The financial sector is accelerating its digital transformation. In the case of card companies, the number of card agents has drastically decreased as new card issuances through non-face-to-face methods have increased. In contrast, the number of insurance planners working for insurance companies has actually increased. The income per insurance planner has also risen. Insurance companies are actively pursuing digital transformation, so why has this happened?
According to the Korea Credit Finance Association, as of the end of last year, the number of card agents at eight dedicated card companies was 4,033, a decrease of 30.7% compared to the previous year (5,818). Since the beginning of this year, the number of planners, which had fallen below the 4,000 mark, was recorded at 3,766 at the end of last month. Compared to five years ago in 2019, when there were 11,382, this represents a decline of over 60%.
During the same period, the number of insurance planners actually increased. According to statistics from the Financial Supervisory Service, as of last year, the number of exclusive insurance planners was 651,256, an increase of 7.8% compared to the previous year (603,974). The retention rate of exclusive planners one year later was also recorded at 52.4%, an increase of 5.1 percentage points compared to 2023 (47.3%), and the income of individual planners has been growing for three consecutive years.
The difference in the digital transformation of the financial sector is due to the distinct characteristics of each product. Recently, as non-face-to-face promotions for cards have become possible, the necessity for card agents has diminished. In contrast, due to the complex structure of insurance products, insurance planners are still regarded as a field of expertise.
Managing card agents incurs significant expenses. With the reduction in card fees leading to a decrease in revenue ratios for merchants, the growth trend of card companies' core business in credit sales is gradually slowing, prompting them to first cut personnel expenses. According to the card industry, agents are estimated to incur about 400,000 won per person, including a commission of approximately 150,000 won from the card company for each issuance.
Recently, the trend is that consumers applying for and receiving cards through agents is rapidly declining. With the convenience of online issuance through card companies' own applications, consumers no longer find it necessary to seek out agents. Collaborating with simple payment services such as Naver Pay, Kakao Pay, and Toss, as well as card comparison recommendation services, there is a substantial influx of card issuance requests through these channels, leading to an even faster decrease in agents.
In contrast, digital transformation remains challenging for insurance products. Although online insurance products are increasing, insurance companies explain that revenue from face-to-face sales is still absolute. Particularly for life insurance products such as whole life insurance, which involve large premiums and long coverage periods, the importance of planners is even greater. Recently, Toss Insurance, a subsidiary of Toss, launched a program on the 21st to fully train new planners at no cost.
Additionally, the fact that the age group most interested in insurance is predominantly the 40s, who are accustomed to face-to-face sales, is also an important distinction. An official from the insurance company noted, "Unlike card issuance, insurance products are complex, and depending on the design, premiums and payouts can vary widely, so offline-centered sales can only be maintained. Moreover, especially as insurance planners gain experience, their networks grow, making work easier and increasing satisfaction with their income and professions."