"Unable to Hire Even Through Open Recruitment..." Insurance Industry Faces 'Hiring Cliff' Amid COVID-19 Resurgence

Relief Over Extension of Social Distancing Level 2
Designer Qualification Exam Scheduled as Planned Next Month

[Asia Economy Reporter Oh Hyung-gil] The insurance industry is anxiously concerned about a potential shortage of insurance planners due to the resurgence of the novel coronavirus infection (COVID-19). Although the current social distancing level 2 has been extended, allowing scheduled exams to proceed, if the situation worsens, securing new personnel will inevitably face difficulties.

According to the insurance industry on the 28th, the Life and Non-life Insurance Associations have confirmed their plan to proceed with the insurance planner qualification exams scheduled for next month as planned. The government decided not to raise the social distancing level from 2 to 3 and will maintain the current level 2 for the next week.

Both associations plan to limit the number of examinees per test site to 50 or fewer in accordance with the level 2 implementation guidelines. The Korea Insurance Research Institute also announced that the insurance agency exam, held in six regions nationwide including Seoul and Busan on the 19th of next month, will proceed as scheduled.

A representative from the Life Insurance Association stated, "With the government extending social distancing level 2 by one week, there is no change to the planner exam schedule," adding, "To prevent further spread of COVID-19 and ensure the safety of examinees, those suspected of major symptoms such as fever, cough, or vomiting will not be allowed to take the exam, and masks must be worn inside the exam venues."

While the insurance industry has avoided the risk of exam suspension, the atmosphere remains cautious. Suspension of exams directly affects the recruitment of planners, which in turn determines sales capabilities, so insurance companies are closely monitoring the situation.

Earlier, during the initial spread of COVID-19 at the end of February, qualification exams were suspended but resumed at the end of April. During this period, the number of registered planners with the Life Insurance Association decreased from 109,731 in February to 108,977 in April, then increased to 111,151 in May.

Recruitment through open hiring by insurance companies has also been slow to open. Most insurers, including Samsung Life, Samsung Fire & Marine, Hanwha Life, Kyobo Life, and Hyundai Marine & Fire, have not set schedules for public recruitment in the second half of the year. DB Insurance is the only company accepting applications for open recruitment from next month 1st to October 6th, expecting to hire about 30 people, similar to last year’s scale.

Recently, Financial Services Commission Chairman Eun Sung-soo emphasized human investment in the financial industry and actively urged recruitment, prompting insurance companies to deliberate on when to resume hiring.

A representative from a life insurance company said, "We cannot avoid hiring new employees in the second half, but we are cautious because we do not know what unforeseen incidents might occur," adding, "We plan to decide on recruitment while monitoring the COVID-19 situation."

This content was produced with the assistance of AI translation services.