Kathmandu. The majority of the life insurance market in Nepal is represented by the insured from rural areas. And a large number of potential insurers for life insurance are still in rural areas.
Since the savings and purchasing power of the insured in rural areas are limited, they cannot afford a large insured life insurance policy like urban and commercial insurers. They have access to a normal actuarial insurance policy that can be made possible by a small saving. However, not only in terms of the number of insurance policies sold by life insurers but also in terms of contribution to the overall life insurance business, the contribution of rural communities is more than that of urban communities.
Insurance agents working in rural areas reach the doorsteps of the remote areas where they are in dire need of insurance, explaining the importance of insurance, teaching about insurance and motivating them for insurance. They work harder than agents working in urban areas, on the contrary, the amount of insurance and commissions they earn is smaller.
It is natural for urban agents to earn more than rural agents, as urban agents have the opportunity to insure the rich and people involved in various professions. However, the role of rural agents is many times greater than that of urban agents in terms of their contribution to improving access to financial security for poor communities.
For the widespread expansion of insurance in Nepal, there is a need for hardworking and professional agents in rural areas rather than in urban areas. Suggestions on how to address the challenges faced by agents working in rural areas are included here:
In rural or semi-urban areas, the challenges of low average insurance premiums, scattered settlements, over-reliance on personal relationships, and low insurance literacy are prevalent. In such a situation, the agent should focus all his attention on increasing the volume of the sale, even if the personal insurance premium is low.
Even if you can get life insurance of 1 lakh, 2 lakh or 3 lakh rupees, it will gradually lead to success. Although the actuarial value of this issue is very low compared to the current inflation and future price increases, it is important to make the insured understand the importance of insurance and to inculcate the habit of saving. No one can have a correct understanding of insurance unless they have life insurance.
The rural agent should continue to reach every door, office, business and business within his or her work area to explain the insurance, understand their perception and problems, and inform them about the options for the solution.
{{TAG_OPEN_span_39}Group Meetings:
In rural areas or semi-urban areas, organize meetings with any social group that can make an impact among small but local residents on topics such as insurance awareness, financial literacy, opening of bank accounts, give them an opportunity to satisfy their curiosity.
Don’t hesitate to teach you how to open a bank account, get insured, become an agent. For this work, do not hesitate to ask for the help of the leadership of a community organization, mother’s group, neighborhood improvement committee, cooperative, self-help group, and this can only be possible. This would be an effective way to educate potential insureds about insurance and finance and identify multiple potential insured from a single program.
Family Feeling:
Family security, the birth of a newborn, a change in marital status, a new job, all these are the emotional states that motivate anyone to seek insurance.
Local Recommendation
For introduction, expand your identity among the villagers through the village president, ward chairperson, teachers, local businessmen. Since Nepali society is a positive-natured society that is always ready to get acquainted with strangers and reach out a helping hand after getting acquainted, you do not have to worry about how to make an identity in an unfamiliar place. It is enough to try to make an identity. If you are in a very new village area, try to understand the society of the village before you start introducing yourself as an agent there. Try to be present in the shop and listen to the villagers with curiosity, establish an identity.
Planned Journey:
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Before going out to meet potential people or people, get information about the time, place, distance, and available means of transportation and determine the appropriate route before leaving the house.
Simple Language:
Residents of rural areas do not understand the meaning of financial terms or insurance terms. For them, you should choose words and examples that are easy to explain.
build trust:
Insurance is a business of trust. You are encouraging the insured to seek insurance by selling your trust and the trust of the company you represent. Therefore, you should provide services to the insured continuously and honestly.
Annual Payment Method:
Clearly state the benefits of paying insurance premiums annually. Such as a way to avoid less hassle and hefty fines. Teach the insured with limited savings how to pay the insurance premium by making regular savings in savings groups or microfinances by withdrawing a lump sum annually. Teach how to open an account in microfinance or savings groups, teach how to save.
Special priority for post-harvest period:
Farmers have enough cash flow when they sell their crops to bring in money. In such a situation, it may be appropriate to motivate them to go for insurance. Similarly, in areas like Karnali Province, where herbs and apples are grown, it is better to encourage people to buy insurance during the time they sell their vegetables. For the far west, this could be an opportune time as there is a tendency to return home after earning money to celebrate festivals after working in India.
