Life Insurance Employees to Lose Jobs
The indian life insurance industry may stand to lose as many as 10,000 jobs in the coming months as the apex body Insurance Regulatory Authority of India (IRDA) enforced a new set of norms from this month onwards for the ULIP (Unit Linked Insurance Products) that aim toward cutting down on high commission the insurance agents were entitled to. Hitherto, agents used to earn over 20% commission on every ULIP sold and the commission continued year on year till the policy holder paid premium. This is one reason why ULIP products, which provided investment options along with insurance coverage were an instant hit in the market as the same were pushed by the insurance agents. However, with agent commissions being slashed down, insurance companies will be forced to downsize their distribution channel as well as the workforce. It is estimated that between ICICI Prudential, HDFC Standard Life Insurance and Max New York Life Insurance alone, 8,500 employees may lose their jobs.