Hong Kong: Insurers offer top dollar to attract agents
High staff turnover is hitting insurers, with competitors offering millions of dollars in bonuses to poach top sales staff from other companies, reports the Standard newspaper.
An industry source said that about 100 agents left Manulife recently to join AIA Group. He cited a case in which a Manulife agent was initially offered a HK$1.5 million (US$192,500) bonus by AIA at the end of last year. After she declined the offer, AIA raised the carrot to HK$4 million.
Legislator, Mr Chan Kin-por, who represents the insurance sector, says that he has heard of some insurers offering up to HK$10 million in bonuses to lure agents. But he warned: "I have received complaints saying insurers require the agent to attain a certain sales target in three years, but might use an excuse to dismiss him near the end of the period."
The switch to another insurer means that agents who make the move may persuade customers to give up their existing policy and buy a new one from their new firm. Mr Chan warns policyholders to have a thorough understanding of terms and conditions before terminating their policies because they may not be able to transfer benefits from the old to the new. He especially reminds those who have taken out their policies for only one or two years that their benefits are very likely to be forfeited upon termination.
The Hong Kong Federation of Insurers says that it has a rule to guarantee the transfer of benefits from one policy to another. However, it is not necessary for every insurer to follow this regulation. Of 100 cases investigated in 2009, two of them involved breaches of this rule. Also, the federation is reminding policyholders to sign a client protection certificate to guarantee that benefits in the old policies are retained.
my comments:
in a report by the standard, hong kong's biggest circulation english daily, insurers are offering top dollar to attract agents.
sigh, is it any different here in our tiny red dot nation?
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