E-Paper
Insurance
Insurance
To you and me in India insurance meant the LIC. It was something you put money into for a long period of time and benefited from at a later stage. This sector, experts say, is waiting to explode. As the sector opened up a couple of years back and private players entered and as the spending and saving power of average Indian increased, so did job opportunities.
BRIEF DESCRIPTION
Insurance is largely an untapped sector. It is one of the sectors which will see phenomenal growth, hence is likely to be a huge 'jobs' pool. As of today only 5 per cent of India is insured. According to Insurance Regulatory and Development Authority (IRDA) any one earning more Rs 5,000 is 'insurable'. By that logic, middle-class and lower middle class fall under this bracket, which amounts to nearly 80 per cent of India's population.
The traditional 'agent' has given way to multi-profiled agents. The entry-level segments here include Retail (agents), Bank Assurance, Brokership channel and DSA (Direct Sales). Apart from these there are operations (back office underwriting port folios).
People interested in this sector necessarily have to be self-driven. Since the job involves personalised service and earning the trust of the potential 'insured'.
EXPECTED REMUNERATION
a) Retail: On the first year, it is purely on a commission basis. Second year onwards, based on performance, person is on the pay roll. He could get two lakh per annum apart from incentives, which is generally 5 per cent of the business you get in.
b) Bank Assurance: Rs 5,000-7,000 per month plus incentives (25 percent of business done). Depending on performance in the first year, you get Rs 10,000-12,000 per month (with incentive of 10-15 per cent).
c) Brokership channel: Rs 5000-7,000 per month plus incentives (10 per cent of business done). In the second year, you could get Rs 10,000-12,000 with incentives (10 per cent). The percentage of incentives is less because of the cost incurred in training. This is technical field requiring the understanding of mutual funds and stocks, etc.
d) DSA (Direct Sales): Starting salary Rs 5,000-7,000
e) Operations: Rs 10,000, could grow to become Rs 12,000-13,000 (no incentives). This department needs communication skills.
SOCIAL STANDING
As an agent your job is tough. It requires a good amount of legwork and might be perceived as non-intellectual activity. However, with growing awareness about the sector's potential to create job, change is bound to happen. Acceptance will grow.
Agent: First year is the toughest. If you prove your competence, you can appoint your own team.
Bank Assurance: Based in a bank, combining office and fieldwork.
Brokership channel: Office and fieldwork
DSA: Office and fieldwork
YEARS OF TRAINING REQUIRED
IRDA has set guidelines for training of agents. It says agents have to undergo 100 hours of mandatory training. Apart from these, every company gives in-house training to its employees.
PLACES TO TRAIN
In-house training
PLACEMENT
Private universities such as RAI in Delhi provide Post Graduate degree in Insurance. Government of India runs institutes to train underwriters. Management institutes like IMT Ghaziabad also teach Insurance. Association of Mutual Funds (AMFI) train people in Mutual Funds and Insurance related topics.
CHANCES OF GOING ABROAD
Remote
WORK HOURS
Flexible. As agents you are not needed to be in the office. The other three offices are generally office based.
PERKS/OTHER BENEFITS
You can get loans at very low interests, as many Insurance companies are into banking. Companies such as HDFC Standard Life Insurance have 'Club Membership scheme' where depending on your performance you are made members to Gold or Silver clubs. As part of various contests held in the company you could win expensive gifts such as washing machine to paid trips abroad.
The facts and figures quoted here are indicative, not exhaustive. These are broad industry estimates and do not pertain to any particular company.
For getting an overall picture of the Insurance sector HindustanTimes.com spoke to Faisal, Regional HR North, HDFC Standard Life Insurance Company Limited in Delhi.
