Plans

The Indian insurance sector is set to witness 10-20% surge in the upcoming three years. Low productivity of the individual agents, a strong policy lapse rate and absence of experienced personnel are few of the challenges that the private life insurers in the country will be facing in the upcoming years.

A survey done by global actuarial consulting firm Milliman, the low productivity of agents is a concern. The survey, said, “It is refreshing to note that most of the respondents expect an improved tied agency channel to dominate the distribution scene in the industry, whereas none of the respondents expect the current form of agency channel to survive for too long. If this is indeed achieved, there is hope for improvements in areas such as mis-selling, persistency levels, productivity levels and high cost ratios etc.”