Only Option After Business Failure Is Insurance Companies?… 20,000 More Insurance Agents Added

Increase in Insurance Agents Amid COVID Recession
Expansion of Applications from New Insurance Agents

[Asia Economy Reporter Oh Hyung-gil] "Those who have temporarily closed their stores due to COVID-19 or are experiencing business difficulties, both beginners and experienced individuals are welcome. We will provide 50,000 KRW in transportation expenses to those who attend the interview."

The insurance industry has been fiercely competing to recruit insurance planners since the beginning of the year. Behind the enthusiasm for recruiting planners, including rookie training and various support funds, lies the recession. Due to the prolonged economic downturn caused by the COVID-19 pandemic, many individual business owners who failed in their ventures or self-employed people who closed their businesses have massively switched to becoming insurance planners.

According to the insurance industry on the 17th, the number of planners registered with the Life Insurance Association increased from 109,436 in January last year to 112,397 in November, an increase of about 3,000 over 10 months. This means that about 300 new planners registered every month.

The number of planners registered with the General Insurance Association reached 180,777 as of the end of the third quarter last year. It slightly increased from 175,032 in the first quarter to 176,493 in the second quarter, then surged by about 15,000 in the third quarter. The number of exclusive planners affiliated with general insurance companies also exceeded 100,000 for the first time in history as of the third quarter.

The qualification exam to become an insurance planner was once suspended in May last year due to the escalation of social distancing measures but has been ongoing since then. An official from the Insurance Association said, "Every time social distancing levels rise, there is discussion about whether to continue the qualification exam, but the industry's demand is to proceed with the exam," adding, "Considering the livelihood of those preparing to become planners, it is not easy to stop the exam."

It is considered unusual that the number of insurance planners has significantly increased despite expectations that face-to-face sales would decline due to the COVID-19 pandemic. The dominant analysis is that the needs of insurance companies seeking to hire planners and job seekers wanting to switch to planner roles have matched. Insurance companies have no choice but to secure planners during recessions because the influx of new planners leads to new contracts.

Insurance companies are reforming support plans for new planners or conducting large-scale recruitment activities. Hyundai Marine & Fire Insurance operates a commission system that provides settlement support, activity support, childcare support, congratulatory and condolence support, and incentives.

Prudential Life recently recruited the 14th class of SPAC, a sales expert training program, targeting graduates (or prospective graduates) of four-year universities. Orange Life also revamped its rookie settlement system, providing 1 million KRW to rookies in their first and second months regardless of performance, and during the rookie period, paying up to three times the achievement as recruitment commission based on performance grades.

However, from July, employment insurance will become mandatory for special-type workers such as insurance planners, which is likely to increase the cost burden of securing planners. An insurance industry official expressed concern, saying, "With the government setting the employment insurance rate at 1.4%, insurance companies also have to bear half of the insurance premium burden," adding, "They may have no choice but to separate sales organizations or restructure low performers."

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