Reliance Life Insurance said that it will target semi-urban and rural regions to hire around 5,000 advisors on fixed-salary basis by the end of current financial year. The private insurer is planning to recruit around 5,000 insurance agents from tier-II and tier-III cities and give them jobs as their career option with a sense of security.
According to Reliance Life, fixed salary-cum-variable income will add a new dimension in the domestic insurance sector. In India, insurance agents work on commission basis and have uncertain income level. Hence, the industry is facing a very high attrition rate.
To reduce attrition and enhance customer service, Reliance Life is introducing fixed salary for insurance advisors. It is introducing fixed income system for insurance agents under its new format called career agent. The purpose is to provide a minimum fixed salary to agents to inculcate a sense of job security and professional commitment.
The company plans to hire 5,500 career agents across 200 branches by end of FY12-13. The insurer will give a fixed stipend to insurance agents for the first six months during their training tenure and help them pass the licensing examination, before they become part of the company. In the insurance sector, financial advice is an essential part at the time of signing up the customers. Reliance Life has identified some potential non-metro cities, small towns and rural areas across the country to hire sales agents on its pay-roll.
Recently, Japan’s Nippon Life with its partner Reliance Life introduced the concept of post-sales services to the Indian insurance industry. As a strategic partner, Nippon Life holds 26% stake in Reliance Life. Post-sales service is a widespread practice followed by many companies to retain their customers. The service involves a continued relationship between the company and its customers through maintenance and advice-like offerings for years after the actual sale of the product.