Abstract
The present study aims to canvass the performance of intermediary channels in Indian Life Insurance Industry viz. individual agents, corporate agents, bancassurance, brokers and direct selling. The conduct of performance has been deliberated in context of business premium collected and number of policies issued by various channels through Two-Way ANOVA. The data has been figured out over the period of seven years, i.e. from 2006- 07 to 2012-13. The findings demonstrate that in the context of premium as well as policy, there is difference in mean scores for various categories of channels, but no difference has been found with respect to time period. Besides the study also measures the augmentation in their performance, through compound annual growth rate (CAGR) by using the log linear regression model which reveals that individual agent is the foremost performing channel in terms of generating business. But sustaining efficacy of every channel has become one of the confronting issues for insurance domain.
Highlights
The performance of any entity depends how proficiently its intermediary network executes the business
The scenario of Indian Insurance Industry reveals that it is one of the massive sectors of the economy and especially life insurance domain has set up the benchmark in its growth (Chaudhary & Kiran, 2011:146-148) which is attained by the effectiveness of its distribution channels
According to (Kutty, 2010:26) and Desk (2013), since the nationalization of the Life Insurance Industry in India in year 1956 and opening up of the market by Insurance Regulatory Development Authority (IRDA) in year 2000, there were only individual agents working as a distribution channel with the industry (Vishwanathan, 2006: 20-21) but the last few years have witnessed the exceptional growth in the variety of distribution channels
Summary
The performance of any entity depends how proficiently its intermediary network executes the business. Apart from the conventional ways of distributing an insurance policy, life insurers have been working with multiple and innovative distribution channels, namely corporate agents, bancassurance as corporate agents, brokers, direct selling and web aggregators for distributing its services to target customers (Govardhan, 2008: 7-8). They are adopting a multi-channel distribution strategy to gain success and survive in a competitive environment. The article concludes by providing discussions on the policy implications
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