Majority of Life Insurance Planners Fail to Survive First Year in Business | Be Korea-savvy

Majority of Life Insurance Planners Fail to Survive First Year in Business

(Image: Korea Bizwire)

(Image: Korea Bizwire)

SEOUL, Dec. 9 (Korea Bizwire)Amid a prolonged COVID-19 crisis, close to 60 percent of insurance planners are failing to survive their first year in business, data showed Wednesday.

The life insurance planners hired by the nation’s 20 major life insurance companies showed an average registered settlement rate of 41.5 percent (based on the period from January to June) for their 13th month in business, according to the Financial Supervisory Service.

The registered settlement rate for the 13th month in business refers to the ratio of those who remain in business for more than one year. This figure indicates that the remaining 58.5 percent have already quit or have negligible sales performance.

The registered settlement rate of the financial planners employed by the nation’s 12 non-life insurance companies averaged 57.6 percent.

This figure is higher than that of life insurance planners, but still indicates that more than 40 percent have quit or have negligible sales.

The nation’s top three non-life insurance companies — Samsung Fire & Marine Insurance Co., Hyundai Marine & Fire Insurance Co. and DB Insurance Co. — recorded a higher rate of about 70 percent.

“There are many people who became insurance planners after losing their jobs due to the pandemic, but eventually quit due to sluggish sales performance,” an industry official said.

“Unlike in the past, professional financial planning capability has become important in the sale of insurance products.”

M. H. Lee (

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