More than 8 lakh LIC agents left in the last year

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More than 8 lakh LIC agents left in the last year
24 Feb 2022
6 min read

News Synopsis

Individual agencies have always played a key role in keeping India's Life Insurance Corporation (LIC) at the forefront of the insurance industry. LIC is known for its army of individual agents spread throughout the country. LIC has shifted from an era when no one cares about insurance to today when demand is relatively good. 

LIC is preparing for an initial public offering (IPO),  the largest IPO the country has ever seen. However, in recent years, the situation has changed due to the pandemic. Individual brokers bring life insurance companies 96% of new business premiums, many of which no longer work for the company. 

The number of active single agents at LIC decreased by 17.48% from 10.86 lakh as of March 31, 2021, to 8.96 lakh as of September 30,  2021. With an ongoing pandemic, the business impact may continue for some time. 

The Regulatory and Development Authority of India (IRDAI) audited a single agent and a company's agent, eventually reducing the hiring of agents. LIC is still the largest life insurance company, with a huge network of 13.5 lakh individual agents compared to 11 lakh agents across the private life insurance industry.

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