X hits on this document

PDF document

INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY - page 71 / 228

772 views

0 shares

5 downloads

0 comments

71 / 228

ANNUAL REPORT 2007-08

PART II REVIEW OF WORKING AND OPERATIONS

i) Regulation of Insurance and reinsurance companies

The Authority, in order to discharge the functions specified in Section 14 of the Insurance Regulatory and Development Authority (IRDA)Act, 1999, has specified the regulations given in the Annex-II. The regulatory framework broadly covers such aspects as the entry level requirements including those pertaining to minimum paid-up capital, ‘fit and proper’ management, ‘file and use’ requirements, filing of regular returns to the Authority. These are envisaged to help the Authority in carrying out its statutory functions to regulate, promote and ensure orderly growth of insurance and re- insurance business. In addition, Authority has also issued various directions, guidelines and circulars in order to carry out operations efficiently. Before issuing Regulations the clearance from the Advisory Council was sought and sent to the Government for notification in the Gazette and the Gazette notification is then sent to the Government for laying before the Parliament for approval.

ii) Intermediaries associated with the insurance business

Insurance Agents

The individual agency numbers showed a net increase of over 26 per cent in the year 2007-08. From 19.93 lakhs at the beginning of 2007-08, the number of individual agents increased to 25.20 lakhs by the end of the year. The private life insurers had recorded a phenomenal increase of 49 per cent as compared to a relatively lower 8 per cent increase registered by LIC. It is also for the first time after the opening up of the sector that the private insurers have more number of individual agents than LIC. While the number of agents at the end of the year in LIC’s fold stands at 11.93 lakhs, the number for all the private insurers put together is 13.26 lakhs.

Private

890152

772910

336314

1326748

LIC

1103047

234852

144155

1193744

Total

1993199

1007762

480469

2520492

TABLE 45

DETAILS OF INDIVIDUAL AGENTS OF LIFE INSURERS – 2007-08

Insurer

As on April 1, 2007

Additions Deletions

As on March 31, 2008

One major concern that emerges from the data is the high percentage of turnover of agents. In 2007-08, while the total number of agents appointed is 10.07 lakhs, the number of agents terminated is as high as 4.80 lakhs. The high turnover is a huge drain on the financials of the insurers who spend lot of money and time on prospecting, appointing and training of these agents. The policies procured by these agents are rendered orphan on their termination and thereafter result often into lapsation due to lack of servicing support.

TABLE 46 DETAILS OF CORPORATE AGENTS OF LIFE INSURERS

  • 2007-08

Private

1906

442

278

2070

LIC

409

55

119

345

Insurer

As on April 1, 2007

Additions Deletions

As on March 31, 2008

Total

2315

497

397

2415

55

55

Document info
Document views772
Page views784
Page last viewedSat Jan 21 11:01:48 UTC 2017
Pages228
Paragraphs23234
Words80831

Comments