J Hari Narayan, IRDA Chairman, has said that he wants to encourage the ‘super agency’ model in the insurance industry. He wants insurers to adopt this model of distribution to control the exit of agents from the industry.
The super agency model is a structure under which a big IFA recruits agents and sells insurance through sub-brokers. Under this model the sub-brokers have to pass IRDA exam and join a seasoned IFA who menÂtors and guides them in all important aspects of the business. The sub-broker can also utilize the back office staff of the IFA and even the infrastructure.
Relieved of the burden of servicing and operational issues, the sub broker can concentrate single mindedly on building his business. This is expected to create a stronger and better trained sub-brokers who will stick around.
“The IRDA chairman disÂcussed the model in the reÂcently held ASSOCHAM meet in Hyderabad. We look forward to adopting this channel of distribution soon, for increasing penetration in rural as well as urban areas,” says Dr. Nandagopal, MD and CEO, IndiaFirst Life Insurance.
LIC has already started promoting the super agency model. According to the Life Insurance Council, around 3 lakh agents have quit the industry over the past three months. IRDA is encouragÂing innovative methods to prevent agents from quitÂting. According to IRDA this model will increase penetration through small agents.
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PALLABIKA GANGULY/ CAFEMUTUAL
