While the industry is preparing for next phase of reforms in insurance industry we need to ponder if we are ready with the infrastructure to support version 2 of reforms in insurance industry. Raising capital, technology up gradation, Product innovation, may not be a huge problem but the real cause of concern is human capital. Do we have adequate human capital in the insurance industry in India to achieve the vision of the growth of the industry as envisaged by IRDAI chief?
Indian Insurance market is drastically short of trained manpower. The Industry did not take a concerted effort to visualize the need of manpower while expanding the business. In Spite of the Insurance Industry having tremendous potential in employment opportunities and packages, it comes last in preference of students looking for opportunities in various sectors. When they don’t get good opportunity in other streams they move to insurance. In India there only a handful Institutions which are offering MBA diploma/degree and collectively they may be filling up around 500 vacancies which is quite nominal as compared with demand.
With the new initiatives of IRDAI in future around 19 new companies may be given licenses apart from the increase in number of Insurance Brokers, IMF, Agents due to relaxation in norms. Wherefrom the manpower will come. One way would be to lure existing people from other companies with higher pay packets.
But in this country where the unemployment rate is so high, there is dearth of quality jobs, Skilled professionals are sitting idle due to lack of opportunity, why don’t we create job in the industry by channelizing the resources and training people to be ready for employment in various roles in insurance companies and intermediaries. This will solve the unemployment problem and also help the industry to have an experienced pool of talents.
The Regulators and the Insurance Companies must come forward to chalk out the strategy to reform the insurance education system in India and suggest to the government to implement widespread reforms so that insurance is included as a compulsory subject from school and college level. Further tailor made courses must be made available to students so that they may join the industry in various roles after proper training.
