Bangkok: Reliance Life Insurance Company, a unit of Anil Ambani-led Reliance Capital, plans to hire 5,500 agents on payroll by the end of next month in a bid to reduce attrition and boost the company’s new business, an official said.
“We are introducing career agent format. Under this format, agents will be assured of a fixed level of income,” said Malay Ghosh, president and executive director of Reliance Life Insurance.
He said the company has already begun hiring process and by the end of September 5,500 people will be employed as “career agents.”
When asked about the amount of salary, Ghosh said those things were in the process and it will be worked out soon.
“I can’t tell you right now that exactly what amount of salary I will be paying. But it will be a fixed income plus incentives,” Ghosh told IANS.
The company also plans to hire 50,000 new agents who will be working on commission basis.
The business of Reliance Life Insurance, which has over Rs.18,700 crore assets under management, is largely driven by agents working on commission basis.
At the end of the last financial year the company had 150,000 agents, which are also called insurance advisors. However, the number of agents declined by 30,000 in April-June 2012 quarter.
“Attrition rate is very high because of uncertainty in income. We are hiring new people and also trying to make sure that they get enough incentives to stay connected with the company,” Ghosh said.
Ghosh said the company targets to increase the number of insurance advisors to 150,000 by the end of the current financial year from around 120,000 now.
Reliance Life Insurance is the largest private insurance firm in India in terms of number of policies. It operates through a network of 1,230 branches spread across the country.
It also has 35 corporate agents and 72 brokers. Over 60 percent of the company’s insurance policy is sold through agents.
“Our business is spread evenly – 34 percent of our new businesses come from rural areas,” said Ghosh, adding that only 15 percent of the company’s businesses come from Tier-1 cities.
Ghosh said Reliance Life Insurance targets to increase its reach and product mix to become an alternative of Life Insurance Company (LIC).
The government-run LIC controls 70 percent of life insurance business in India while the rest 20 firms combined have just 30 percent market share. Reliance Life Insurance controls 5 percent market share.
Ghosh said Reliance Life Insurance targets to consistently expand its business and increase market share.