Attrition of Agents in Indian Life Insurance Companies

Abstract

The insurance industry in India is primarily human-intensive, and the business is managed by a large number of agents or advisors. This article identifies the factors responsible for attrition of individual agents of life insurance companies in India and explores its implications for these companies. The study draws and builds on findings from the primary survey of individual agents and senior officials of public and private life insurance companies in the country. The article posits fuzzy logic theory to estimate the attrition index. Some of the mitigation measures of agent attrition are proposed, which provide an initial assessment of the extent to which these can be applied in the Indian context.