Agent attrition remains high, life insurers lose 60K in Q1

The life insurance industry continues to be hit by high agent attrition rates with their numbers coming down to 20.07 lakh in the June quarter from 20.67 lakh from the March quarter.
The industry comprising 24 players, which had started the year with total agency force of 20.67 lakh, declined by 60,000 agents to 20.07 lakh agents by end June, according to the data from the Life Insurance Council.
While 1,13,824 agents have joined various companies, 1,74,564 have exited the industry, it added.
The number of agents as on June 30, 2014, was 21.77 lakh, which came down to 20.07 lakh as on June 30, 2015.

The largest chunk of hit was taken by the state-owned Life Insurance Corporation (LIC) which has lost 79,000 agents, but could add only around 50,000 agents during the reporting period.
"The Corporation which has an agency force of 11,63,000 as of now, wants to increase it to 15 lakh," LIC chairman SK Roy had said earlier.

LIC could not be reached for comments on the latest numbers.
Private sector life insurers, having a total agency force of 9 lakh led by Bajaj Allianz Life, had lost 95,000 agents.
HDFC Standard Life has got 70,000 agents on its roll and it has already issued Id cards to all of them as per new regulation.

"We have already issued Id cards to all of our 70,000 new agents as per new regulations and now the things are stabilising," HDFC Standard Life managing director and chief executive Amitabh Chaudhry told PTI.
"Still, the problem is that it's very difficult to survive as sales are not happening and hence the ever- increasing attrition," he said.
"We get 18 per cent of our business through agents. Agents are must without which industry can't grow," he added.
Each of Reliance Life and Tata AIA Life has lost over 15,000 agents during the reporting period.
ICICI Prudential Life among the private sector life insurers has the largest agency force at 1,36,319 by adding 4,000 agents during the first quarter.