Life insurance cos going slow on recruitment

by Naga Sridhar
Hyderabad, April 26 life insurance companies have slowed recruitment because of growth retardation in the new company and focus on cost reduction, according to Mr SB Mathur, Secretary General of the Life Insurance Council .

"The direction of expansion and entry, in particular agents, has declined over the last six months. Although the sector has absorbed 50,000 during the first six months of the year, we understand that there was a reduction in dose for the last six months, "said Mathur Business Line.

Although some companies, which began operations recently, have been recruiting people, it was not "significant" in the number, he said.

RECESSION STRATEGY

A good sign for the industry is the continuation of the renewal premium if the growth in new business has declined.

"Last year, growth of total activity (repeal of the premium and the premium new pooled) was more than 15 per cent. Growth is still there, but the fact is that growth is much lower than in previous years, when he hit 50 percent, "he said.

Insurers must focus on "safe" products guaranteed, he said, adding: "The safeguards are becoming inevitable. However, it should not be open to all and long-term guarantees, at he said.

The products, which would be a good prime repeat low cost, should be designed.

"It was also observed that there is a growing interest in traditional products as investors are losing confidence in the markets. This could be the growth of unit-linked insurance plans (ULIP)."

The industry should also be prepared for zero growth of the uncertainty of the coming period, he added.

CAPITAL

Infusion of additional capital has also been a problem for the industry, Mr Mathur said, adding that the draft bill amending the insurance May include provisions for areas such as hybrid capital.

"The positive impact of the proposed increase of the upper ceiling on foreign direct investment is also a time when the financial sector is in trouble abroad. We must wait and see how it brings more global players in India, "he said.