Hi all.

I ahave always wonder about this profession.

I smell the passion, the hunger, the always-wanting-to-meet-new-people field of work.

Question is,

How does one become an insurance agent?


Let's discuss

First, identify which insurance company you want to become an agent for, then approach them. They should point you in the right direction, some companies have different procedures but basically you will need to go for an exam at MII.

What does an insurance agent do ?

How did they get paid ? Is it a commission-based job or does it comes with basic salary ?

Sell insurance, and all depends on commission. No basic. You're on your own to determine your own income.

Can one go do sales, without being in a particular agency?

Another option is a call center insurance agent. No need to travel to meet customer, have basic salary, no face to face with customer etc.
But work environment could be boring, every day sit and call people.

meet potential customer
hit target every month
enjoy free holidays if hit target
build your team
"encouraged" to get a vios to boost up your effort to pay installment by working harder

sama like MLM.. the harder you work, the more you earn..

That's hard.

If you can hit the sales, you are easy.

From my knowledge, commission-based jobs are more lucrative. But you must have wide range of contact networks.

Are you an insurance agent ?

It is a commission-based job. The good thing with this job is that your working time will be very flexible.

If you're hardworking = successful.

no, im not
but i noe a fren start with cold market and his income is really

You're right. Very loaded. Haha.

I understand everything now.

Its similar to a real estate agent.

The commission they receive is just 'wow' !

Choose a company , take the exam, sell !

What you need is leverage

How is the commission calculated?

-

This post has been edited by UnknownDave: Mar 19 2015, 12:22 PM

As Insurance Agent, you need to treat it as a own business. You work for yourself. Mean must have self discipline and self motivation.

So to build up a business, it take time. Same to insurance, you need to build relationship, trust, and experience.

Is not a easy to be successful but the reward are good in long run.

Which is better;

To go out alone,
Or to join a team/agency/company

to do insurance sales?

it's 25% generally across the board, but if you hit certain level you are entitled to 40% of the premium paid.

for example, if you get one to pay for 3k per year per annum, so your commission is 750. (for up to six years, I think) and that's only from 1 client. if you have 50 or 100 clients? imagine your pipeline income, it is very lucrative, but not easy to do.

who doesnt try to be nice to everybody relatively in sales line? people dont just give up their money to you for free, so work the effort.
ive been working in sales line with promising 3k+ monthly but working in a 'China-man' company really kills you, could turn u into a zombie

Basically, you will need to choose an insurance company to attach to. They will guide you to obtain your license (through exams). 3 types of basic exams to take, in order to sell both general and life insurance. At least 2 exams, if you are to sell only general or life insurance.

Life insurance commission higher if not mistaken, and you need to hardworking to keep finding prospects. Who is going to buy multiple medical card policy? General insurance includes fire, PA, car, etc. Life insurance will ensure recurring income, as the policy holder is paying for the policy, you get your recurring commission (reducing by year).

You will have a minimum target (xx policies in xx months) in order to keep your license active. This is to make sure you are still alive in this line. If you are working this full time, you can try to achieve their top sales. That will allow you to travel around the world. Multiple trips in every year for top achievers. For newbies, for seniors, all are entitled as long as you achieve target.

Not a bad choice either, as stated above on the 750 x 50-100 clients example. You just need to work hard.

Many thanks for the insightful reply.

So the commission is only paid if the client has paid for a year?
Or right at the moment he signs up for the policy, you are paid 25%?

As far as I know, it is 50% commission of the insurance premium for life insurance. Because insurance selling is so competitive, I told my insurance agent that I will buy a life insurance from him if he would split that 50% commission with me. Of the 2 different life insurance agents I dealt with, they agree to split their commission evenly with me, so in the end I pay only 75% of the insurance premium for the first year. (the other 25% of the insurance premium is paid by the insurance agent per the commission splitting agreement). This is only for the first year, second year onwards, I would pay 100% of the insurance premium.

Say, I clinch a deal, selling LI at RM2.4k/annum.
Premium is paid monthly, at RM200/month.

Will I get the 25% commission straight away,
or will only receive it after a year?

Every month RM200x25%.

This is singapore commission, for Malaysia is far lesser for the first year premium.

