Life Insurers Get Small-Town Ache

Doing business in smaller towns is posing a problem for the new life insurance companies as they are unable to address the crucial aspect of training agents.

Life players are also expected to thrash out the unfeasibility of going by the Insurance Regulatory and Development Authority (IRDA) definition of rural. These are some of the issues the life players will thrash out with the regulator at the annual meeting in Bangalore on Friday.

Chief executive officers and actuaries have been called to meet with IRDA chief N Rangachary and IRDA member H Sonig to discuss the health and status of the insurance industry.

Private players have so far concentrated their presence in the metros and large towns where accredited training institutions are available. As they intend to expand their presence to smaller cities, they are seeking a solution to the problem of training agents. As it is not practical to set up an accredited training centre in small towns where the number of agents recruited is small, said a CEO of a new life insurance company.