[Becoming an Insurance Insider] Insurance Agents: What Happens When You Exclude 'Acquaintances and Clients' in Sales?

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[Asia Economy Reporter Oh Hyung-gil] It has been revealed that a significant portion of insurance contracts recruited by agents belonging to corporate insurance agencies (GA) were obtained through acquaintances or existing customers. This clearly shows the reality that domestic insurance sales still rely on 'acquaintance sales.'

According to a survey conducted by the Korea Insurance Agency Association from May 21 to 25 targeting 2,663 GA-affiliated agents, only 260 agents, or 9.9%, responded that their insurance recruitment route was 'new customer development.'

On the other hand, 1,272 agents (48.2%) answered 'acquaintances,' the highest number, and 761 agents (28.6%) responded 'existing customers.'

When recruiting 10 insurance contracts, 7 were recruited through people they know or existing customers.

Only 350 agents (13.3%) responded that they recruited through databases (DB) personally held by GA or individual agents.

In particular, a considerable number of young agents in their 20s relied on acquaintance insurance sales. Among 534 agents in their 20s, 325 agents (60.8%) chose 'acquaintances' as their recruitment route.

In contrast, among 151 agents in their 60s, 84 (55.6%) responded 'existing customers,' while only 20 (13.2%) answered 'acquaintances.'

Also, it was found that one out of two agents moved to GA because they could sell a variety of insurance products.

The reason for moving from insurance companies to GA was most frequently cited as 'being able to handle various products for consumers,' with 54.2%. The expected top reason, commissions and allowances, was the lowest at 13.6%.

16.4% answered that they moved because sales activities were freer compared to insurance companies.

The top priority when changing companies was a company with a good sales support system at 58.9%. Companies favoring top agents were the lowest at 4.1%.