Monday, March 15, 2010

Let us work for growth of Insurance Companies

Recent news item has criticized life Insurance firms having enrolled housewives, students, chemists, chartered accountants, tax planners, and even grocery stores to generate leads that may turn in to deals/ issue of policies.

Even websites can turn lead generators in a practice that industry officials say forms a part of new business model. A website shares data on its visitors with a private insurer which in turn puts his sales team on the job. The insurance company pays a one time fee only on conversion to business depending on the premium slab. We in IFI agree that the deal or case or proposal should be always closed by a qualified agent or an intermediary so that there is no misselling.

According to the Insurance Regulatory and Development Authority (IRDA), commission can be paid to only to licensed agents. We fully support IRDA viewpoint.

Insurance companies are looking for new ways to reach customers and it should be done/ encouraged as we have to reach the masses all over the country. Penetration has to increase. Let us work for it.