Page 48 - Insurance Times October 2023

Life Insurance Products Distribution - 2021-22 Agents should take advantage of increase of awareness
Individual agents 55.01% Agents will be always relevant as insurance is still a
Banka /Corporate 31.94% complex and push product
Agents still have 96% market share to eye.
Online Direct sale 1.36%
Web aggregators .19% Dr Rakesh shared an interesting statistics from Insurance
Information Institute USA. He highlighted the share of
General Insurance Products Distribution Agents Vis a vis other channels.
excluding health - 2021-22
Individual agents 22% In Life Insurance
In 2013 share of agency channel was 45%
Banks 8.43%4
In 2013 share of agency channel was 52%
Brokers 35.11%
In Property and Casualty
Online sale 1.16%
In 2017 share of agency channel was 50.6%
Other channels 5.19%
In 2021 share of agency channel was 53.8%
Health Insurance Products Distribution - 2021-22
He asserted that even in technologically advanced market
Individual agents 31.32%
like USA, Agency Channel plays an important role and is
Banks 10.43% responsible for 50% of the business.
Brokers 25.86% He also had some advice for the Agency force

Direct sale 2.09% in order to grow:
Web aggregators .39% 1. Focus on Continuous Professional Development
He emphasized on the fact that the online sales is a meagre 2. Attend seminars, webinars, training sessions, and read
1.56% in life, 1.16% in general insurance and 2.50 % in books and literature
health insurance. It will require tremendous amount of 3. Keep yourselves updated
efforts to raise the penetration through online sales.
4. Provide value added service like Risk Management,
2. Other major challenge is that IRDA is of the view that Claims Assistance, Post Claims Suggestions
if distributors expense/commission is reduced, people 5. Educate customers with regular inputs
will move to online platform to buy insurance. IRDAI 6. Provide full range of financial consultancy
needs to understand the pulse and mindset of
consumers. Buying Insurance is still on the last agenda 7. Use digital marketing
of most of people. Serious efforts are needed for He also suggested that Research and development in India
mindset growth and consumer awareness. should be given due importance by Regulators, Councils, and
3. Large number of people are not well versed in Insurers. Currently there is sizeable gap in research and
technology. development activities in India and the industry should invest
significant amount of resources to understand customer
4. Huge trust deficit gap needs to be filled up
behaviour, preferences and to launch customized products/
Impact on Insurance Agents on launch of Bima services based on demand.
Sugam He also advised to form a National Professional Body for
No immediate impact on agents Insurance Agents. Currently India does not have a unified
But great threat from Bancassurance channel body for Insurance Agents unlike its counterpart like
Agent's community needs to gear up and develop Insurance Brokers and Insurance Surveyors. This body should
themselves to fight competition look after recruiting, training, continuous professional
development and help in growth of the Agency Channel, the
Complacency will not work
most vital channel of distribution.
Consumer Awareness will increase by efforts of IRDA
like Bima Vahak, Bima Vistar, and Bima Sugam Just like He concluded with the remarks that the Agents should
Jan Dhan Yojana helped in massive increase in always be ready for disruption and be ready to disrupt! Only
awareness. then you can succeed.

The Insurance Times October 2023 45