Agents

  • Agents or as nomenclatured by the private players – Insurance Advisors/Planners.
  • Indian insurance companies have the tradition to market their services or products through these agents. Moreover agents have also proved to be highly successful means of distribution of insurance products.
  • Agent becomes the strongest link between the insurance company or the life insurer and the
  • The agent’s work is to explain the concepts, terms and conditions, benefits, and privileges of the insurance contract. He is the one who analyzes the financial requirements and the risks faced by the customer and then markets the insurance plans which best suit the needs and means of the customer.
  • The paramount importance of this channel is recognized by almost of the insurance companies and life insurance companies and so they emphasize on building a good field force.
  • There is spectacular growth rate in the number of the agents.
  • These agents have to obtain a license from IRDA before they carry out any work related to this field and have to follow a prescribed code of conduct. A text of the guidelines dealing with licensing of insurance agents is given in Annexure 39-A.
  • The number of such agents LIC has are 6,51,000.
  • In the non-life insurance companies also, the marketing is majorly carried out by such agents or development officers. There are training institutes set up all over India for the purpose of training agents.
  • Due to low ticket size in the business of general insurance, the number of agents here has not increased to those astonishing levels. Liberalizing the rules here, might attract more agents to this business also.
  • A corporate agent could be thus defined as a person meaning a firm or company formed under the Companies Act, 1956 or a banking company or a bank/RBB or a co-operative society registered under the Co-operative societies Act, 1912 or a Panchayat or a NGO/MFI covered under the CO-op societies act or a NBFC registered with RBI or any other Institute. They enable grater reach to the institutions.
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