Yes, those are the commision rates for Singapore. I was thinking Malaysians' rates should be close. Oh, it is not

Great Eastern life insurance commission?

But life as insurance agent seems tough as 65% of insurance agents earn below RM20,000 a year?

The first thing is the face skin must be 1 inch thick...

Malaysia's commission rate is steady decrease unlike Singapore. This is to maintain a healthy Persistency Ratio in the market. FYI, if first year premium is too high and significantly drop after 1st year, the agent will "lose motivation" to service the customer after the 1st year.

Yeah of course, because in insurance industry, about 60% are parttimer or no-timer. They don't bother to do the sales and every year about 15% of manpower being terminated.

If you look closely in Great Eastern's commission payout in year 2010.
Source: Bank Negara Malaysia. http://www.bnm.gov.my/files/publication/dgi/en/2011/L2.pdf

GE has paid out nearly 700millions of commission and we are having 16,000 agents and about 15% of agent are not doing any sales at all.

We can neglect 15% of the agent who are not doing any business at all(waiting to be terminated).
By simple mathematics, every agent averagely earning, 700,000,000/13,600(active agent)=RM51,470/year = RM4,289/month.

This is nothing to boost about it as RM4k+ can be easily reach by any average Kuala Lumpur executive who has been working for about 5 years in MNC.

However, we have to do a little mathematic to show real fulltimer's income as there are only about 30-40% of insurance agent are full timer.

I have no database to show the percentage of full timer's earn. However, as far as I know, a manager averagely earn RM15,000 and a Group manager averagely earn RM30,000.

A good insurance agent would want to sell personal accident insurance as well as travel insurance (for vacation/holidays) in addition to the life insurance to his/her customers. It is not just sell one life insurance, done deal, after 5 years, no more profit. Apart from selling personal accident and travel insurance to the customer, he has opportunites when the customer gets married, the spouse will maybe buy life insurance or when the customer has new borns, the customer will buy more insurance. I can see why a part timer gets demotivated because of his/her lack of time to build relationships for business opportunities.


Those figures are good to know. RM4300/month is decent pay and the best part is the insurance agent has complete control on his work hours. The manager pay of RM15,000 a month is impressive. Worth venturing into if one is good in sales.

You must ask Lowyat Insurance Grand Master roystevenung for advice.

In Insurance as in all sales job, the SKY is the Limit. Successful agents I heard make RM6 digit a month.

Most of the agent do not provide PA and Travel insurance due to low commission. A travel insurance premium is about RM50-100(depending on the destination, days and coverage). Travel insurance commission is 10%, so per case earning about RM5-10, minus out the time, petrol and other expenses etc, you might making a lost. Unless it's for bulk or for the purpose of building relationship as per what you said.

A mediocre first year agent in my group is earning about RM2k to RM4k/month, not a high flyer, they can't afford Merc yet, but enough to sustain their lifestyle. However, my agents who has been working with me for several years tend to have >10k/month.

Then what is the commission rate for Malaysia?

welcome to PM me if u are interested to become an insurance agent..Thank you..

If you commit to your goal and do your daily work, it is common for insurance agent to earn more than 10k/mth in less than 3 years.

My 2 cents. Not every1 can sell insurance If you have no education or degree, or no other means of employment, then by all means, please do so. The problem is many young ppl nowadays come out of uni, and think about earning big bucks, and then they hear about insurance and real estate and think wow I want to earn 20 k a month also. I see so many young girls being brainwashed by their teams and come out in short skirts and trying to sell.

You will lose some of your friends as well as everyone is damn scared of the insurance guy/girl calling and bombing them with all kinds of reasons to buy...need to hit their quota, they need your help, family member sick need to hit commission all..

Try and work and get a real job...this isn't for everyone as it requires a 3 inch think face, the ability to take lots of rejection, insane amount of fake optimism, and really the ability to sell sex also

Sound like speak from experience
I'm not sure which agency/insurance company you went but it sounds sad.

Ive been approached by countless female agents which will would include their body in the package they are selling you. You just need to ask the right questions, for example "why should I buy from you, there are so many other agents out there". They all come from different company. Its very easy to tell the difference between these kind of agents, and the more "legit" type after meeting a few of them.

