Exclusive Non-Life Insurance Agents Surpass Life Insurance Agents... "Surpassing 100,000"

Phenomena Resulting from Contraction in the Life Insurance Industry

The insurance planner exam is being held on the 26th at the Myeongji College sports field in Seodaemun-gu, Seoul, to prevent the spread of the novel coronavirus infection (COVID-19). Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Ki Ha-young] The number of insurance planners affiliated with non-life insurance companies has surpassed 100,000 for the first time, exceeding the number of insurance planners affiliated with life insurance companies. The industry views this as a phenomenon resulting from the contraction of the life insurance sector.

According to the insurance industry on the 14th, as of the end of August this year, the number of exclusive insurance planners at non-life insurance companies was counted at 100,557. The number of exclusive insurance planners at non-life insurance companies increased from 84,005 at the end of 2014 to 94,995 at the end of last year, and exceeded 100,000 for the first time at the end of August this year.

On the other hand, the number of exclusive insurance planners at life insurance companies shrank from 124,595 in 2014 to 93,915 in the first half of this year. As of the end of last year, the scale of exclusive planners at non-life insurance companies surpassed that of life insurance companies.

The number of insurance planners at corporate insurance agencies (GA) handling both non-life and life insurance increased from 183,838 at the end of 2014 to 232,128 in the first half of this year. During this period, the total number of registered insurance planners increased from 393,073 to 424,767.

The industry analyzed that existing exclusive planners at life insurance companies are moving to non-life insurance companies and GAs. This outflow of exclusive planners from life insurance companies is pointed out as a phenomenon due to the contraction of the life insurance sector. In the past, insurance planners preferred life insurance companies because the commission per contract was higher, but in recent years, as life insurance growth has slowed, they have moved to non-life insurance companies or GAs handling both life and non-life insurance products, which have relatively better growth prospects.

According to a recent report titled "Status of Planner Retention Rates and Challenges for Insurance Companies" published by the Korea Insurance Research Institute, the growth rate of life insurance premiums recorded negative growth consecutively in 2017 and 2018. Especially in the individual insurance sector, excluding group and retirement pensions, there was a contraction for four consecutive years from 2016 to last year. In contrast, non-life insurance premiums grew annually by 3.1% to 5.3% from 2016 to 2019.

Since 2018, some non-life insurance companies have aggressively expanded their exclusive planners, which is also cited as a cause. Last year, as the job market tightened, the number of insurance planners increased overall, and the industry estimates that non-life insurance companies that actively expanded their planners absorbed a large number of new personnel.

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