The Insurance Regulatory and Development Authority (Irda) is planning a scheme to bring credibility and professionalism into the insurance intermediation system.
A committee appointed by the authority to put forward suggestions to improve the system submitted its recommendations recently.
In the present system, life insurance agents show a tendency of neglecting their old clients and instead are focusing on new clients and business.
This is because the new policies fetch them higher commission (in the first year) than the old ones. As a result, the lapse rate is growing, Irda chairman N Rangachary said.