Actually I'm curious why would someone sell their body for sales, it's not that insurance commission is so lucrative. Unless you are buying with premium up to twenty thousand. If for the mere few thousand premium, I don't see the reason, they can earn more by directly become prostitute...

No doubt they can earn more if they become a prostitute. But as prostitute, they need to service all walks of life, including the undesirable ones, not unless she is a "high class" prostitute calling her own shots with the right to reject customers.

An insurance agent desperate to meet sales target for a particular month/period would not mind providing the special service if:

- that particular insurance deal is make or break. if the customer signs on, she meet sales target. if customer does not sign, she does not meet sales target
- the customer is someone decent and clean, good looking, someone she would have a one night stand with, even if it is not relating to an insurance deal
- the customer is buying a decent coverage with potential for more business in the future

But again, I must say this is not common and only a desperate insurance agent would agree to such requests.

We are talking about between 2-4k min per month deals yo which is 1 year 24k minimum ? If i not mistaken, investment plans commision is about 25% 1st year ? Forgot the numbers for this d.
You can get the younger or junior ones quite easily for a much lower cost
Common la, easy logic. Girl need money to buy their LV/Prada, eat good food, drive big car, or worse cannot hit quota. They are desperate to be in the luxury line, shame to be poor. You be the Alpha male in the conversation, if she needs it, she will swing your way What other awnser she can give you when you ask her "Why should I buy from you? All agent promise same thing"

Dont need PM geh, got Mount Kiara or Dutamas pup area, leave your car key on the table and start fishing. They do hang out there to prey on man. Was approach several times that way.

You can search for HLA legendary fubu, Christine if i recall name correctly, late 30's , drive a white CLK. She only deals with the rich and is very easy to get under her skirt. She is married by the way.



This post has been edited by Azurika: Nov 29 2013, 01:50 PM

Insurance is a long term commitment, what if the client refuse to pay after 2nd month? She needs to "service" every month? What if got 100 clients doing that? Unless s*x is her hobby, else I think she rather live a mediocre life Not to mention some disease have to take into account as well.

Without a proper education given to the client about the importance of insurance, client will tend to lapse the policy as he sees no point to continue it or he sees the "advantage" has over. (unless continuity of "service" is given)

My car key attract only ikan bilis Oh, go clubbing also got a lot of girl give free service without any charges. I think if there is such agent exist, they treated s*x as their hobby like those SYT(Sweet Young Thing) in clubbing. It's like a win-win situation for them.

I have once asked a client of mine which is a "small boss" the reason he bought from me but not those SYT. He told me that insurance is a long term commitment, and when shits happen, he want a reliable person to help him instead of these SYT. If he really want s*x, he can afford to pay for it.

I would estimate that only about 20% of agents do well enough to call it a career. The others either don't make anything, barely anything at all or only make enough as a side income. So those who do well could be making RM8000/month or more. This 20/80 ratio is common believe in sales line.

This post has been edited by JohnL77: Nov 29 2013, 02:39 PM

Hmm.....
80% x 700,000,000 = RM560,000,000
20% x 16,000 = 3,200

RM560,000,000/3,200 = RM175,000/year. Sounds logic

Haha, it's just an estimate that some sales people like to quote.

It's 20/80 and then 20/80 again. The top 20% make most of the money, and the top 20% of that 20% make the most.

80% x 560,000,000 = 448,000,000
448,000,000/640 = 700,000/year.

The other 80% of of the top 20% make

112,000,000/2560 = 43560/year.

From my experience in the industry, that looks like a good estimate. I said the top 20% make enough to call it a career, that means enough to survive.

OP, if you want to read horror story about insurance industry go here:

https://forum.lowyat.net/index.php?showtopic=1997916&hl=

and here

https://forum.lowyat.net/index.php?showtopic=2114919&hl=

The skill to spread your legs , troll lol lol lol lol



Hmm, 20% is a high margine. Doing it full time and surviving i believe is way lower then that.

Hahaha, once join will know. Go see client dress like from call girl agency, haha.


That's my point, most of the people doing insurance are doing badly. Those who can survive, make 2000-5000 and drive wira. I don't think it is impossible Michael Tan makes 700,000 a year, maybe even more.

