Insurance agents crashing out

The life insurance sector has faced a challenge of agents leaving the profession. Data from the Life Insurance Council show companies lost 51,278 agents in 2015-16. The Insurance Regulatory and Development Authority of India (Irdai), in an exposure draft on remuneration for insurance agents and intermediaries, has proposed higher commission for agents in the first year as also subsequent years to incentivise these distributors. Further, it has also said that insurance companies can give rewards over and above commissions. Data show that the public sector Life Insurance Corporation of India (LIC) saw 102,044 agents exit in 2015-16. Private life insurers, on the other hand, made an addition of 50,766 agents in 2015-16