Controversy Surrounds Incar Financial Services’ "Advance Support Fund" — Increased Burden on Branch Managers and Unfair Terms

Incar Financial Services’ branch manager support fund system has come under scrutiny.

Incar Financial Services’ branch manager support fund system has come under scrutiny. The settlement support fund intended to attract top insurance planners is instead increasing the burden on branch managers and allegedly contains clauses that favor the company. This post explores the controversy surrounding Incar Financial Services' support fund policy, the company's explanation, and potential solutions to the problem.

Recently, controversy has been growing in the GA (General Agency) industry regarding Incar Financial Services' "Advance Support Fund" system. The company provides this fund to branch managers to help attract top insurance planners, but critics argue that it essentially functions as a loan that burdens branch managers instead of fulfilling its intended purpose.

To attract insurance planners, branch managers are expected to pay a settlement support fund amounting to 30% of the planner’s previous annual salary, typically covered by the manager’s own funds. Incar Financial Services offers an "Advance Support Fund," a type of recruitment incentive loan with a 10-month repayment period. However, the terms of the agreement include problematic clauses. For example, if a planner fails to meet targets or is terminated, the branch manager is responsible for repaying the support fund. Moreover, if the branch manager is terminated or terminates the agreement within three years, they must pay a penalty equivalent to the total amount of the support funds received.

In response to these allegations, a representative from Incar Financial Services explained, "Based on the agreement, it may appear as though if you borrow 50 million won and are terminated within three years, you would have to repay another 50 million won, totaling 100 million won. However, in practice, we only request repayment of the principal, ensuring that it does not exceed the original loan amount." The representative further clarified that “the repayment responsibility lies with the branch manager, who independently recruits insurance planners, and the concept is to repay the principal without interest, rather than imposing a joint liability.”

The company has also indicated that it plans to revise the terms that could be misleading. Incar Financial Services stated, “We plan to take measures, such as removing the ambiguous clauses, effective from September 1.”

The controversy over Incar Financial Services' Advance Support Fund raises concerns about the increased burden on branch managers. While the company has responded with explanations and plans for corrective measures, further improvements are needed to genuinely reduce the burden on branch managers. A fair and balanced support system is essential for sustainable growth in the financial sector, ensuring that branch managers are not unfairly disadvantaged in their efforts to recruit and support insurance planners.