Insurance behemoth Life Insurance Corporation of India (LIC), which has regained its lost market share this year, has adopted a new channel to boost distribution.
It has been recruiting direct sales executives.
“Apart from the tied-agency channel, we have started few months ago a direct sales channel,” D K Mehrotra (pictured), managing director of Life Insurance Corporation, said in response to a question on counters asking for “LIC - Direct recruitment of agents” put up at various locations in Mumbai.
Mehrotra said these executives would be targeting people who are already investing in the financial market.
“It is a new channel that could benefit people who don’t have much time to report to offices. As you know, getting leads (references of people who can buy insurance) is difficult, the direct sales executive would help in lead management.”
“They would act as some sort of a business facilitator,” Mehrotra said.
The insurer had lost market share to competition in the last few years. As of October 2008, it held 55% of the life insurance pie. A year later, it has more than 65%.
The firm hasn’t just been growing its prime distribution mode of tied-agents channel, but also exploring other means to grow its reach and revenues. It had around 14 lakh agents in September and is expected to have added to the tally in the months since. This, when some of its rivals have been trimming their agency base to ensure efficiency and reduce operating expenses.
Presently, the direct sales executives have been recruited at 10-odd locations. Asked about the number of such executives that LIC plans to hire, Mehrotra said, “We are experimenting with it. But by next year, each division should have direct sales executives. We have about 109 divisions.”
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