Research On Management And Control For The Drain Of Insurance Agents

Since the insurance business resumed in China in the 1980's, insurance agents have become the leading force in boosting the growth of China's insurance market. The issue of the outflow of talent insurance agents that emerged in the 1990's has become increasingly acute, especially in the field of life insurance. The current sales strategy adopted by the insurance companies is what so called'the huge-crowd strategy'which refers to employing a large quantity of insurance agents to sell the insurance products. This strategy has been implemented for 17 years. Thus, the high rate of brain drain caused by extensive management has become a common problem in the whole industry, preventing the industry from sustainable development and waiting to be solved urgently by top management in the insurance companies. Consequently, it will be of great importance and realistic significance for insurance companies to control personnel turnover of agents, hence to reduce the high rate of brain drain.Guided by the theory of employee turnover and the model of employee leave, based on present insurance practice, through interviewing several administrative staff from three life insurance companies with different sizes and characteristics in Hunan Province and administering sample survey to more than 100 life insurance agents, this research adopts several research methods including questionnaire, sample analysis and the factor analysis and investigates the important factors leading to talent outflow in the four phases of current management in insurance companies, i.e. recruitment, payment system, promoting system and leave management.Finally, this essay draws two conclusions based on a combination using of qualitative and quantitative methods. Firstly, unsatisfactory payment has greatly contributed to brain drain in insurance companies. Secondly, the current promotion policies have failed to inspire the employees. To solve these problems, the essay further provides two suggestions on how to manage insurance agents effectively and control the personnel turnover: improving self-discipline system in the insurance industry and creating more favorable working conditions for insurance agents.