Recently, with the news that a life insurance company was exposed to be defrauded of commission by marketing gangs, the phenomenon of "collecting Commission" once again aroused the attention of the industry. In fact, this phenomenon has always been a chronic disease of the industry, which has harmed both insurance enterprises and consumers.
The so-called "Commission collection" means that the employees of insurance enterprises complete the specified performance through fictitious manpower or false increase of staff, so as to defraud Commission rewards; After getting the Commission, the marketing group will surrender the insurance. Although it will lose part of the premium, the Commission and management reward can cover the loss, have a surplus and generate arbitrage space.
The most direct reason why we can successfully "collect" the Commission is that the Commission mechanism of insurance enterprises is not perfect. The commission payment law of medium and long-term delivery products of life insurance companies is "top high - middle low - back none", that is, it is very high in the first year and gradually decreases in the follow-up. This mechanism provides operating space for criminals to "collect commissions". Moreover, in recent years, the repeated prohibitions of "surrender of illegal products", "false increase of employees", "false business" and "insurance fraud" in the industry are also mostly related to the imperfect commission system.
From the perspective of operating efficiency, the above commission system also has many disadvantages. First, the fee difference benefit is squeezed. If the commission expense of insurance enterprises in the first year is large, it will lead to the loss of policy revenue and expenditure, which will need to "level" the expenses for several years. Once the renewal rate decreases, the fee creation ability of renewal premium will also decrease; Second, although the high commission in the first year is beneficial to the increase of staff and short-term retention rate, it is not conducive to the retention of marketers in the long run; Third, after receiving the first year's Commission, some marketers lose the motivation to serve customers for a long time; Fourth, the high commission in the first year is easy to mislead sales.
Although many senior executives of insurance companies also know the disadvantages of the current commission system, they are constrained by many factors, which is "hard to say".
Over the past few decades, life insurance companies have generally promoted premium growth through crowd tactics, boosting the industry into the fast lane, of which the commission system has made "great contributions". Chinese insurance marketers generally have no base salary, and commission is their main income. Therefore, it has become a powerful means to promote the growth of marketing team in the first year. On the contrary, it may cause a series of problems, such as the slowdown of premium growth and the loss of marketing team.
Based on this, it is suggested that supervision and insurance enterprises can work together from three aspects to eradicate the disadvantages of the mechanism.
First, it is suggested that the CBRC continue to promote the reform of the commission system and optimize the commission structure from the institutional level. In March last year, the China Banking and Insurance Regulatory Commission issued the letter on providing materials related to the commission system to clarify the reform direction of the commission system in the life insurance industry. In the future, the regulator is expected to launch a sustained and balanced reform plan for the commission system of insurance enterprises to promote the healthy development of the industry.
Second, while maintaining the growth rate of premium and the relative stability of the staff, insurance enterprises may wish to appropriately adjust the payment proportion of first year commission and renewal Commission. It is not only conducive to the stability of the marketing team, but also conducive to improving the long-term service ability of insurance enterprises.
Third, insurance enterprises need to further promote the reform of marketing team. At present, most of the salesmen have a loose sense of belonging to the insurance company, which is the first year of signing the contract with the salesmen. Therefore, strengthening the reform of marketing team is a prerequisite for commission reform.
Only with the concerted efforts of regulators and insurance companies can we prevent the repeated attack of the chronic disease of "Commission collection" and promote the sustainable and healthy development of the industry.
