“ What do you do as an insurance salesperson ? ”

“I hear insurance sales are tough, but what is the truth?”

“I'm thinking of getting a job in insurance sales, but I wonder if I can continue for a long time.”

Many people have questions about insurance sales. If you don't have people around you who are actually working, it's hard to imagine what kind of work it is and what the actual situation is like.

Here, we will introduce all kinds of information about insurance sales, from the job description of insurance sales, why insurance sales are said to be hard, annual income of insurance sales, and who is suitable for insurance sales and who is not suitable for insurance sales.

If you are interested in working as an insurance salesperson, please refer to it as it also explains the points for finding a job and changing jobs.

What is insurance business?

Insurance sales is the sale of insurance products to individuals and corporations to prepare for risks that may occur in the future.

In addition, whether it is an individual or a corporation, there are many cases in which the insurance is reviewed and renewed in response to changes in the environment, and finally, the insurance payment is made consistently.

In this way, the insurance business becomes a long-term relationship with the customer.

In addition, depending on the company, there are cases where we provide product information to distributors, support sales, and manage sales.

Type of insurance business

There are many types of health care. The products sold are different depending on life insurance, non-life insurance, medical insurance, etc. In some cases, several types of insurance may be handled at the same time, so a wealth of knowledge about each type of insurance is required.

Type 1. Life insurance sales

The insurance that life insurance sells is insurance called “first sector” such as life insurance, endowment insurance, educational endowment insurance, and individual annuity insurance. Most of our sales are for individuals, but there are also corporate sales that sell insurance against corporate risks.

In any case, we listen carefully to the current situation of the customer and propose the most suitable insurance plan for the customer. Also, after selling is not the end, after-sales follow-up is also necessary.

In life insurance sales, no matter what insurance product you sell, it is rewarding to be able to stand by your customers for their future concerns and help them feel a little more secure in their daily lives and corporate activities.

Also, depending on the number of contracts and the amount of insurance, the income will rise visibly. Income can also be a source of motivation.

Type 2. Non-life insurance business

While life insurance is mainly insurance for “people”, non-life insurance is insurance for “things”. Automobile insurance, fire insurance, earthquake insurance, etc. are applicable, and are called “second sector”.

In the case of non-life insurance sales, there are insurance agency sales that sell insurance products to customers, agency sales for non-life insurance companies that provide sales support for insurance agents, and corporate sales that sell insurance cards to corporations.

The products sold and the sales style are slightly different from those of life insurance, but it is the same in terms of understanding the customer's needs and proposing the most suitable insurance plan for them to join. It is a rewarding job to provide a sense of security in the event of trouble and to be of assistance in an emergency.

Type 3. Medical and long-term care insurance sales

Medical insurance, long-term care insurance, cancer insurance, etc., which cover medical expenses that cannot be covered by public medical insurance (national health insurance, medical system for the elderly aged 75 or over, etc.), are called “third sector”. This “third sector” insurance product can be handled by both life insurance companies and non-life insurance companies.

Third-sector insurance, such as medical insurance, differs from company to company, so much so that even customers can understand it.

To do that, I need to research and research other companies' products, but I can directly pass on that knowledge to my customers, which makes my sales job worthwhile.

Also, as with life insurance and non-life insurance, a large number of contracts will lead to an increase in income, so you will find it rewarding in terms of income.

Insurance Sales Income

Compensation systems for insurance sales fluctuate greatly depending on incentives for obtaining contracts. According to the 2020 Wage Structure Basic Statistical Survey , the average annual income in the finance and insurance industry was 4,792,000 yen.

By gender, the annual income of women is lower than that of women.

However, since insurance sales incentives vary from 20% to 70% of the contract amount depending on the company, there is a big difference in annual income.

For example, there is an organization called MDRT that only those who earn an annual income of about 11 million yen or more in insurance sales can join, and as of April 2021, there are 9,363 Japanese subscribers. Some of them are said to have earned more than 100 million yen a year.

Looking at the breakdown of members, the number of foreign insurance companies such as Gibraltar Life, MetLife, and Prudential Life is increasing, which indicates the high level of incentives.

Are women active in insurance sales?

As mentioned above, women's salaries are less likely to decrease in insurance sales as they age, so women of all ages are often active.

According to the FY2020 Private Salary Survey , the average annual income of women in the finance and insurance industry is 4,165,000 yen, which is higher than other industries.

Domestic insurance companies have traditionally hired many female salespeople as sales ladies, creating an environment that is easier for women to work in than in other industries. There are many companies that make it easy to balance work and family, so it can be said that there are many women who are active even as they age.

That doesn't mean men can't do it. According to the FY2020 Private Salary Survey, the average age and average annual income are not inferior to other industries, and the average annual income is rather high .

The reason insurance sales are tough and people tell us to stop

In general, it is true that many people say that “insurance sales are tough”. The difficulty and severity are proportional to the salary system that allows you to receive high rewards.

Here, we will introduce the reasons why insurance sales are said to be tough and should be stopped.

Reason 1. Performance-based compensation system

As we have introduced so far, individual remuneration is determined by higher incentives in insurance sales compared to other industries. In other words, sales staff who can get a contract receive high compensation, and those who can't get a contract have a low income forever.

I can't get a lot of contracts every month, so my income is not stable. There is a fixed salary, but the incentive ratio is high, so in months when you can't get a contract, your monthly income may be less than 100,000 yen. On the other hand, there is no upper limit on the reward, so you can earn as much as you sell.

