The number of direct employees in the 24 life insurance companies too came down by over 2,000, as per the data available with the Life Insurance Council.
The number of agents fell to 21,620 as at end-December 2012 from 23,780 in the same period last year.According to a top functionary of a private sector life insurance company, downsizing and cost-cutting by many players were behind the trimming of the agent force.
Unfavourable regulatory environment, which began with new norms for unit-linked insurance plans in 2010, is largely responsible for this situation. Industry experts feel that some agents might have also left the profession due to shrinking commissions.
In the first nine months of FY 2012-13, about 1,000 branches folded-up. The dip in new premium income since the third quarter of 2010-11 due to new norms for ULIPs has been forcing the insurers to cut costs.
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