Insurance companies lure ex-govt, defence personnel

MUMBAI: For Prakashan P, 36, from Kasargod district, Kerala, last year was a complete change in careers. After serving 16-odd years as a storekeeper in the Army Service Corps, Prakashan chucked his career as a non-commissioned officer to become a unit manager for ICICI Prudential Life Insurance. Prakashan’s decision to join forces with a private sector life insurance company stemmed from the promise of a higher salary as well as the possibility of growth.Something he didn’t see happening in the army. ‘‘I tried twice to be part of commissioned services (...where promotions take place), however did not make the test,’’ he says.
Now a few months later, Prakashan is earning a higher Rs 14,500 as fixed salary compared to Rs 11,000 the army paid him. And there is also a variable sum he can earn based on the number of people he recruits as advisors or agents and the quantum of business they do. But he says the biggest advantage is that he’s with his family - his wife, a 7-year old daughter and a 3 year old son - permanently.
Recruiting junior commissioned and non-commissioned officers who have taken voluntary retirement is ICICI Prudential’s latest strategy to garner business from the rural segment. So far the company has 250 retired non commissioned officers on board in districts spread across Andhra Pradesh, Tamil Nadu, Kerala and Uttar Pradesh. ‘‘We’re looking at this segment because we feel given their background and training in the army, these people will have discipline and proven leadership skills. And this model has tremendous potential for scalability,’’ says Judhajit Das, chief - human resources, ICICI Prudential Life Insurance.
ICICI Pru isn’t however, the only company to look at specific segments of people to recruit when it comes to growth in the rural market. SBI Life, for instance, has looked at recruiting government employed primary school teachers, midwives and even panchayat officers to sell insurance in villages. ICICI Pru’s recruitment drive for these officers takes place through various means. It approaches various corps through the settlement boards and with their permission, camps are held where ICICI Pru officials make presentations. After a screening process, people are recruited who may have already taken voluntary retirement or are planning to do so. In February, 2007, ICICI Pru set up a separate rural business channel and has so far written over Rs 100 crore business from this segment.