Number of insurance planners declining

The number of insurance planners is declining due to the prolonged economic slowdown. Insurers are also shutting down branches because more customers now prefer non-face-to-face services via online and mobile channels.

Planners are also moving to general agencies with a more casual atmosphere that also pay higher salaries.

A general agency is an independent firm or contractor working for an insurance company, whose main function is to sell one or more insurance products to select insurance brokers. Brokers then sell the policies to their clients.

Concerns are mounting among insurers that planners’ exit could deal a blow to their earnings since they are still the core of their sales operations.

The Korea Life Insurance Association said the number of planners attached to life insurance companies was 99,886 as of the end of October, down nearly 10,000 from the previous year.

The number of life insurance company planners peaked at 157,000 in 2012, and has since declined to 140,000 in 2013 and 110,000 in 2017.

Non-life insurance planners have been in decline as well. The figure was 93,000 in 2013, 84,000 in 2014 and 81,000 in 2017.

Reflecting an increasing number of sales are now dependent on non-face-to-face sectors, insurers are shutting down branches.

The number of life insurers’ branches was 3,375 as of the end of June 2018, down 312 from 2017. It is also down more than 1,000 from the 2013 figure.

“I used to be a life planner attached to an insurance company, but decided to quit a year ago,” said a general agency planner surnamed Song.

“They were losing business so couldn’t raise planners’ salaries. General agencies, however, guarantee higher incentives. If you are good, you make more money here.”

According to the Insurance Agency Association, the nation’s insurance companies shed nearly 14,000 planners for three years since 2015. General agencies added 19,000 planners during the period.