IRDAI commission curbs could push 15-40% of LIC agents out over 2-4 years, deter new recruits, warn industry veterans
Former LIC Managing Director Vipin Anand estimates that 15% of LIC agents could exit over two years, while LIAFI Chairman N Gajapathi Rao warns that attrition could reach 40% over three to four years. Both flag risks to agent livelihoods, recruitment and insurance distribution as IRDAI proposes tighter commission caps and expense limits.
అక్టోబర్ 19 నుంచి LIC 3 కొత్త పాలసీలు.. పెన్షన్, హెల్త్ ఇన్సూరెన్స్పై బిగ్ అప్డేట్!
The Insurance Regulatory and Development Authority of India's ( IRDAI ) proposed overhaul of insurance commissions and expenses has raised concerns over the long-term viability of the agency distribution model, with industry veterans warning that tighter payouts could discourage new entrants, accelerate agent attrition and complicate efforts to expand insurance penetration. Former LIC Managing Director Vipin Anand and N Gajapathi Rao, Chairman – Organisation, IRDAI & Political Affairs, LIAFI, said the impact of the proposed framework would extend beyond headline commission rates to the incentives, operating costs and earning potential that sustain insurance sales. While Anand estimates that around 15% of LIC agents could leave over two years, Rao warns that attrition could reach 40% over three to four years if the proposals are implemented. Advt
"People who do not have their livelihood dependent on it, especially people who are doing this business part-time or even new agents, are likely to move away because it may not be attractive enough anymore," Anand told ETBFSI. Anand said the potential exits would largely involve part-time agents and those who earn relatively little from insurance distribution, rather than agents who rely on it as their primary livelihood.
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