"Trend of Enlargement Intensifies"... Corporate Insurance Agencies (GA) Have Grown Larger

[Asia Economy Reporter Kim Jin-ho] Corporate insurance agencies (GA), which are insurance sales channels, are growing larger, with a particularly intensified trend toward large-scale operations.

According to the "2020 Management Performance of Medium and Large Corporate Insurance Agencies (GA)" announced by the Financial Supervisory Service on the 10th, the number of actual contracts by medium and large GAs last year was 14.85 million, an increase of 3.2% (460,000 contracts) compared to the previous year.

Contracts through large GAs accounted for 12.1 million, representing 81.5% of all contracts. By product type, non-life insurance products accounted for 13.29 million contracts, making up the majority (89.5%) of new contracts.

Last year, commission income for medium and large GAs was 7.1851 trillion KRW, an increase of 3.4% (233 billion KRW) compared to the previous year. Commission recoveries amounted to 494.5 billion KRW, increasing by 55.7 billion KRW from the previous year, and the recovery rate (ratio to commission income) worsened by 0.6 percentage points compared to the previous year.

The number of planners affiliated with GAs last year reached 411,221. Among them, planners affiliated with medium and large GAs numbered 190,028, an increase of 633 compared to the previous year. The number of large GAs increased by 4 to 61 compared to the end of the previous year. Conversely, the number of medium GAs decreased by 12 compared to the end of the previous year. A Financial Supervisory Service official analyzed, "The trend toward large-scale operations is intensifying."

Due to regulatory measures by financial authorities, the rate of incomplete sales by GAs is gradually decreasing. Last year, the incomplete sales rate for medium and large GAs improved by 0.04 percentage points (P) from the previous year to 0.09%. The contract retention rates at the 13th and 25th installments were 82.11% and 58.37%, respectively.

A Financial Supervisory Service official stated, "Last year, the GA industry’s business structure was reorganized centered on large GAs. While the quantitative growth of medium and large GAs continues, we will strengthen ongoing monitoring and inspections to prevent consumer rights violations."

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