Insurance sector is struggling to cope with massive attrition rates among frontline staff, according to a senior official in the industry. The private sector is the worst hit, says Rajendra Ghag, Senior Executive Vice-President and Chief Human Resource Officer, HDFC Life.
“I would put the churn at the bottom at 100 per cent,” Ghag told Business Line here on the sidelines of annual ‘town hall session’ with employees in the southern region.
Called Sparsh, this employee communication programme sees senior management of the company travel countrywide to interact with them directly.
Depending on a theme of the year, discussions are held to reflect on industry performance, business performance, initiative updates, achievements and organisational goals.
The theme for this year is the macroeconomic situation, marked by slow growth that has made selling an increasingly difficult proposition.
MAIN CHANGES “Growth rate of around five per cent leaves no industry unaffected,” Ghag said. This calls for realistic appreciation of main changes taking place at the ground level in insurance.
For one, the rich-poor divide has widened. Also, the searing inflation is not leaving any significant disposable income with the middle-class.
The latter is holding back money for whatever it is worth.
Spending has taken a hit. This is the context against which insurance products need to be sold.
High attrition rates have only worsened the situation. “We see a constant flight to IT, ITeS, and retail. We need good sales people but they are hard to come by,” Ghag said.
BANKING BROKERS According to him, bankers being proposed as insurance brokers will make for a momentous shift in the way business is done.
“But this is still in the nature of guidelines,” Ghag said. In his opinion, the intervening Lok Sabha elections will have a significant bearing on when it can become a law.
Nonetheless, HDFC Life is getting prepared for the eventuality lest it should get caught on the wrong foot.
“This is a momentous shift and is for the long term,” he said. It is also ‘a game of patience and sustenance’ to bring a level-playing field among varied players.
HDFC Life will not be found wanting when the regulator makes the big call, Ghag said.