Bajaj Allianz Life Insurance Company plans to double its ‘active’ agency force to about 60,000 agents this fiscal, according to its MD and CEO Amit Agarwal. Currently about 28 per cent of its 110 lakh agents are ‘active’ – defined as those who are able to sell at least one policy every month. Bajaj Allianz Life earns about 45 per cent of its premium income through the agency channel.
The present commission structure (which allows for a substantial first year commission of around 30 per cent followed by 5 per cent in the second year and thereafter) contributed to a situation where the agent was more interested in new business rather than renewing the earlier business, therefore, to handle this situations Bajaj Allianz Life has built in a criteria that a portion of the income of the sales manager (who handles the agents) will be based on the renewals of insurance policies done during the year.
