The wave of globalization has swept
the world in its fold and has brought about substantial
changes in the world economy. The insurance sector, too,
has not been bereaved of these changes, and there have
been changes galore in the rising Indian economy. As the
term `insurance' suggests, it insures one against the risks
associated with life and belongings. With the intensity
and type of risks increasing, and the organizations preferring
flatter structures, the duties and responsibilities of
an agent have also increased manifold, from being a mere
seller of an insurance policy to being an advisor, friend
and confidante. Also, risks, being an integral constituent
of an insurance policy, there arises a need for a mechanism
to assess and monitor these risks. Against this backdrop,
a continuous risk improvement system is discussed here,
which can help mitigate and control the risks in the best
possible manner. This paper precisely deals with these
issues mentioned above.
Historically, agents or brokers are the
essential links between the consumers and the insurance
companies, providing personal service in the selection
of insurance coverage that meets the clients' needs. With
increasing economic necessities and emerging life styles,
the purchasing power and social stature of the Indian society
is constantly changing. Unforeseen circumstances in life
and the exceptional growth of the Indian economy augurs
growth in the insurance sector in India. As per the estimates,
insurance premiums increase by about 4% with an increase
of 1% in the GDP. The insurance schemes offer an umbrella
cover to all and sundry, of all age groups, including non-living
things and personal belongings. Rural and semi-urban areas
are markets that can be tapped to the advantage of the
insurance sector. Insurance products are also popular since
they promise a child's future needs, such as education,
marriage, housing, etc. The average Indian today invests
5.4 times higher in life insurance than what he/she did,
before private players penetrated the market. Also, a dramatic
increase in health care costs in the last decade has made
the role of an agent an increasingly important part of
the health care and the insurance sector. The agents are
at a level where they are in proximity with, and have direct
contact with the customers. Agents devise and innovate
cost-saving ideas which the managers can easily tap on.
The structure of the organization calls
for various levels, and the organizations or individuals
do not sell policies directly, but rely on these levels—the
lowest level being the closest to the customers. More often,
insurance companies use intermediaries, also called as
advisers, to market and explain insurance products to the
client or the insured. Due to the complexity of insurance
coverage and the multiplicity of the services, every organization
or individual needs a trusted insurance advisor—an
agent, a broker, or a consultant—to counsel them
on insurance matters. Thus, given the tectonic changes,
there are opportunities galore for employment in the insurance
sector. Where flat organization structures are in vogue
today, the job profile of the agent has also increased
manifold. Quality overpowers quantity in manpower planning.
The agent has to play multiple roles of being an advisor,
a broker, a friend and a confidante to the prospective
client. |
