Traditionally Insurance has been sold by agents and almost 90% business was done by Individual agents. Agents were preferred because they were working in their natural market hence there was less chances of mis-selling and fraud.
However, agency was not able to increase Insurance Penetration which was necessary for any thriving economy. That is why alternative channels were opened . Brokers represent customers and segmented the market into Retail and Bulk. Another alternate channel is Corporate Agents. Even Banks also work as Corporate Agents under a model called Bancassurance.
Unlike Brokers, Corporate Agents represent Insurance Company. A Corporate Agent can represent:
Corporate Agents can only Represent below mentioned Profiles
- 3 Life Insurance Company
- 3 Health Insurance Company
- 3 General Insurance Company
Corporate Agents need to work under strict guidelines through a trained and qualified Principal Officer. They also need to follow all regulations like maintaining grievance data, having trained sales force, IRDA has a complete guidelines from Corporate Agents. So here's a question raising how many Activities can Corporate Agent Perform?
Corporate Agents can Only Perform on these Activities:
- Soliciting Business
- Quality check
- Business logging
- Customer feedback
- Grievance Management
Each Insurer work out a compensation model with hope of increasing the penetration. However , there are some challenges which is faced by public :
Challenges faced by Insurer during Compensation
- Mis-selling due to aggressive targets and pitching
- To achieve targets, sales agents offer various incentives which is not allowed by IRDA because Insurance is subject matter of solicitation.
- Large dependence on lead generation through tele-calling
- Low emphasis on training.
For better eco system, lot of financial literacy programmes are required so that Public do not fall in trap. Corporate Agents can play critical role in increasing the penetration but need qualified and trained sales force who do need based selling.
That's about the Corporate Agency if you get cheated by any Agent regarding anything so feel free to contact us details given below.
To reach us at InsuranceSamadhan.com –
Call us at – 844 844 0626
Mail us at – firstname.lastname@example.org
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