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Reliance Life to introduce fixed income for advisors

Reliance Life plans to hire 5,500 career agents across 200 branches by end of this financial year

August 23, 2012 5:21 IST | India Infoline News Service
To reduce attrition and enhance customer service, private insurer Reliance Life is introducing fixed salary for insurance advisors. The company 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, Reliance Life said.  

Reliance Life has recently launched Reliance Life Plus Club—a post-sales customer service initiative. Japan’s Nippon Life along with its partner Reliance Life has introduced the concept of post-sales services to the Indian insurance industry. As a strategic partner, Nippon Life holds 26% stake in Reliance Life. Reliance Life has over Rs1.86 trillion in assets under management.

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.

Reliance Life would mandate its advisor or agent to go back to the customer, beyond just collection of premium, with a view to maintaining a long-term relation with its policyholders. 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.

In India, insurance agents work on commission basis and have uncertain income level. Hence, the industry is facing a very high attrition rate.

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