Life of Insurance Agent will nevere be the same again!

It is quite clear that the way IRDA is daily coming up with new rules and regulations , it is going to have a profound impact on the life of insurance agent in the near future.

First, there was issue regarding high commission paid to insurance agents. Then there was debate related to regulation of ULIP, started by SEBI who wanted some stake in the way ULIPs are sold in the market as the money is invested in the stock market. The outcome is that there will be lesser entry load on ULIPs. So, there will be less commission for agent/advisor.

Before these things were over, now there is a new rule being thought about by IRDA which proposes to cancel the license of Insurance Agents whose average annual persist-ency ratio is less than 50%. This is to reduce mis-selling. It will be interesting, if implemented, as there will be severe reduction in number of licensed insurance agents in the country.

Obviously all these issues are helping the cause of investors.

But, IRDA should also take some steps which work for the benefit of insurance advisors. Insurance Agents/Advisors are the backbone of insurance industry.

I hope IRDA will bring some changes in the commission structure which will take care of the earning power of the insurance agent.

With more and more companies joining the insurance industry, there is going to be tougher competetion. Agent need to be aware about the way changes are going to effect them and thus get ready for challenges.


Vishal Kashyap,


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