Insurance salesperson sales bonus

Looking at participating insurance from insurance cases

“Information asymmetry” brings many problems

Participating products originated in European and American countries and have been approved to enter the market since 2000 Our country’s insurance market immediately became popular as soon as it was introduced, and its sales proportion in life insurance products has been rising steadily. At present, participating insurance products account for more than 90% of life insurance premium income in our country’s market, occupying an absolute monopoly. However, in Europe and the United States, overall investment insurance products The proportion is only 30-40.

The reason for the popularity of participating insurance products is that from a supply-side perspective, my country's insurance companies have weak product research and development capabilities, and participating insurance is relatively simple in design. Therefore, each company mainly promotes participating insurance. , the insurance types sold in the market are similar, and even the "cloning" phenomenon of individual insurance types is serious. Insurance companies are busy over-exploiting and supplying, while the potential market demand for other insurances cannot be met; from the demand side, Chinese consumers do not have a strong insurance concept, and the concept of saving for retirement is widespread, and insurance products only focus on dividend income. There is no full confidence in the terms of the true safeguards.

The management of insurance companies is too extensive

In the current domestic life insurance business, bank insurance channels and agent (insurance salesperson) channels each account for half of the country, but insurance companies have little control over these two channels. The management is too extensive, and the overall quality of the insurance agent team is low. When marketing, they target older or lower-educated consumers. At the same time, in order to complete task assessments, they are eager to achieve success in sales, which inevitably leads to misleading behavior. Its irregular sales methods and consumers' weak product understanding ability will inevitably lead to conflicts; secondly, because most of the customers of bank branches mainly have financial management needs, they will inevitably focus on product returns. Insurance companies sell through bank channels. The product does not focus on dividend income, and customers will inevitably compare it with financial products or deposit interest rates of the same period. As a result, when dividends fail to reach the expected level, customers complain or even cry out that they were deceived.

In addition, Chinese consumers’ understanding of insurance is still at a relatively superficial level, lacking proper insurance knowledge and risk awareness. For example, many consumers believe that purchasing insurance products from bank branches is equivalent to deposits stored in the bank, and the income can only be higher than the market interest rate in the same period, but not lower. Consumers are not rational enough when purchasing insurance, and their insurance decisions are easily influenced by marketers. Because consumers have poor insurance concepts, they must fully listen to the marketing explanations given by marketers when purchasing insurance products. Therefore, when marketers engage in misleading behavior, consumers cannot make accurate judgments and disputes may arise afterwards.

Extended reading: How to buy insurance, which one is better, and step-by-step instructions to avoid these "pitfalls" of insurance