Proof that the 20/80 and further 20/80 estimate is not far from the truth.

This post has been edited by JohnL77: Nov 29 2013, 03:55 PM

If you got the money, every year when time to pay premiums, you can ask her "why should I pay?" Hahaha.

ExpZero suggested a very good technique. Sleep with the agent, buy the policy, within the trial period, cancel the policy and get back your money.

Do you know how bullshit the "investment" they want you to buy is? Do you know the way they sell it to you is unethical and you can complain to Bank Negara? They like to sell endowment policies as "savings plan" because most people when hear "insurance" will run away. They show you beat around the bush method of calculating return and tell you crazy return percentages but if you actually look at the plan, you will know the return is very low only.

When they look at you, they only see commission and hitting target. When they hit target, they get to go for luxurious PAID FOR vacations. You want to fund their vacation and BMW monthly installment, be my guess.

Disclaimer: Not saying all agents are like that. But next time you meet a "financial planner", check their name on CFP or RFP website. Wrongly using the title "financial planner" is illegal and you can complain to Bank Negara. If you hear them introduce themselves as "Wealth Advisor" you know is bullshit already. Run away.

The industry is upside down. You want to sell endowment policy with fat commission, you only need to take exam as easy as undang2 exam for driving license. Just memorize the past question and answers can pass already. For this exam, you don't have to learn anything about finance or contracts.

You want to gain the knowledge to fully analyze your client's financials and advice accordingly, you need to sit for more exams. But then what will you do? Charge professional fee? Why not just sell them endowment with fat commission? So far I haven't met any fee only financial planner in Malaysia except for that guy who writes for The Star.

Financial Planner shouldn't be like that. The problem is they misuse the title.

You want to make it big really fast, just kill your conscience and change your phone number every few years so your cheated customers cannot call you. Any problem let customer service department deal with it.



This post has been edited by JohnL77: Nov 29 2013, 11:05 PM

Cool down John, I understand your frustration in OTS.

I do see a very healthy competition in between Great Eastern, Prudential and AIA. That kind of business model/strategic you mentioned are not long lasting as the client did not understand the real objective of getting insured and tend to lapse after several months/years.

PS:


Rest assure xinken, there are always bad apple in every industry, just that how you look at them.

Recent, there are also Doctor who punished for having sex with clients, http://www.abc.net.au/news/2013-11-28/doct...edicare/5122894. Canberra doctor had sex with clients during consultation, http://www.canberratimes.com.au/act-news/c...1128-2yc7z.html or Thailand stewardess and pilot performing sex in plane and prosecuted when the image leaked. If you still remember, 2 years back leaked the Korean model sex scandal where it involved with a lot of high profile actress/singer. But that doesn't mean that every of the doctor/stewardess/pilot/actress are doing that on operation/consultation/flight. Even you are not sure your boss relationship with your female colleague which are promoting in a very fast pace There are always bad apple in each industry and it depends on how you look at it, the most important is you are not the bad apple.

Insurance agent is only a job, a career, a business. It depends on how you treat your own career. There are several ways to manage it including ordinary personal insurance, retirement planning, business insurance, will writing, income replacement, employee benefit etc...

Hahaha, I know you didn't suggest that, but it is because of what you said that inspired me to think up that idea.

I've seen some some agents here who might be ethical (Including you?). Need to keep track of you guys in case anything happen to my father's friend (he's one of the more ethical ones).

Luckily CFP website got list of certified members. So please please please anyone reading this, use that website to check the next time you meet a "financial planner".

Moral of the story, don't follow OTS.

This post has been edited by JohnL77: Nov 29 2013, 08:13 PM

What's OTS ?

Try reading this: https://forum.lowyat.net/index.php?showtopi...7916&hl=johnl77

This: https://forum.lowyat.net/index.php?showtopic=2114919&hl=ots

Their website: http://www.ots.com.my/index.htm

MLM boss:


They like to show off their car with 126 number plate:


Basically it's a group of HLA agents all under Michael Tan, and his brothers Alex and Desmond.

This post has been edited by JohnL77: Nov 29 2013, 10:49 PM

Aha, the infamous group! Now i know!

