Heavy Job Loss Expected In Indian Life Insurance Industry
50000 executives /agency managers & 12 lakh part time agents of Life Insurance companies
are going to be out .These are the estimates of Research & Analysis Wing of Insurance Foundation Of India and were released by S. K. Sethi ,Vice President of the foundation ,which is a non profit organization and is working on various projects connected with the growth of Indian Insurance Industry.These facts are being supported by the fact that 454 branches of Life Insurance companies ( all are private sector companies) have been closed during 5 months period from April to August in 2010.
Many more branches of life insurance companies are going to be shut in the coming months.It is surprising that Sensex is going up, GDP is growing,Auto sales are booming but job losses have occured in this industry.
One of the reason can be that Life insurance companies will be coming out with their IPO's in beginning of 2011 and they have started cleaning up operations by reducing staff,overheads so that they can present an attractive picture to the investors ,who are going to subscribe to their public issue. Appreciation of the value of share after listing on the stock exchange will immediately result in higher market capitalistion and hence improve the wealth of Indian promoter companies /individuals.Is it that in this money game thousands of executives have suffered the job loss ?
The loss of life insurance industry may turn out to be gain of General Insurance industry as well as health insurance companies .They will have to train these new employees in their products but these people have been having their data base to whom they have sold the life insurance products in the past.Let us be hopeful and wish for the growth on Indian Insurance industry.
Heavy Job Loss Expected In Indian Life Insurance Industry