Things were much easier for life insurance agents before. But it all changed after October 1, 2011, when the new syllabus took effect.
A simple comparison will help. The older syllabus would see at least 7 out of 10 clear the test. However, under the new framework - which is considered much tougher - only 4 out of 10 applicants are expected to get past the hurdle.
“After the new syllabus, the examination has got stricter. But this will only help us in producing quality and professional agents.
Earlier, the passing percentage was as high as 70% against the current 38% for the industry,” said Rajesh Sud, managing director and CEO at Max NewYork Life Insurance.
“Agents contribute 90-95% to our premiums received. Candidates will take time to get hold of this new examination. Passing percentage and rapid recruitment both have definitely taken a hit,” says RR Dash, zonal manger, Life Insurance Corporation.
Experts say this switch in the syllabus has a bigger purpose: to help agents grasp the nuances of the market and understand the needs of the customer better. Also, a revamped pattern, they add, will be useful in enhancing their product selling skills to meet the customer’s requirements.
“Recruiting life agents has always been challenging for the industry. Some 30% of our business comes from the our agency force, and now with the falling success ratio, recruiting may get affected too,” says Aneesh Khanna, senior vice president head- marketing & product management, IDBI Federal Life Insurance.
There is a contrarian view though. Some say the change in the syllabus is beneficial up to the extent of only producing quality agents as the cost incurred by the players does not measure up to the outcome. “Cost for training of agents has gone up at least 6-7 times as against the cost incurred when the older syllabus was in place. Also, the new syllabus is not very different and advantageous from the older one,” says GN Agarwal, chief actuary at Future Generali Life Insurance.
“The cost of training has definitely shot up, but compared to private players, we have not been much affected as we have our in-house training department,” added Dash of LIC.
In addition, this has not only affected the performance of urban candidates, but also the participation of candidates from rural areas which has slipped significantly. If the passing percentage continues to remain low, this may also impact the business of those insurers whose major chunk of business comes from their agency force.
A simple comparison will help. The older syllabus would see at least 7 out of 10 clear the test. However, under the new framework - which is considered much tougher - only 4 out of 10 applicants are expected to get past the hurdle.
“After the new syllabus, the examination has got stricter. But this will only help us in producing quality and professional agents.
Earlier, the passing percentage was as high as 70% against the current 38% for the industry,” said Rajesh Sud, managing director and CEO at Max NewYork Life Insurance.
“Agents contribute 90-95% to our premiums received. Candidates will take time to get hold of this new examination. Passing percentage and rapid recruitment both have definitely taken a hit,” says RR Dash, zonal manger, Life Insurance Corporation.
Experts say this switch in the syllabus has a bigger purpose: to help agents grasp the nuances of the market and understand the needs of the customer better. Also, a revamped pattern, they add, will be useful in enhancing their product selling skills to meet the customer’s requirements.
“Recruiting life agents has always been challenging for the industry. Some 30% of our business comes from the our agency force, and now with the falling success ratio, recruiting may get affected too,” says Aneesh Khanna, senior vice president head- marketing & product management, IDBI Federal Life Insurance.
There is a contrarian view though. Some say the change in the syllabus is beneficial up to the extent of only producing quality agents as the cost incurred by the players does not measure up to the outcome. “Cost for training of agents has gone up at least 6-7 times as against the cost incurred when the older syllabus was in place. Also, the new syllabus is not very different and advantageous from the older one,” says GN Agarwal, chief actuary at Future Generali Life Insurance.
“The cost of training has definitely shot up, but compared to private players, we have not been much affected as we have our in-house training department,” added Dash of LIC.
In addition, this has not only affected the performance of urban candidates, but also the participation of candidates from rural areas which has slipped significantly. If the passing percentage continues to remain low, this may also impact the business of those insurers whose major chunk of business comes from their agency force.
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