Life insurance agent headcount falls by over 2 lakh in 2012

Amid stiffer regulatory norms and tough business environment, life insurance firms trimmed agent workforce by over two lakh last year, and their pay-roll headcount also declined by 1,600 people.

According to the latest data available with the industry body Life Insurance Council, total number of agents fell to 21.63 lakh as on December 31, from 23.78 lakh in 2011.

During the same period, the number of direct employees on the payrolls of life insurers fell from 247,550 to 245,993.

However, the decline in the number of agents and direct employees was smaller in 2012, compared to 2011 when the total headcount had fallen by 3.3 lakh persons.

The agents have traditionally been a major distribution channel for life insurers, contributing the maximum to individual business premium collections.

However, their share has consistently fallen in the recent years, leading to most private sector insurers trimming down their agent workforce in the past couple of years, industry experts say.

According a survey by McKinsey, agents in India appear to spend time unproductively, with 66 per cent of that spent in non-selling activities and over 50 per cent of total agents failing to meet minimum standards.

Source - thehindubusinessline.com