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Termination Statistics of Insurance Agents for last 10 years

Published: Jun 20th, 2023 01:52 pmBy lazarus Dias

In the last 10 years, 30.86 Lakhs agents were terminated in LIC of India and 33.03 Lakhs agents were terminated from Pvt Life Insurance Industry. On the other hand, 31.34 Lakhs agents were recruited by LIC of India, and 33.39 Lakhs were recruited by the Pvt Life Insurance industry during the same period. The net addition by LIC of India was 48000 approx. and by Pvt Life insurance was approx. 35000 in the last 10 years

The total number of agents terminated since Privatization in 2001 works out to a mind-boggling 1.5 Crores. Almost 1% of India’s Population. Imagine the colossal loss of time, effort, and energy spent on these recruitments only for them to get terminated

Our Research shows that the communication done, commitments made and the expectations built at the time of Recruitment is the single most important cause for the termination of so many agents. The Recruitment process itself sown the seeds for the termination of such a large number of agents.

The agents are recruited for commission and not for Mission leading to such huge terminations.

The training provided by the companies only looks at product-related, knowledge-related, and skill related which is very inadequate to sell an intangible product like a life insurance policy. The client does not experience the product as it is being sold. The mindset and psychology-related training is missing. Psychology plays 80% of the role and knowledge & skills account for 20% of the contribution to sales of Intangible products. Attitudinal Training and change in process can arrest the termination saga and bring about much-needed growth in the insurance Industry.

The agents are only told about the opportunities and the rewards that can come with such a career but they are unaware of the levels of rejections and are never sensitized about the same so when the rubber hits the road there is complete disillusionment due to the gap between the expectations created and the reality in the market.

A very new innovative process called the Doctor Process for Recruitment is the answer to the problems that lie with agents’ termination. This helps recruitment for the mission and not for commission. This is not a clique but a real transformative process. This process is based on creating the correct Purpose for the Profession.

The 7 steps of the Doctor Process are as follows

1) Sell Trust/competence/capability

2) Sell the Appointment (Objective)

3) Sell the Problem

4) Sell the Solution

5) Sell the Career/Product

6) Collect References

7) Ongoing Service

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