The Hidden Cost of the GA 1st Place Race: Abandoned Insurance Consumers
In the competitive race to be the top General Agency (GA) in the insurance industry In the competitive race to be the top General Agency (GA) in the insurance industry, an alarming trend is emerging—insurance consumers are increasingly being neglected. As insurance agents frequently change jobs or leave the industry, more and more policyholders are left without proper management, resulting in what is known as "orphan contracts." This phenomenon has reached a troubling scale, with over 4 million such contracts being created annually, leaving consumers vulnerable and unprotected. The insurance industry is currently experiencing a significant increase in the number of "orphan contracts," where policyholders are left without an assigned insurance agent due to the agent's departure from the company. According to the Financial Supervisory Service, the retention rate of exclusive insurance agents last year was only 33% for life insurance companies and 52% for non-life ...