Life Insurance Companies Focus on Profitable Policies with Targeted Incentives

Life insurance companies are increasingly focusing on selective and targeted incentives for GA planners

Life insurance companies are increasingly focusing on selective and targeted incentives for GA planners. This strategy emphasizes higher incentives for profitable payment terms and specific products. In this blog post, we will explore the distinct incentive strategies for short-term whole life insurance and other key insurance products, highlighting the implications for the industry.

Increased Incentives for 5-Year Payment Short-Term Whole Life Insurance

Fewer life insurance companies are now prioritizing 5-year payment short-term whole life insurance. For instance, KDB Life lowered its next-month incentive for its 5-year payment "Double Chance Whole Life Insurance" from 400% to 100%.

Conversely, MetLife maintains a 500% next-month incentive for its "Dollar Whole Life Insurance Plus," while Shinhan Life offers a 420% incentive for its "Shinhan Moa The Dream Whole Life Insurance." Hanwha Life continues to provide a 350% incentive for its "The H Whole Life Insurance."

Focus on 7-Year Payment Short-Term Whole Life Insurance

The industry is also placing significant emphasis on 7-year payment plans for short-term whole life insurance. Dongyang Life, for instance, has introduced high incentives tied to productivity and performance, offering up to 760% (300% next-month, 300% for the 13th month, and 100% for productivity).

Lina Life and ABL Life both offer 500% incentives for their 7-year payment plans, with similar incentive structures. DB Life focuses on its "New Profitable and Happy Plus" with a 420% incentive (200% next-month, 220% for the 13th month, and 50% for the 15th month). Kyobo Life provides a 450% incentive for its "Practical Whole Life Plus," while KDB Life offers a 400% incentive for its "Support Premium" policy.

Aggressive Incentives for Comprehensive Health Insurance

Leading companies are also significantly boosting incentives for comprehensive health insurance products. Shinhan Life offers 1900% (200% next-month, 1700% for the 13th month) for its "Shinhan Comprehensive Health Insurance One" and "Shinhan Health Insurance One The Woman."

ABL Life provides a 1600% incentive (300% next-month, 1300% for the 13th month) for its "THE Comprehensive Health Insurance" and "THE Care Nursing Insurance." Mirae Asset Life and Dongyang Life also offer substantial incentives of 1500% and 1400%, respectively, for their key health insurance products.

Stable Incentives for Executive Term Insurance

Incentives for executive term insurance remain stable. Lina Life continues to offer 400% (250% next-month, 150% for the 13th month) for its "Family Love Term Insurance." Samsung Life maintains a 350% incentive for its executive term insurance with a payment period exceeding 20 years. Hanwha Life also provides a 400% incentive for its "CEO Term Insurance I."

Prioritizing Incentives for General and Variable Annuities

Life insurance companies without leading short-term whole life or third insurance products are focusing more on variable annuities. KB Life offers a 320% next-month incentive for its "100-Year Satisfaction Annuity Insurance."

Both KDB Life and MetLife actively promote variable annuities with a 200% next-month incentive (150% next-month, 50% for the 13th month).

An industry insider noted, "Life insurance companies are adjusting incentive rates to balance volume growth and profitability. They are differentiating incentives based on payment terms and focusing on highly profitable products to secure higher CSM (Contractual Service Margin)."

Life insurance companies are strategically adjusting their incentive structures to focus on profitable products and payment terms. This targeted approach aims to enhance sales motivation while maintaining profitability. As the industry evolves, companies must continue to refine their strategies to meet market demands effectively.