Challenges Faced by LIC of India in Appointing and Retaining Individual Agents
Abstract
Traditionally, the individual agency channel has been the highest business contributor for the Life Insurance Corporation of India (LIC). During the FY 2020-21, the agency channel, with a strength of 13.53 lakh agents, has contributed 93.80% to the new business premium of LIC. The educational qualification prescribed by the LIC for appointment of an agent is a pass in 10th and 12th standards or equivalent, for individuals from rural and urban area, respectively. The Minimum Business Guarantee (MBG) criteria for the LIC agents is also simple to be met. However, like all other life insurers, the ‘strong brand LIC’ is also facing challenges in attracting and retaining its individual agents. This article discusses the macro-environmental as well as organization-specific challenges that this insurance giant needs to address in order to reap the full benefits of the agency channel.
