lakh new agents joined the life insurance industry in the last quarter of FY 2022 as against the departure of 1.30 lakh agents, shows latest IRDAI data.

Despite the high joining rate in the March quarter, the industry witnessed a loss of over 12,000 agents in FY 2022. However, the large addition in agents in the last quarter saved the industry from very high attrition. Till December 2021, the industry had lost a net of 50,000 agents.

Overall in FY2022, private players added a net of 15,000 agents to their agent count while LIC saw its agent count reducing by 27,000. At the end of the financial year, LIC reported an agent count of 13 lakh. On the other hand, private players together reported an agent count of 11 lakh.

Experts believe that the decline in agents was due to low persistency ratio and recruitment of non-serious individuals. “A few agents find it difficult to retain their clients after the initial years. As a result, the commission income reduces due to low persistency ratio,” said the senior official of a large insurer. He further says that some private insurance companies often recruit unskilled people to achieve their internal targets. Such agents, after acquiring a few clients from their family and friends circle, usually leave the profession, said an industry executive.

Here's the net addition in agent count of each life insurer: