Insurance Marketing Firms (IMF), introduced by the Insurance Regulatory and Development Authority of India (IrdaI) as a new distribution channel will be a one stop shop for all financial needs. They would help to improve distribution reach and boost cross-selling in the Tier-II and Tier III towns.
The IrdaI has allowed Insurance Marketing Firms to solicit and procure products of two life, two general and two health insurers through salespersons. The firms would also have Financial Service Executives (FSEs) who would be able to distribute any product –credit cards, mutual funds or National Pension System (NPS) products, apart from loan products from Non-Banking Finance Companies (NBFCs).
Insurance service providers would have to be school passouts and take a written examination to qualify for the post. The FSEs would be issued licenses by the financial regulators concerned.
The whole idea is to boost penetration and have a cross-selling mechanism through this channel since insurance products could be sold to mutual fund customers and vice-versa, said insurers.
Insurers also say that slow career growth and low remuneration also forces many insurance agents to quit the sector. Therefore, existing insurance agents may also look insurance marketing firms as a new career opportunity. They would be paid a minimum salary of Rs 5,000 per month. FSEs would be remunerated according to the regulations and norms of the sector.
No comments:
Post a Comment