The number of inexperienced new insurance planners with no insurance sales experience at corporate insurance agencies (GAs) is increasing. This is due to the economic downturn, which has pushed individuals to enhance their income through insurance sales, while also providing significant additional income under the guise of settlement support funds.
At A+ Asset, a major domestic GA, 250 inexperienced new planners are undergoing training this month alone. A+ Asset had set its goal for the intake of new planners' training at 200 this year, significantly surpassing the target. Last month, 140 new planners were also trained at A+ Asset.
A representative from A+ Asset noted, "When new planners come in, we conduct in-house training, and the lecture hall, which accommodates hundreds, was so full that even executives had no place to sit," adding, "I was surprised to see that most were inexperienced new planners."
In fact, the number of GA planners has increased over the past few years due to the ongoing economic downturn. According to statistics from the Korea Life and Non-Life Insurance Association, as of October last year, corporate GA planners numbered 281,202, which is an increase of 10,092 from 271,110 four months earlier in June of last year. Compared to December 2021, when the number was 243,744, and December 2022, when it recorded a similar level at 245,415, the growth is quite significant.
The reason inexperienced new planners are attracted to GAs is that they can earn income early on. Although the standards vary by GA, new planners can receive a certain amount of money under the titles of basic salary, incentives, and settlement support funds. Recently, some GAs provide a customer database (DB) to help inexperienced new planners, who do not have an initial customer base, to make sales more easily.
A planner from a large GA in the metropolitan area said, "New planners are like the 'lifeline' for insurance companies, so they are always recruiting, and recently, the number of applicants has increased," adding, "Unlike other industries, GAs encourage recruitment by offering money, so there is no better way to earn a living during tough economic times."
Until recently, insurance agencies preferred experienced planners. This is because they are skilled in sales methods and adapt quickly without needing additional training. However, the recent shift toward recruiting inexperienced new planners is attributed to the industry's efforts to avoid cutthroat competition among various GAs.
As competition for recruiting planners intensifies among GAs, expenditures such as settlement support funds increase, leading to severe losses and even conflicts. Instead of competing within the same industry, the idea is to recruit inexperienced planners and train them.
Additionally, there is a growing perception that large GAs can cultivate inexperienced planners through their own training. A representative from A+ Asset stated, "In fact, among the more than 5,000 planners who joined with no experience, there has been a case where one ranked second in overall sales," adding, "Having seen such cases, we have gained confidence in our training system, which also contributes to our preference for hiring inexperienced new planners."