Transparency in GA Scout Costs: Quarterly Disclosures to Strengthen Market Discipline
To curb excessive competition in recruiting insurance agents, general agencies (GAs) will now be required to disclose the total amount of settlement support funds paid for recruiting agents on a quarterly basis. To curb excessive competition in recruiting insurance agents, general agencies (GAs) will now be required to disclose the total amount of settlement support funds paid for recruiting agents on a quarterly basis. This initiative, led by the Korea Insurance Agents Association, aims to enhance transparency and promote healthy market practices within the insurance industry. This blog post will delve into the key aspects of the newly established guidelines known as the 'Best Practices for GA Insurance Agent Settlement Support Fund Operations' and the expected impact of these measures. Recently, competition among general agencies (GAs) in the insurance industry has intensified, with some GAs offering settlement support funds amounting to 100-200% of the agents' previous a...