Janji dicapati, haha good one.

All those fancy cars.. with 3 digits number plates..

If you drive Proton they won't let you buy 126 number plate. But who's going to stop you? Would like to see someone drive cheap car with 126 number plate park beside them.

This post has been edited by JohnL77: Nov 30 2013, 03:16 PM

Especially if the person you married is an insurance agent.....

My Gf gonna join insurance agent, Habis loh

This is my estimate of how much insurance agents make based on the total commission paid out by GE in 2010 (RM700,000,000) figure provided by ExpZero. http://www.bnm.gov.my/files/publication/dgi/en/2011/L2.pdf
As you can see from this report by The Star - http://www.thestar.com.my/story.aspx?file=...tion%2f11929562 , my estimate is not far from the truth. The point is, majority of agents don't make enough to survive or don't make anything at all.

At first ExpZero laughed when I told her about the 20/80 and further 20/80 ratio, but after I showed her this calculation, she didn't have anything to say. This 20/80 estimate is common in sales line where you only earn commission, no basic.

But chill la, girls have secret weapon, hahaha.

This post has been edited by JohnL77: Nov 30 2013, 05:45 PM

I didn't laugh at your 80:20 statement by the way. Did I?

Well, if I'm still remember, I agreed with the 80:20 ratio thingy. This is the ratio in life even when I were working in a corporate, all the SMT got 80% of the total salary whereas we as executive only got 2k+-3k salary

Life is about how you going to become the 20% but not condemn about why I'm not in the 20%. This is not applicable in life insurance business only, but in every aspect including how you manage your own life in corporate world. I've seen my ex-colleague keep on complaining the boss for not promoting him but in fact he doesn't know his current capability and the reason the boss promote another colleague of mine. Some of my friends condemn about why they do not have gf but didn't manage themselves to a better state.

A lot of agent are having less than RM500/month commission, yes, five hundred per month not thousand, why is it that? Well, a lot of new agent will lose motivation after rejected by their prospect only after a few times. So, by selling a few policies and able to maintain about RM500/month, isn't it is better than work as part time food promoter in Tesco?

My own group's retention rate is about 40%, so it's not an easy industry. However, if you able to strive hard for your goal by giving awareness to the public about the importance of insurance, give them the real reason of owning an insurance policy, after 2-3 years, you are most probably can earn about RM5-10k.

In the end, it's all about yourself toward your life, if you are good in IT, go ahead and workout a new software, if you are having a good your physical figure, go ahead and work as actress/model, if you are rich, go ahead and venture into a new business. But if you are non of them, at least this industry is a good platform to help you to earn a little fortune at your own hardwork. This is not a magic industry.

Oh, I must have misunderstood you.

Yes yes, my calculation did show that the top 4% earn close to or more than a million a year.

Not complaining at all actually.

Yes, the 20/80 ratio can apply elsewhere too, especially now when it is believed that the top 1% of the world control what, 30-40% of the world's wealth?

Comparatively fields in which the majority of the workforce earn an average of 2000-5000 a month, the top 20% would be earning a gross amount of money.

Meanwhile in insurance, majority of people earn less than 1700 a month.

Just something to think about.

This post has been edited by JohnL77: Dec 1 2013, 01:05 AM

JohnL77,

But, on the other hand, is it that hard to be GOOD insurance agent??

1) How many insurance agents that you know directly and indirectly actually know their product well enough to sell the RIGHT product??

2) How many insurance agents actually check your finance to make sure that you have enough savings before buying insurance??

The competition is not as tough as you think. Most insurance agents only interested in selling as opposed to solving the client's problem.

It is VERY SIMPLE.

Cream raises to the top. People that are willing to put in the EFFORT to be the best in their area will do well. Meanwhile, the rest will whine why they are not doing well.

A simple survey around lowyat forum will tell you that there are not many insurance agents that know their stuff. Hence, is it any wonder that they will do well??

Dreamer

Yeah, agree.

For the exam, what is the frequency?
I mean, is it held once every week/month?

http://www.insurance.com.my/pdf/ExamFinalFA2013.pdf

Aha, thanks!
So is not fixed la, it depends on the timetable, hoho.

