Should you become an LIC agent? Is LIC a good career? Are LIC agents struggling to make money? What is the future of LIC agents? Should you change your career from LIC to others? What’s affecting LIC agent’s career? There are a lot more questions in the minds of LIC agents.
For newbies who want to be an LIC agent? If you answered “Yes,” then hold tight, as the future of LIC agents in India is taking a whole new dramatic turn!
This blog will give you a deep understanding of whether the magic of a LIC agent will fade with technology or bloom like a flower! The entire compilation is based on the Facts collected with our expert research & inputs from the LIC achievers.
Table of Contents
What Is The Future of LIC Agent in India? Expert Analysis
A Quick Look at Current Situation of LIC agents in India
What is the fuel of LIC? Its agents! With around 14.4 lakh agents standing strong, LIC is the lifeline of its operations with 95% of its business coming through agents. That’s huge, right?
However, things are beginning to switch up a notch. The government is now seeking amendments to the Insurance Act to allow agents to affiliate with multiple insurance companies.
Good for customers – there will be a variety to select from. But for LIC? This might mean more players in the market which could reduce the market share of their agents and have an effect on LIC’s position as the market leader. This poses some rather important questions as to the potential of LIC agents.
Is change going to open up new opportunities or is now going to pose challenges in front of LIC agents that they cannot cope with? As they say, only time will tell about the future of LIC agents but one thing is for sure, the insurance game has just gotten even more interesting!
How Far Will Regulatory Changes Affect Future of LIC Agents?
This proposed open architecture system could usher in a new dawn, bringing dramatic changes for LIC agents.
- Currently, the agents are limited to selling products from only one insurer in any given category. However, if this restriction is removed, agents may opt to sell policies of different insurers to their clients.
- This could mean more options for consumers, but it will also increase rivalry in the agents’ market.
- And let’s not forget that LIC’s traditional agents may be put under pressure since customers rely on the agents who offer more variety.
Oh, there is more—shifts of commission models have already triggered a certain amount of commotion…
- First-year commissions have been reduced from 35% to 28% which makes many of the LIC agents bothered regarding their future earnings.
- Further, fueling the fire, LIC has institutionalized a clawback provision, which means that agents might have to return their commissions if the policyholder surrenders the policy shortly after the purchase.
All these changes are a part of cost control and efficiency in the insurance industry but they could discourage people from joining the profession. The future of LIC agents have quite a bumpy road to look forward to: there are obstacles, but there are also prospects out there!
What does the survey say About LIC Agents Future?
A survey carried out by an independent agency revealed that 68% of LIC agents are now insecure regarding their employment owing to regulatory changes that have threatened to cut their income and increase competition.
Worryingly, 75% of those interviewed stated they may well change careers if their earnings are affected. On a positive note, the LIC ‘Jeevan Samarth’ is restoring some light to the agents.
This transformation program aims to teach agents more resources and tools to meet these ongoing market challenges, demonstrating LIC’s commitment to maintaining the relevance and proficiency of agents in today’s environment.
Is Technology- Boon or Bane for LIC Agent's Future?
LIC agents are facing new challenges due to technology advancements, as new platforms and insurance products are taking over the market.
According to a report, 45% of customers are now able to purchase their insurance online saying that the process is convenient and easier to compare insurance policies.
So, what does this statistic say about the LIC agent’s future?
The shift implies that LIC agents have to become more effective by adopting technical solutions and enhancing technological literacy. Quickly learn more about 10 Mistakes to Avoid as LIC Agent.
But it’s not all bad news! Even though there has been a tremendous increase in internet sales people still enjoy the kind of services the agents provide.
People who are able to incorporate technology as a tool while retaining the human element could do well in these changing dynamics, adapting threats into strengths.
What does the future hold for LIC Agents in India?
The future of LIC agents might seem uncertain, but there are plenty of ways to secure their place in the changing insurance world:
- Going Digital: Thanks to applications, the agents with whom customers interact can provide better service and be primed for success.
- Expertise: Specialization in certain market segments or products allows the agents to distinguish themselves through the solutions offered.
- Go with the flow: Being aware of changes in regulation and knowing the current market is very important. Programs such as the “Jeevan Samarth” can help train agents to obtain the necessary skills.
- Creating Bonds: Insurance is still a people’s business because relationships dominate the sale of insurance policies. Building trust is still key to winning strategies.
- Rolling with Regulations: Efficiency in handling new rules will be imperative for agents to sustain relevance and resultance.
- Enroll in Training: Keep a regular mentor to train you about the changing dynamics of the LIC agent market & how to thrive amongst challenges. The Ajay Gupta shall be the best choice for you in Bangalore.
With this in view, LIC agents can avoid the mentioned challenges creating a winning model that includes adaptability, advanced technological tools, and a personal approach – adding up to a secure future of LIC agents.
Let's wrap up!
Currently, the fate of LIC agents is in a delicate balance due to the changes in norms and the introduction of new technologies in the Indian insurance sector. It is not all gloom and doom for agencies; it is just the start of a new era, and there is an incredible opportunity for Trendsetters and newbies.
LIC agents will have to fall in love with technology- a simpler approach with the help of tech and a human touch- what a deadly combo!! These efforts will aid them in avoiding losses in the competitive market.
To be clear- LIC agents will now have a chance to level up!! With new technology comes new responsibilities, and with a proper skillset there is still a lot of scope in the market. The future of LIC agents rests with the agents themselves and their ability to adapt to changes, bring value, and satisfy the upcoming client demands.
Dont fret! Stand strong, welcome new changes and you will be UNSTOPPABLE!!!
