There Are 620,000 Insurance Agents Nationwide... Incomplete Insurance Sales Have Decreased

Source: Financial Supervisory Service

[Asia Economy Reporter Changhwan Lee] As of the end of last year, the number of insurance planners nationwide reached 620,000. The implementation of the Financial Consumer Protection Act (FCPA) and the inquiry of recruitment personnel information have continuously reduced the rate of incomplete insurance sales.

According to the report "Analysis and Implications of Insurance Sales Status by Recruitment Channel over the Past 5 Years" released by the Financial Supervisory Service on the 24th, the total number of insurance planners authorized to recruit insurance as of the end of last year was 624,883, an increase of 1.8% compared to 2017.

Over the past five years, planners affiliated with GA (General Agency) increased by 13.7%, while exclusive planners of insurance companies decreased by 8.8%. This is mainly due to the recruitment of planners by large GAs (with 500 or more planners) and the separation of sales subsidiaries from insurance companies.

Looking at sales performance by channel, life insurance is mainly sold face-to-face (85.7%), and although CM (Cyber Marketing) sales centered on mini-insurance and others are increasing, it is still at an insufficient level (3%).

TM (Telemarketing) sales (11.3% of new contracts in 2021) decreased by about 20% compared to 2017, with a particularly large decline in TM sales by GA and home shopping (TM) sales.

In the case of non-life insurance, the proportion of face-to-face sales was 65.7%, lower than that of life insurance. However, the proportion of non-face-to-face sales is increasing, especially for products with simple and standardized structures. In particular, CM, where consumers actively seek and subscribe, rose sharply (69.6%).

Source: Financial Supervisory Service

The rate of incomplete sales is showing significant improvement.

In the case of life insurance companies, the incomplete sales rate decreased evenly across all channels except for individual agencies. Especially notable is the decrease in the incomplete sales rate in the GA channel (down 0.41 percentage points), and the incomplete sales rates for variable insurance and whole life insurance also significantly declined.

Non-life insurance also saw a consistent decrease in the incomplete sales rate across all channels over the past five years.

Source: Financial Supervisory Service

An official from the Financial Supervisory Service stated, "The implementation of the FCPA, strengthened internal controls and disclosures within GAs, and the introduction of recruitment personnel information inquiries are gradually improving sales practices in the insurance market," adding, "The continuous decrease in the incomplete sales rate and the overall increase in insurance contract retention rates are positive signs."

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