Insurance Institute of India conducts every year an all India based competitive exam for recruitment of Insurance agents and is known by the name of IRDA exam or Insurance Regulatory and Development Authority exam. The basic requirement to sit for the exam is that he or she must have cleared his class 12th from a recognized university or board.
IRDA exam can be given in two modes, online and offline. Candidates preferring to go for manual mode would have to submit duly filled-in exam entry form to the concerned authority. The form is also supposed to be countersigned by the sponsoring insurer. Now, if the applicant wishes for both the general as well as life branches, he or she would have to fill two separate forms.
As regards the pattern of question is concerned, theme always remains the same, as in all the questions would be related to the Insurance, loans, regulations and their general application. Moreover, you can also expect some numerical problems as well. However, they won’t be rocket science, so you do not have to worry. They would be like normal percentage, discount and loan calculation.
New syllabus will include chapters such as “fact find” tool to help understand customer’s financial goals and facilitate need-based selling and chapter on other financial products so that they can properly understand what they are selling. According to insurers new syllabus is very hands-on and interesting as compared to present syllabus which is very theoretical.
As per insurers this change in syllabus is beneficial but it will in near term impact the recruitment of the agents and with this insurers cost for training of agents will also increase because new syllabus will increase the training hours to 70 hours which is longer time then mandated 50 hours which will increase the cost of insurers.
Agency channel is the back bone of insurance companies as they heavily depend on agency channel and with this new syllabus recruitment of agents will slow down.
Number of individual agents in life insurance industry has dropped since regulation on Unit-Linked Insurance Plan (ULIPs) came in September2010 which slashed the commission from 15% to 5-6%. Number of individual agents has fallen from 29.78 lakh in 2009-10 to 26.47 lakh in 2010-11.