However, such instability is generally seen as “tight” and “harsh.” Insurance sales is literally a performance-oriented world. It can be a very tough industry for those who are not successful.

Reason 2. Quota/goal-achieving culture

Many insurance companies set quotas for their sales staff regarding their sales performance, working conditions, and sales activities. This applies to the number of contracts, contract amount, visits to contractors, days of absence and lateness, maintenance procedures, acquisition of qualifications, etc.

It depends on the company, but roughly every 3 to 6 months, an assessment is made to see if the quota has been achieved.

In some cases, the employment contract is terminated due to continuous failure to meet the quota.

Before joining the company, it seems that there are many people who say that there is no quota and that it is something that anyone can achieve. prize.

Reason 3. Closing is hard

Although insurance sales are intangible products, they are said to have a very low closing rate because they are expensive and require continuous payments. Closing is also difficult. That is why the insurance business is said to be difficult.

One of the reasons why insurance sales do not go well is that many people think that insurance sales are annoying, and sales staff unconsciously think that they are annoying, and feel guilty and resistant to closing. Because I have a feeling

Also, in order to increase the closing rate, it is important to have a relationship of trust with the customer, so it is necessary to visit the customer many times. If you don't meet your quota, your superiors and others may say something bad about you, and that's why they think you're “hard” and “harsh.”

Advantages of insurance sales

If you are thinking of getting a job in insurance sales or changing jobs, you need to know the pros and cons of insurance sales. It would be a problem if, after getting a job, it turned out to be “different from what I thought.”

Let's start with the benefits.

Merit 1. You can earn if you get results

Again, the biggest advantage of insurance sales is that you can earn money if you produce results. And you can earn unlimited money. Especially if you can get a contract for a high-priced product, your income will increase at once. Some people in their 20s earn more than 10 million yen a year.

Incentives are the main source of income for Japanese insurance companies, but foreign-affiliated insurance companies place even more emphasis on incentives.

The form of remuneration differs depending on the company, but 20% to 70% of the insurance premium is often an incentive in the first year after obtaining a contract.

After that, it will be around 10% in the 2nd to 4th years, and in many cases it will be zero after the 5th year.

The more you sell, the more incentives are added, so people who are good at sales can earn endlessly.

Advantage 2. Easy to feel rewarding

Insurance sales are often discouraged, but I am actually useful to my clients because my work directly affects their life plans and risk hedging in corporate activities.

Every time the environment changes, by doing planning that matches the current environment, customers often thank us, which directly leads to rewarding.

Especially in the case of individuals, we will continue to communicate with the customer before signing the contract, and we will continue to have a long relationship after the contract.

The responsibility becomes heavier, but as the number of customers increases and the number of years of service increases, it becomes rewarding and helps maintain motivation.

Merit 3. It's fun to expand your network through referrals

From the point of view of buying an insurance product, it is not easy to say, “Well, let's buy this insurance” just because of the quality of the product. Since it is an intangible product, it is difficult to make decisions on your own, and specialized knowledge is required.

For that reason alone, it can be said that the real pleasure of insurance sales is that the number of customers increases through referrals from customers. This is the result of not only the quality of the product, but also the trust and security as a sales person.

The more you work, the more you connect with these customers, the more motivated you become.

If the customer does not trust the sales person, they will not bother to introduce it to their acquaintances. Getting an introduction means that you are recognized as a person.

Disadvantages of insurance business

Insurance business has both advantages and disadvantages. If you want to make insurance sales your future job, be sure to understand the disadvantages. Understand the pros and cons before making a job or career change decision.

Disadvantages 1. You need to work unrefined for your goals

As mentioned above, quotas follow insurance sales. The quota becomes stricter as the length of service increases. There are also penalties, such as salary cuts, if quotas and goals are not met.

For this reason, there are many sales staff who give up their holidays to conduct sales activities.

In addition, since it is necessary to visit the customer according to their convenience, there are cases where business negotiations are held at night.

Especially when dealing with self-employed customers, it is often the case that interviews cannot be held until after the store or company is over, and the reality is that there are times when you have to cut back on your private time to meet your quota.

In this way, it is better to remember that it is necessary to work unrefinedly in order to achieve quotas and goals.

Disadvantage 2. Necessary closing is required

Insurance is a product with a low closing rate, whether it is life insurance or non-life insurance. Since it is an expensive intangible product, customers are reluctant to shake their heads.

In order to get a contract, we visit the customer again and again, propose various plans, and sometimes need to close many times. Customers may dislike a persistent closing, and there are many situations where it becomes mentally tough.

Unless you really think, “This is a good product and I want you to buy it,” but as I mentioned earlier, there are quotas, so it's not always the case. When you do, it can be a pain to do multiple closings.

These are not limited to insurance sales, but let's understand the existence of these disadvantages.

Disadvantages 3. Even if you are forced to do business by your relatives

If you can't meet your quota or goals, there are many cases where you are forced to sell insurance to your relatives, friends, and acquaintances. The logic that “our insurance is a good product, so it's okay to recommend it to your relatives” is reasonable, but as a sales person, it's natural to hesitate.

Parents and siblings may say, “It can't be helped.”

If you fail even once in such sales to your relatives, you may destroy human relationships, so it is a very delicate problem. Also, if a single mistake is known to those around you, even a casual phone call may create a barrier, saying that you may be forced to buy insurance.

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