Similar to EUINs allotted to MF distributors, IRDAI is planning to issue a unique identity number for sales persons of corporate agents like banks, brokerage houses and large distribution firms involved in soliciting insurance policies.
In order to tackle mis-selling, IRDAI Chairman T.S. Vijayan said that there is a need to identify sales persons of corporate agents like banks. He was speaking at the 17th Annual Insurance Conference called ‘#FINCON2016’ organized by FICCI held in Mumbai recently.
Vijayan said, “Banks don’t mis-sell. It is the employees who mis-sell insurance policies to achieve internal targets. Therefore, we need a technology to track such erring employees to deter mis-selling in banks.”
Typically, corporate agents like banks and large brokerage houses get their relationship managers to acquire IRDAI’s exam certificate to solicit policies. However, often it is not the RMs but the sales persons working under RMs who are actually engaged in soliciting policies. Since these sales persons don’t have such certification or the required skill set to solicit insurance policies, they end up mis-selling policies to achieve targets.