IRDA forms panel to update syllabus for insurance brokers

The Insurance Regulatory and Development Authority (IRDA) has constituted a committee to constantly update syllabus and training methods for personnel employed with insurance brokerage houses.The decision was taken after it was observed that unauthorised and unqualified personnel were engaged in solicitation process at some of the insurance broking firms, IRDA Chairman TS Vijayan said here today."In this context, the regulator has constituted a committee to update prescribed syllabus and to identify the efficient cost-effective ways of ensuring easy access, including online modes, to cater to the continuing training and educational needs of insurance broker personnel," he said."High level of attrition and involvement of unauthorized and unqualified personnel in solicitation process at some of the insurance brokers was observed and this (issue) deserves our focus."Vijayan was delivering his keynote address at a summit organised by Insurance Brokers Association of India.He said the unprofessional approach of insurance brokers will have cascading effect on the quality of services offered to the end customers.According to him, the first insurance broking licence was issued by IRDA, headquartered in Hyderabad, in 2003. As on June 30, 2013, there are over 300 licensed direct, composite and 6 reinsurance brokers operating in the country.During 2012-13, the insurance brokers contributed around Rs 14,700 crore of business in non-life insurance sector and Rs 12,300 crore in life insurance segment."The issue of allowing sub-broking is being discussed with various stakeholders. A final decision on the matter will be taken in the near future," the insurance industry veteran said without specifying a timeframe.On FDI in insurance broking, he said the regulator is open to revisit the current norms, which put a cap at 36 per cent, and a committee is examining the issue.