LIC plans better incentives to retain agents

Life Insurance Corporation of India (LIC) is planning to better incentivise its agents to retain them. The state-run insurer plans to recruit close to 1 lakh agents this year.

Life Insurance Corporation of India (LIC) is planning to better incentivise its agents to retain them. The state-run insurer plans to recruit close to 1 lakh agents this year.

Senior executives at LIC confirmed to FE that the insurer had lost close to 1.5 lakh individual agents, partly because of lesser number of new products and also due to stuff business targets.




“While we are yet to finalise the new incentive structure we are confident we can add a net one lakh agents this year. We are also planning to design new training sessions for our development officers (DOs). The final decision will be taken in the second week of May, when we will organise our annual conference on agents,” said a senior officer from LIC on condition of anonymity.

As of March 31, 2016, LIC had a total of 10.61 lakh individual agents, compared with 11.63 lakh in 2014-15, according to data from the Life Insurance Council. Currently, LIC has 22,000 development officers managing teams of individual agents and their development.

Senior company officials also said many agents had left because of stiff business targets. An LIC agent is required to sell minimum 12 policies per year, and if he fails to achieve this, he has an option to complete the target in another one year. But in the third year, if he fails to get 36 policies, his registration gets cancelled.

“In the last few months, we have launched four-five schemes and the response has been very positive. With our many popular products back in ‘new avatar’, we are confident that we can retain large number of agents in this financial year,” an official said.(News Courtesy: NDTV)

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