Insurer Facing Manpower Drain Retaliates
Facing the problem of dwindling agent force, a major insurer has rolled out its own version of red carpet in a bid to stop the agent exodus and even recruit agents from other companies. This follows a previous article that highlighted this issue of agents jumping ship. According to The Straits Times, benefits include:
- – sign-on bonus of up to 135% of previous years income
- - Up to 125% of previous year’s income paid over 3 years
- - ‘Golden handcuffs’ of millions of dollars
- - $2000 referral fee for introducing new agents
- - $10,000 to agency manager if new agent stays and performs
Such high incentives come with stings attached – in the form of sales targets.
The issue of private bankers playing ‘musical chairs’ has been reported extensively in the media. Now, insurance advisers are also joining in. I have written about the issue of sales targets and other constrains money managers face in the article What Your Money Don’t Want You To Know.
With poaching spree taking place so extensively, consumers would probably be the one to loose out.
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Tags: Ethics, Mis-selling
