In 2019, the joining of AIA became its agent, and the people who chose the AIA products were much more "visible to the naked eye" and even regarded as "explosive" growth.
In 2016, AIA started to increase its deployment. Now it benefits from a series of China's policy of opening to the outside world. It is worth mentioning that the development of the AIA insurance agents depends mainly on the long-term protection of the basic law, rather than the short-term cost incentive.
From the perspective of market feedback, the quality of AIA products is not an advantage, but its impact on high-end customers is not obvious.
No incentive from short-term expenses
The basic law of insurance companies is the basic standard for insurance companies to manage insurance agents, including daily management, income treatment, performance appraisal, welfare protection and business quality.
In the actual operation, some insurance companies mobilize the agent's subjective initiative, mostly relying on short-term cost incentive rather than the long-term protection of the basic law. In contrast, AIA is different.
The basic law of the AIA is dismantled, with a subsidy of up to $20 thousand per month for 18 months. According to the AIA agent, this is a responsible bonus and a certain commission standard is required. Specifically, in the first 3 months after entering the office, the Commission is 8000 yuan or more, the maximum subsidy is 10 thousand yuan; in 4-15 months, the Commission is 8000-16000 yuan, the maximum allowance is 10 thousand yuan, the Commission is 16000 yuan and above, the allowance is the highest 20 thousand yuan.
Will there be an agent leaving after 18 months' new allowance? Yes, there will be, but the retention rate of AIA will reach 50% after one year.
There are three main reasons for choosing to quit from the economic report reporters interviewed in twenty-first Century: first, they have high expectations for transformation, that is, the high expectation of transformation, the hard work of the insurance agents, the lack of awareness of the early start and the lack of long-term input, and the short term returns do not match expectations. Two, the family conditions are good, the resources of the clients are abundant, the money is not bad, the choice is mainly to pass the time, but because there are no firm goals and beliefs, there is no way to locate and make sense. The three is to buy insurance for themselves and their families, and join them, but after buying insurance for their family members and friends, they do not want to or can not do it.
"Good insurance agents will form long-term income protection, such as 5 years of long-term insurance, commission, increase management allowance and remuneration." An AIA insurance agent told the twenty-first Century business reporter.
In fact, AIA began to increase its deployment in 2016. Among them, the AIA basic law will increase the number of 2 members to 4. Each member of AIA has the right to increase his staff and has more rights after being promoted. However, if the increase of management level is higher than that of the referee, the referee will not be able to catch up with the parallel in half a year.
Since insurance companies can rely on long-term basic law to form a virtuous circle, why do they tend to make short-term decisions?
An insurance industry veteran told the twenty-first Century business reporter: "because a large proportion of the organization's interests in the basic law of insurance companies are to be given to directors and business managers, these people are mainly responsible for management functions and do not directly generate business, so the insurance companies have given the agents who directly produce business through the way of expenses. The short-term cost effectiveness is obvious, but many insurance policies may be self insured.
This person also said: "although the insurance company can form a virtuous circle of business through the basic law, the cost is higher and the adjustment is more complicated. For example, the company can easily adjust the bonus, and the basic salary and rank do not change. In addition, once the cost is released, not all headquarters can form effective control and control, because the budget patterns of different companies are different.
The head of an insurance company told reporters on twenty-first Century economic report: "some insurance companies have a short term of professional managers, and the cost is fast enough, so there is not much to consider in the long run. Short term cost can maintain the stability of the agent team, but we must consider the value of input-output ratio. If the short-term cost incentive is suspended or cancelled, the new low capacity manpower retained by the cost subsidy may fall off. There is no doubt about the cost allocation within a reasonable range, but the insurance company must recognize that the basic law is the key to the bigger, better and far away agents, and the basic law should keep pace with the times.
Liu Xinqi, chief analyst of the non banking financial industry of Guotai Junan, believes that the time span and intensity of short-term investment are both uncertain and the incentives for agents are accidental. The short-term cost drivers are mainly primary agents and supervisors, and the remuneration level of senior agents is generally high, and the attractiveness of one-time cost incentive is relatively weak. In the long run, life insurance companies should upgrade the basic law and improve the overall interests of agents through improving the interests of the basic law and incorporating some one-time incentives into the basic law. The direction of the revision of the basic law should mainly focus on encouraging high-quality staff members, enhancing the interests of newcomers, and strengthening executive incentives.
Middle and high-end customers are not sensitive to price.
Many colleagues mentioned that the training of AIA agents was well done. At present, AIA has a new class of about 200 people per week, with a training period of 20 days.
An AIA insurance agent described the twenty-first Century economic news reporter: "it is shocking to those who have been transformed from loose organization. In the training process, we must be strict in discipline and can not look at mobile phones.
Another AIA insurance agent told the twenty-first Century business reporter: "training does not talk about specific products in the first week, but from the risk management theory, the undergraduate insurance risk management course is completed within a week, the content is basically not dropping, the curriculum density is large, and even more vivid than in the school.
However, judging from the current market feedback, AIA's product price is not excellent. AIA insiders believe: "at present, many small and medium insurance companies have good product terms and low pricing, but pricing must have a scientific actuarial basis, taking into account a complete risk cycle."
The new business value is the profit of the new life insurance policy, and it is the core index to weigh the profitability and growth of the life insurance company. From this indicator, since 2015, the value of AIA's new business has increased year by year, and has remained above 50%. The value of new business in mainland China has been above 80%, and has exceeded 90% since 2018.
Since the product price of AIA is not excellent, why do consumers choose it more? In twenty-first Century, the business reporter interviewed two policyholders of AIA insurance products, one worked in Vc firms, another was a media practitioner, and two people compared the products of other insurance companies. "Just around friends who act as an agent of AIA, feel that they are more professional when they come into contact with them, and the price fluctuate within acceptable limits.
An insurance company official told the economic news reporters in twenty-first Century: "the agents of AIA can cover the high-end customers. This is their advantage."
An AIA insurance agent told the twenty-first Century economic news reporter: "we target the middle and high end customers, one is from the incremental market, that is, China's growing middle class; the two is from the stock market; these people buy financial insurance products in part, and the demand for protection has not yet been met. The other part of the investment is mainly considering banks, P2P and other channels. With the coming of the negative interest rate era, we will consider switching to insurance products."
China's policy of opening to the outside world has also promoted the development of AIA in China. In December 26, 2019, AIA announced that it would convert the AIA Shanghai branch into a wholly owned life insurance subsidiary of AIA. Once approved, it means that AIA has an independent legal person qualification in China, and the bottleneck that will hover its branches for many years will be solved.
Insiders analyzed the twenty-first Century economic report reporters, and the opening of the AIA branch in the future will mainly be concentrated in large and medium-sized cities. This means that its competition with Chinese insurance companies is mainly concentrated in the high-end customers in large and medium-sized cities.