An Empirical Study On The Factors Affecting The Income Of Personal Agents

In recent years,though China’s insurance industry has taken the initiative to carry out reforms and no longer pursues the rapid development of the industry,it has maintained a relatively fast development rate.In the past six years,the compound compound growth rate has reached 17.16% and the premium income is 3.8 trillion yuan.This rapid development of China’s insurance industry is attributed to the success of the agent system,and the high liquidity is the main problem that hinders the further development of the agent system.According to the insurance industry experience data,the results show that the agent’s shedding is mainly concentrated in the first year of the company’s admission.The turnover rate is as high as 80% of new agent in the first13 months.However,after about one year in the company,the turnover rate will be significantly reduced.The main reason for the decline is that the income is too low,so it is very meaningful to study the factors that affect the income of the new agent.Based on the review of past insurance theory and labor economics related compensation theory and literature,this paper first introduces the basic situation of X company’s individual insurance agent channel construction,and then based on labor economics related salary and income theory,makes a hypothetical discussion on the factors that may affect the income of agents,and starts from the micro perspective,based on the new agent data of X Insurance Zhejiang Branch.,because theincome of the new agent mainly comes from the commission income of the initial year after the contract is signed,so this article uses the average daily commission income of the new agent during the division(avgFYC)as the dependent variable,the influencing factors are classified into personal characteristic variables and working variables.According to the situation that the commission income of the newcomer is 0,the Tobit model is established for quantitative research and analysis,then the CLAD model is further analyzed because the assumption that the disturbance term does not conform to the normal distribution,and the conclusion is drawn.The results of this study show that,in individual characteristic variables,except age has a significant positive effect on the income of agents,but for example,gender,education does not have a significant impact on the income of agents.At the same time,most of the working variables such as the increase of members,the excellent customers and so on,all of them have a significant help for revenue enhancement.Finally,according to the research conclusion,this paper puts forward some reasonable suggestions to insurance,insurance company and insurance agent.