Life and health insurance policies are considered an investment in peace of mind, but not for insurance agents, some of whom consider selling insurance a nerve-racking job.
Dewi quit selling insurance in 2008 after two years because, according to her, the income was not worth the pressure.“The pressure is high because there are so many targets to meet. Either you become stressed out and quit, or you cheat,” the 53-year-old said.
For example, she added, some agents jacked up their own positions with help of their superiors. “This of course will eventually benefit the superiors,” she said, adding that some senior agents even credited junior agents for acquiring new clients, but took the commissions for themselves.
“An agents manager could earn up to Rp 100 million a month, while a junior agent only earns around Rp 1 million to 2 million,” she said. Similar to a multi-level marketing system, her former company used a layered hierarchy where senior agents received double compensation for doubling the pressure they placed on subordinate agents, she added.
Those who survive have to be persistent and sly because the shady business encourages an inhumane rivalry among agents and sales mangers, Dewi said. “There is one top agent in Lampung who views everyone as a potential client. She pitches her children’s teachers, and even leaves her children in the car during sales presentations, sometimes until 10 p.m.,” she said.
Dewi is now wary, and says she would not venture into a similar business again. “Nowadays, many Jakartans realize they need some form of health or life insurance. More and more people are looking for insurance.
“In this respect, being an agent is actually a good business,” she said, adding, however, that monthly insurance premiums are considerably high. “Very few people can afford to pay the monthly premium. That is why agents are constantly hunting for new clients,” she said.
According to Dewi, the cheapest monthly policy costs around Rp 600,000 at her former insurance company. “Many agents attempt to build their fortunes by first pursuing family members and friends, but they run out of client prospects by the end of the first year,” she said.
Many insurance firms offer alluring benefits for agents. “There are incentives such as free trips to Moscow and Beijing, or laptops for top agents,” she said. “They also provide training on methods of approaching people and convincing them to buy insurance, but it’s like a brainwashing session held every Monday morning,” Dewi said.
The training actually provides useful marketing instruction, she said, but added that some of the training is not free. “We were even required to pay for our agent licenses,” she said.
Another agent, who also works as a financial adviser for a life insurance subsidiary of a major Indonesian bank, said she earns around Rp 5 million a month, but never really knew where the firm’s profits went.
“It’s like a cash cow. I know the company profits from the hard work me and the other agents put in,” said the agent who refused to have her name published. “A financial adviser like me is under twice the pressure, answering to an assistant “up-line” sales manager and the bank’s branch manager,” she said.
A financial adviser is different from an insurance agent, she said. “An insurance agent only sells policies. They only hunt for new sales. A financial adviser also sells insurance policies and gathers clients, but is required to deal with claims and other administrative tasks related to client relations,” she said.
“At first I didn’t know what a financial adviser was or how to sell life insurance. The company put us in a one-month class to learn quickly about insurance marketing,” she said.
There were initially 50 people in her class, all of whom graduated, she said. However, only 15 have survived while the rest buckled under the pressure, she added.
There are at least five large insurance companies presently operating in Jakarta. (ipa)
Dewi quit selling insurance in 2008 after two years because, according to her, the income was not worth the pressure.“The pressure is high because there are so many targets to meet. Either you become stressed out and quit, or you cheat,” the 53-year-old said.
For example, she added, some agents jacked up their own positions with help of their superiors. “This of course will eventually benefit the superiors,” she said, adding that some senior agents even credited junior agents for acquiring new clients, but took the commissions for themselves.
“An agents manager could earn up to Rp 100 million a month, while a junior agent only earns around Rp 1 million to 2 million,” she said. Similar to a multi-level marketing system, her former company used a layered hierarchy where senior agents received double compensation for doubling the pressure they placed on subordinate agents, she added.
Those who survive have to be persistent and sly because the shady business encourages an inhumane rivalry among agents and sales mangers, Dewi said. “There is one top agent in Lampung who views everyone as a potential client. She pitches her children’s teachers, and even leaves her children in the car during sales presentations, sometimes until 10 p.m.,” she said.
Dewi is now wary, and says she would not venture into a similar business again. “Nowadays, many Jakartans realize they need some form of health or life insurance. More and more people are looking for insurance.
“In this respect, being an agent is actually a good business,” she said, adding, however, that monthly insurance premiums are considerably high. “Very few people can afford to pay the monthly premium. That is why agents are constantly hunting for new clients,” she said.
According to Dewi, the cheapest monthly policy costs around Rp 600,000 at her former insurance company. “Many agents attempt to build their fortunes by first pursuing family members and friends, but they run out of client prospects by the end of the first year,” she said.
Many insurance firms offer alluring benefits for agents. “There are incentives such as free trips to Moscow and Beijing, or laptops for top agents,” she said. “They also provide training on methods of approaching people and convincing them to buy insurance, but it’s like a brainwashing session held every Monday morning,” Dewi said.
The training actually provides useful marketing instruction, she said, but added that some of the training is not free. “We were even required to pay for our agent licenses,” she said.
Another agent, who also works as a financial adviser for a life insurance subsidiary of a major Indonesian bank, said she earns around Rp 5 million a month, but never really knew where the firm’s profits went.
“It’s like a cash cow. I know the company profits from the hard work me and the other agents put in,” said the agent who refused to have her name published. “A financial adviser like me is under twice the pressure, answering to an assistant “up-line” sales manager and the bank’s branch manager,” she said.
A financial adviser is different from an insurance agent, she said. “An insurance agent only sells policies. They only hunt for new sales. A financial adviser also sells insurance policies and gathers clients, but is required to deal with claims and other administrative tasks related to client relations,” she said.
“At first I didn’t know what a financial adviser was or how to sell life insurance. The company put us in a one-month class to learn quickly about insurance marketing,” she said.
There were initially 50 people in her class, all of whom graduated, she said. However, only 15 have survived while the rest buckled under the pressure, she added.
There are at least five large insurance companies presently operating in Jakarta. (ipa)
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