Insurers suggests agents to move to advisory model

Insurers want their agents whose activity is driven predominantly by selling maximum number of policies, to expand their scope of work to advice customers.

In an Insurance Summit conducted by CII, insurers said that there is a need to move towards advisory model.

“Role of agents needs to change to an advisor. The life insurance policies are equated with other financial products but these needs to go beyond the tier I cities,” said Bajaj Allianz Life Insurance CEO Kamesh Goyal.

The chief executive of the life insurance companies, however, said that the intermediation cost should come down but not immediately as moving fast towards the advisory model would dampen the industry growth.