Shin Chang-jae, the CEO and Chairman of Kyobo Life Insurance, stated, “Many insurance companies have overlooked post-sale support for their clients while focusing on excessive commission incentives and aggressive hiring of insurance agents to increase new policy sales. Consequently, customers have suffered the most from flawed selling methods.”
Shin spoke during Kyobo Life Insurance’s 68th-anniversary event on the 7th, highlighting that for the company to remain operational for a century, achieving ‘full coverage completion’ for clients is more important than just boosting insurance sales.
In recent times, the insurance sector has experienced increased competition from GA (corporate insurance agencies), resulting in higher operational costs including sales commissions and growing worries about financial stability. This situation has also led to problems such as customers being urged to change policies without valid reasons or finding themselves without a dedicated manager following their purchase.
Shin said, “Field sales managers should regularly seek out and develop ‘farmer-type’ planners who handle policies until customers get insurance payments because of illness or accidents, instead of ‘hunter-type’ planners who only focus on getting new contracts.” He also mentioned the financial regulators’ recent commission cap and phased payment systems, saying, “This could be a key chance to fix the short-term performance-focused bad habits and bring the life insurance industry—now turned into a ‘money game’—back to its original goal of being a ‘story of neighborly love.’”
Authorities have imposed restrictions on GA, limiting recruitment commissions to 12 times the customer’s monthly premium in the initial policy year, starting from last month. Beginning next year, they plan to introduce a system that spreads sales commissions throughout the policy term instead of paying them all at once.
jasdooit 
Leave a comment