 "Life insurance AUMs touch Rs 25 lakh cr in FY16")
The life insurance industry has faced the challenge of agents leaving the profession. Data from the Life Insurance Council, the industry body for the life insurance companies, shows that companies have lost 51,278 agents in the financial year 2015-16.
Insurance Regulatory and Development Authority of India (IRDAI) in an exposure draft on remuneration for insurance agents and intermediaries has proposed higher commission for agents in the first year as also subsequent years to incentivise these distributors. Further, it has also said that insurance companies can give rewards over and above commissions.
Data shows that the public sector insurer Life Insurance Corporation of India (LIC) saw 1,02,044 agents exit in FY16. Private life insurers, on the other hand, made an addition of 50,766 agents in the last financial year.
| Life insurance agents: On a downward trail | ||||
| Insurer | Number of agents as on April 1, 2015 | Additions up to March 2016 | Deletions up to March 2016 | Net number of agents as on March 31, 2016 |
| Private life insurers | 9,04,231 | 3,45,715 | 2,94,949 | 9,54,997 |
| LIC | 11,63,604 | 3,19,428 | 4,21,472 | 10,61,560 |
| Grand total | 20,67,835 | 6,65,143 | 7,16,421 | 20,16,557 |
| Source: Life Insurance Council | ||||
