``We are holding discussions with insurance companies and a decision in thisregard is expected by this month-end,'' he said at a function organised bythe National Stock Exchange (NSE) and Insurance Institute of India (III) todistribute certificates to the newly trained agents.

As per current norms, both life and non-life insurance companies have bothmandatory and non-mandatory category of investment in wide ranginginstruments, including government securities and infrastructure bonds.Referring to the significance of intermediaries, Mr Rangachary said, ``Thereis a need to exclude insurance agents from the current management mantra ofdisintermediation.'' Agents play an important role in furthering thedevelopment of the insurance sector, he said. ``Nearly 80-85 per cent of theinsurance business in the world, particularly in life insurance, is sold bypersonal contacts established by individual agents,'' Mr Rangachari added.

However, he cautioned that one wrong move by an agent may create problemsfor the insurer and the insured and that was where training comes inhandy.

On pending applications, the chairman said there were about four to fivesuch applications, including that of Sahara for life insurance. MrRangachary said about 75-80 products from non-life sectors were filed withthe Irda.

Referring to the life insurance sector's growth prospect, he said, over thenext five years the policies issued would see a rise of 20-25 per cent(compounded average).

Life Insurance Corporation chairman and managing director GN Bajpai who waselected NSE chairman on Monday, said, distribution channels need to befurther expanded. Such channels, with more information, would add value andhelp in the growth of the insurance industry, he added. III deputy chairmanMG Diwan said, in order to select insurance agents, the institute hadconducted a manual test of over 17,000 candidates with a success rate of 66per cent.