New Delhi: Leading private sector insurer Reliance Life on Tuesday said it has hired 2,500 persons under a new distribution model, wherein insurance agents would get fixed stipend and variable commission, while 3,000 more people will be recruited during the current fiscal.
The hiring plans were announced by Reliance Life Insurance Company (RLIC), part of Anil Ambani-led Reliance Group's financial services arm Reliance Capital Ltd, alongwith the launch of 'Career Agency', a new distribution channel aimed at enhancing the company's reach and footprints across the country.
Under the new channel, RLIC plans to hire 5,500 career agents across 220 branches by end of 2012-13. Out of this, RLIC has already recruited around 2,500 career agents and deputed them at over 150 branches across the country and will hire about 3,000 career agents in the next three months.
RLIC said it is a first-of-its-kind distribution channel by any private insurer in the country that is based on stipend and variable commission pay-out structure.
"The main aim of Career Agency distribution format is to support new recruits during the learning phase so that they can concentrate on training and learning the ropes rather than being under the pressure of generating business to earn commission from the very first instance," RLIC President and Executive Director Malay Ghosh said.
"We will help them devote the requisite time and effort to develop a good understanding of the industry and look at it as a long-term career option," he added.
In the career agency distribution model, the recruited persons would be called 'sales trainees' and would be given a fixed stipend for a six-month training period. Once the advisor completes this training period and passes the licensing exam, the person would become a 'career agent' and moves to a variable commission-based pay-out structure.
The career agency distribution format is a highly successful sales advisor model of RLIC's strategic partner Nippon Life and it has been now adapted to the Indian Market.
The plan is aimed at focusing on Tier III and Tier IV cities and towns for hiring of prospective career agents.
"The basic objective of this distribution model is to increase number of the sales people in the field working for the company full time," Ghosh said.
The career agency is the third new distribution channel introduced by RLIC this year. Earlier, the company launched two new distribution models; Life Plaza and Face-to-Face; and added them in the existing sales formats.
The company had a distribution network of 1,230 offices and over 1,50,000 advisors as on March 31, 2012.