Oh yeah, Azurika said the exam is only RM100, if he remembers correctly. So, if any agency ask you pay more than that, be careful. OTS ask for RM250 to join. They arrange the exam and give you some files for use during sales pitch. RM150 for files? Hmm...

Good luck.

Don't usually the agency will pay the fees, as part of the employee's benefit? After all, without the certificate, the person is not allowed to sell insurance, no?

Hmm.. try PM Azurika.

Wondering, is the commission paid only when customers sign up and pay for the premium?

Then what about the assistance provided to the clients for claims. Does the agent receive commission as well?

No commission paid for claims. That is part of the agent's job responsibility. Insurance company needs to make profit

Paiseh. Then no fun la liddat.
I mean, if got clients to pay premium, then got commissions.
But assisting on the claims, no commission?

But then, those two are also considered as work done, no ?

If u lazy just ask customer service to deal with it. Haha.

For PCE(Pre-contract Examination) and CEILLI(Certificate Examination In Investment-linked Life Insurance) amounting to RM90+RM85=RM175. Normally OTS will only take PCE as they are not selling investment link medical card. That's the reason Azurika said less than RM100. But in normal agency, it will cost more than RM100 because of CEILLI exam.

It's your responsibility to help the client for the claims as they entrusted you when they bought your service at first place. Agent's wealth are not accumulate from first year premium but more on renewal premium, when your client(policyholder) pay renewal premium from their credit card, you will get commission without effort, but you get commission, no?

Well, if you want to earn a living in insurance line, you cannot put commission as your priority. You have to put responsibility and client's priority at first place and then the commission will come eventually along. Else you can't even survive in this career as your prospect only see your eyes are full of dollar sign.

This post has been edited by ExpZero: Dec 2 2013, 03:25 PM

This post has been edited by JohnL77: Dec 2 2013, 02:05 PM

Ask you simple logic.
Insurance agent take no basic, not tied to the agency. Why should I the boss, sponcer you to take an exam? You are not going to guarantee me any customer. Further more, you can take this license to another agency You ensure me that you can close 2 huge deals (Anual >20k), come I sponcer you Banks thou are different ya.

EXPzero has anwsered most of the questions in a profesional matter

nujikabane,

"you can take this license to another agency" is the keyword. Hahaha.

Just like how companies expect you to get your own degree. If we are talking about further enhancing your skills (CPD) after you have proven yourself, that can be considered, but sure got strings attached.

This post has been edited by JohnL77: Dec 2 2013, 02:31 PM

+1 for both of you

Try to emulate roystevenung, he seems to be honest and he gives straightforward answers.

https://forum.lowyat.net/topic/3037939

This post has been edited by JohnL77: Dec 2 2013, 04:05 PM

Really lost faith on insurance agent..
For my case, I switched my service agent bcoz the old 1 is 'resign' and so the same day i sign the transfer letter, my new agent propose me a better plan, I ask few times is that consider as upgrading and any change to my old policy but she just pusing me and didt really answer my question until I agree for the 'upgrading'

But after I got my new policy I only found out that actually it was a new policy and my old policy is still running by deducted my cash value (she cancelled my auto debit, so I didt realize at first) No wonder she told me after 1 year then I only can get back my cash for the surrender policy, to cover the new policy waiting period i guess.

In the same time, she asking me to join her agency. I actually have a very good impression on her for the 1st meet but now... I understand people are work for money.

Just sharing for me case.

You should take it up with Bank Negara or something.

So that's how they hit MDRT every year. They go back and ask their previous customer to "upgrade"?

This post has been edited by JohnL77: Dec 5 2013, 06:08 PM

Hello nujikabane, I am an insurance agent and it all depends on how good you are with dealing with people. You are to be very discipline and plan your own schedule everyday. No basic and it's all commission based. It's very similar to MLM pyramid schemes as one needs to do personal sales as well as recruitment. Upon balancing both, you can enjoy both a commission and also overiding, meaning a percentage of your sub-ordinates.

A good insurance agent will teach you how to cut cost, maximize your funds , and tell you what are the bad parts of the policy before juicing you up with all the new gizmos. If the first 5-10 mins they already ask you to upgrate or buy more, you know they are not listen, but selling