IRDAI in talks with NSDC for skill devp programme for agents

Concerned over the high level of attrition of agents in the life insurance industry, sectoral regulator Insurance Regulatory and Development Authority of India (IRDAI) is in talks with National Skill Development Corporation (NSDC) to undertake skill development programme for the agents.
As on July 31, there were only 20.14 lakh agents working for 24 life insurers in the country, when compared to 20.67 lakh agents who were working for the industry as on March 31.
Even as 1.79 lakh agents have joined the industry during the first four months of the current fiscal, 2.32 lakh agents have quit during the period, which shows a net exit of 53,000 agents during the four months.

On an average, 10,000 agents had quit the industry per month during 2014-15. However, the per month attrition of agents has doubled to 20,000 in the first four months of the current fiscal, a Life Insurance Council data revealed.
"We have discussed with the BFSI sector of NSDC and drawn national occupational standards (NOS) of the agents working for the industry which has been approved by NSDS and that has to be taken up by insurers so as to skill their agents," IRDAI member, consumer affairs and distribution, D D Singh told reporters on the sidelines of an event held by LIMRA.

NOS are statements of the standards of performance individuals must achieve when carrying out functions in the workplace.

"NSDC develops skill of various people like carpenter, electricians, so even skills of insurance agents will be developed so that they can be more productive. Now they have gone to insurers to chalk out the strategy," he said.
"It is not that all the 20 lakh agents will be trained in one go. Insurers would have board-approved policy on which segments they want agents to be trained. Those things will be worked out, as NSDC will also be providing facility for training," he said.

Even though the new insurance Act has given the go-ahead for increase in FDI cap in the insurance sector to 49 per cent, the pace of inflow of foreign capital was not picking up. So far, AXA and Tokio Marine are the only two global insurers that have formally said that they will be increasing their FDI in the domestic partner to 49 per cent.
Citing the reason behind this slow pace of foreign capital inflow to the sector, he said that "maybe they are waiting for certain more clarifications and the government has already clarified on one or two such issues.