How will the passage of the Insurance (Amendment) Bill influence the way life insurance is sold in India?
Ever since the market was opened up in India two years ago, the range of products available has increased and the value proposition associated with life insurance has gone up considerably. Monopolistic life insurance markets are product-dominated and the products tend to be savings-oriented. From my experience of other markets, I can say that this changes when markets open up. I feel that the Indian industry is headed in the right direction, with a wide product portfolio addressing the specific needs of consumers. Having said that, the amendment will pave the way for the entry of corporate agents and brokers. The agent will continue to be the dominant sales channel. New modes of distribution will emerge, but the experience of other markets suggests that such distribution avenues will only supplement the sales force. Agents are notorious for hardselling policies that give them the highest commissions. Will that change? People buy insurance because of their fear of dying too soon or of l
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