Page 20 - Insurance Times March 2016 Sample

the psyche of the common mass. The extremely during the two months of summer holidays, the students

low penetration and density of insurance in In- are encouraged to take preliminary insurance exposure by
dia is the testimony of the above fact. What issue of probationary licence where they sell & serve to
went wrong? make some money.
Prof. Grover - The low penetration and density are the
If the experience is positive, they will stick as agents and
outcome of the industry's own doing. If we review perfor- help people in servicing of policies as an advisor or an
mance of the industry, it had touched the high of 5.27% employee. Unfortunately the largest insurer and the regu-

“in 2009 which has come down to Youngsters in the country are more conscious of the
packages. The industry has been paying well but without
3.3% in 2014. The industry must
introspect what are the reasons insisting on accountability. As a result, there has been
for decline. Somebody has to “
take ownership and accountabil- huge pressure on the sales force resulting in mismatch of

ity. expectations and outcome.

The Regulator and industry need

to change their outlook to bring lator refuse to entertain any such proposal. Therefore, the
about ready acceptance for the insurance as has hap- industry is left to see alienation of the majority. In the
pened for banking by highlighting its ability to offer protec- present set up, insurance can grow only on bancassurance.
tion against loss. Unfortunately, all the strategies are The banks have to provide for insurance as channel of their
geared for results in the short term. The long term vision activities like Retail, Credit etc. Government of India has
is totally missing. to push this for acceptance of approach by banks.

Dr.Chattoraj - What is your take on Insurance as Dr.Chattoraj - You have been associated with
a career proposition to youngsters aspiring to Amity University for many years. The university
build a career in this professional field? Why is credited with introducing a course in Insur-
has it not dawned on them as a fascinating ca- ance, Banking & Actuary at a time when not
reer option? many prospecting parents or aspiring students
Prof. Grover - Insurance has been a fascinating career considered it a good career option. You have
been the architect in running this course with
after the opening up of the sector. Youngsters in the coun- fair amount of success. What is your feeling
try are more conscious of the packages. The industry has today, when you travel down the memory lane?
been paying well but without insisting on accountability. As Prof Grover - We were first in the country to have
a result, there has been huge pressure on the sales force
resulting in mismatch of expectations and outcome. realized the need for a specialized course in insurance and
set up an institute on 1st September, 2000. It carried the
Attrition of Agents in the industry with each year witness- recollection of some important milestones relating to the
ing more and more terminations than appointments was date when the industry was first nationalized on 1.9.1956.
something to have been tackled. In the year 2014-15 about
6,55,716 agents were appointed and 7,76,309 were ter- Our programme initially was at the level of one-year di-
minated. Unfortunately there is no will to attack the prob- ploma followed by two year degree in Insurance and Ac-
lem. Pressure of short term goals without taking into ac- tuarial Science. These courses have been a runaway suc-
count the needs of the people has taken away the sheen cess. There will be no insurance company in private sector
from the career. which does not have alumni from Amity.

Besides, the regulator and the Insurance Companies have The CEO of Institute of Actuaries, London, specially flew
no policies to attract the young population which it should down to our campus twice to compliment us on our achieve-
seek to embrace. The financial awareness campaigns with ment in Actuarial Science. We are proud to have the dis-
insurance as the backbone are missing. There is no scheme tinction for having produced the first Fellow of the Insti-
in the short term to allow youngsters to test insurance as tute of Actuaries from our Institute and three other stu-
a career. A window should be provided by a scheme where

20 The Insurance Times, March 2016