Reportedly, SBI Life has become the first Indian Life Insurance company to be ranked number one in terms of having the maximum number of agents for the Million Dollar Round Table, commonly known as 'MDRT'. In doing so, it has pipped its Korean counterpart Samsung Life with a total of 2677 members in calendar year 2008.
What is noteworthy is that of the 2,677 MDRTs, more than a third i.e. 1010 MDRTs were from the bancassurance channel. Essentially, what it means is that these are State Bank of India staff who've been recognised on the same lines as agents for MDRT purposes. Surprisingly, they are not on the roles of SBI Life.
So how did SBI Life manage to make the cut?
Understandably, these front line sales advisers at the State Bank of India branches known as Certified Insurance Facilitators have been given due recognition as agents since they are more or less dedicated towards life insurance sales except that they run their sales activity at the bank premises. Quite arguably, there are stark differences between agents and bank staff such as access to a ready customer base, customer profile, lead generators, salaried income, etc. Agents on the other hand have to generate their own leads, spend considerable time on the field, do not receive a fixed salary, need to establish their own office space and credibility, etc.
So how has this kind of an arrangement been recognised? SBI Life had approached the MDRT club and pushed its case to be allowed for a special dispensation on account of the sales model adopted by the CIFs claiming to receive no support from SBI Life for sales closures. Just that they operate out of the bank branches while in effect they operate just like an agent. And as one would have to believe, the MDRT club has approved the case amending its rule books.
Once tagged as India's leading bancassurance player, SBI Life has established itself as a credible player on the Agency front. It remains to be seen whether the company would like to reestablish itself as a bancassurance oriented company or would be happy to continue on the agency led growth path eyeing the IPO route in the near future.
What is noteworthy is that of the 2,677 MDRTs, more than a third i.e. 1010 MDRTs were from the bancassurance channel. Essentially, what it means is that these are State Bank of India staff who've been recognised on the same lines as agents for MDRT purposes. Surprisingly, they are not on the roles of SBI Life.
So how did SBI Life manage to make the cut?
Understandably, these front line sales advisers at the State Bank of India branches known as Certified Insurance Facilitators have been given due recognition as agents since they are more or less dedicated towards life insurance sales except that they run their sales activity at the bank premises. Quite arguably, there are stark differences between agents and bank staff such as access to a ready customer base, customer profile, lead generators, salaried income, etc. Agents on the other hand have to generate their own leads, spend considerable time on the field, do not receive a fixed salary, need to establish their own office space and credibility, etc.
So how has this kind of an arrangement been recognised? SBI Life had approached the MDRT club and pushed its case to be allowed for a special dispensation on account of the sales model adopted by the CIFs claiming to receive no support from SBI Life for sales closures. Just that they operate out of the bank branches while in effect they operate just like an agent. And as one would have to believe, the MDRT club has approved the case amending its rule books.
Once tagged as India's leading bancassurance player, SBI Life has established itself as a credible player on the Agency front. It remains to be seen whether the company would like to reestablish itself as a bancassurance oriented company or would be happy to continue on the agency led growth path eyeing the IPO route in the near future.
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