As life insurance firms go on an expansion spree, productivity of agents is likely to become a key issue.
Increase in premiums per agent declines despite training
KOLKATA: As life insurance firms go on an expansion spree, productivity of agents is likely to become a key issue. While insurers across the board talk of the best training levels, industry-specific studies indicate that productivity per agent perhaps needs a big lift.
“We have observed that most companies focus more on expanding networks and less on improving agent productivity. We believe this trend will likely continue till the market stabilises,” points out a study by Kotak Institutional Equities Research.
According to the study, commissions earned per agent per month appear to be low, which compels agents to work only part time for insurance companies, with a tendency to sell non-insurance products for other companies alongside.
Improving productivity should also reflect in higher commissions for agents, the study concluded.
Insurers claim their agents are well trained and adequately motivated. Rajit Mehta, executive director, HR, training, Max New York Life, said, “We recruit and develop people who are committed to devoting the required time to this profession. We conduct both internal and external surveys to ensure complete compliance with the sales process”.
Arun Patil, head, training and MDP, Kotak Insurance said, “Training holds a lot of significance, especially as the industry faces a lot of rejections. Training that is high on motivation and inculcates meeting habits with clients is of significance. We induct a training programme KASH (know, attitude, skills and habits), which incorporates continuous inputs for training, retention of employees and sales force, and improving productivity”.
ICICI Prudential Life, with one of the largest number of agents in the private sector, makes its advisors go through a rigorous four-day induction process along with specific product training sessions that help them gain clarity on the products.
“Some of our advisors also train under the Life Underwriting Certification programmes which not only helps them improve their productivity but also builds their credibility through obtaining a globally renowned certification”, Bhargav Dasgupta, executive director, ICICI Prudential said.
According to S Bharat, senior VP, agency, Tata AIG Life Insurance, the company ensures that all information is shared with the customer and his consent is taken by a mutual agreement.
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