According to an insurance practitioner, since this year, agency surrender has shown a high incidence trend. The most important change and feature is that it has changed from dark to bright, from scattered agency to corporatized operation, and the regional scope is expanding day by day.
Compared with the annual new policies of the insurance industry, the direct impact of the development of surrender industry is not obvious, but it will undoubtedly affect the reputation and regulatory rating of insurance institutions. At present, what are the new ways to play the surrender industry chain? How will insurance companies respond?
Industrialization of agency surrender mode
In 2010, an old man in Taizhou, Jiangsu Province, put in more than ten insurance policies for his grandsons parents without his parents knowledge. The premium was several hundred thousand yuan, which was fully refunded after civil litigation and administrative complaints. Since then, full surrender has been well known by more people and gradually industrialized.
People familiar with insurance know that if consumers apply for surrender after the hesitation period, they can only return the cash value; however, the so-called agency surrender industry handles full surrender by means of complaints and other means. However, consumers will be charged a handling fee of 30% - 60% of the full premium.
Recruiting students in the name of starting a business, training by imitating the direct selling mode of insurance companies, and gaining customers to develop the industry are not the latest methods for the industry of agency surrender. However, the basic routine of making profits by relying on retirement financing, returning the old for the new and charging high handling fees has not changed.
The company is expanding from the original online and offline advertising channels to the small and unsupervised online and offline advertising channels. An insurance practitioner concluded to the economic observer.
In terms of customer acquisition channels, agency surrender has developed from the original online platform, offline small advertising, and financial companies to outdoor advertising, telephone call out, soliciting resigned salesmen to obtain customers, and even posing as insurance company personnel to encourage customers to withdraw insurance under the name of policy inspection.
The reporter of the Economic Observer learned that on July 16, 2019, an insurance company customer Huang received a call from customer service, claiming that a salesman would provide door-to-door service, and then a stranger came to the customers home to instigate the customer to surrender the insurance policy. After investigation, the insurance company did not call the customer on July 16. It is suspected that the black goods organization used the virtual number to disguise as the service personnel of the insurance company to lure the customer to surrender the insurance.
Agent surrender AB side
According to the current insurance law, if the hesitation period has passed, insurance consumers can only return the cash value if they apply for surrender. In the past few years, the cash value of many long-term insurance policies is very low. For example, if some long-term life insurance policies are withdrawn in the first year, the cash value may be less than 40% of the premium. The loss of surrender through normal channels is large, which also brings business opportunities to the practitioners of surrender industry.
However, why are insurance companies, which have always been good at actuarial science, been taken advantage of by some malicious surrenders and then pulled up? In short, it is to catch the insurance company to deal with the regulatory assessment to reduce the complaint rate and choose the psychology of peace of mind. As long as the operation is in place, most of them can succeed. If they directly resort to supervision, insurance companies will try their best to satisfy the needs of consumers in order to appease consumers. In addition, sometimes, the cost of handling a complaint is relatively high, the energy of insurance enterprises is limited, and some basic organizations are faced with greater pressure, many unreasonable requirements will also be met Branch managers told the economic observer, at present, we will first understand the specific situation of the complaint, analyze the pros and cons, and persuade. If we continue to insist, there is no way.
In recent years, the CIRC has publicized the complaints received by insurance companies on a quarterly and annual basis, and publicized the companies with a relatively high number of complaints.
So how does agent surrender operate?
A person from a large and medium-sized insurance company said that after the agent complained that the operator used various channels to obtain the information of the customers insurance policy, he used the name of the insurance company to meet the customer, or pushed the false documents of the official regulatory agencies such as China Banking and Insurance Regulatory Commission to defraud the consumers trust, and promised to assist the customer to handle the full refund.
Specifically, there are several kinds of profit-making forms of agency surrender, and illegal profits are obtained through the following forms:
One is to sign a service agreement to collect deposit and personal information such as customer ID card, bank card, insurance policy, etc., and encourage or impersonate customers to make complaints through regulatory complaint hotline 12378 or sending letters; the other is to guide customers to use speech skills to guide sales personnel or internal staff of insurance companies to make adverse statements, and use telephone recording, wechat screen capture and other fishing evidence collection. Write a formatted agency complaint letter, mail it to the local regulatory authorities, and use the supervision to pressure the insurance company to charge 30% - 60% of the full premium from the insurance company after the insurance company withdraws the insurance policy; third, it organizes the resigned salesman to induce the customer to withdraw from the old and invest in the new, purchase the so-called high-yield products, and earn commission income by prying orders.
A person from a large insurance company said that in the process of surrender and evidence collection, the agent surrender personnel usually do not allow insurance consumers to contact with insurance companies, and try to sign agency rights protection agreement with customers. In this process, individual agent platforms bind customers with ID cards, insurance policies and bank cards as collateral.
It is worth noting that many financial companies are also involved. For example, micro credit companies, financial consulting companies, car rental companies and other financial related companies began to operate agency surrender business.
The reporter of Economic Observer found that a loan agency company in Dongguan also engaged in similar business. In April this year, the bus in Yicheng County, Linfen County, Shanxi Province, appeared the advertisement of all insurance companies refund the full premium of insurance policies, and professional rights protection on the bus. Some people even held up relevant billboards at Dalian high-speed railway station.
On April 9, 2020, the China Banking and Insurance Regulatory Commission (cbcirc) issued the tips on the prevention of risks related to agency surrender , warning consumers to be alert to the potential risks of agency surrender , handle surrender prudently according to their own needs, and rationally safeguard their legitimate rights and interests from infringement according to law. On July 8, the China Insurance Industry Association issued a warning to insurance institutions and insurance consumers to guard against the risk of agency surrender, and more than 20 insurance industry associations in various regions have also issued tips in succession.
As a matter of fact, there are already regulatory risk warnings. In August 2019, the Guangdong banking and Insurance Regulatory Bureau issued a risk warning on the phenomenon of centralized surrender, and then Henan, Sichuan, Liaoning, Hebei, Beijing and other places also issued a warning respectively.
On June 5, Dalian banking and Insurance Regulatory Bureau specially reported to the municipal government the complaints of illegal property in the banking and insurance industry, and the vice mayor in charge gave instructions on cracking down on the complaints.
According to incomplete statistics, in recent years, regulatory agencies in various regions, including the China Banking and Insurance Regulatory Commission (CIRC), have prompted more than 50 times the relevant risks of agency surrender, which has aroused widespread social concern.
Despite repeated reminders from the regulatory authorities, the agency surrender business still has a loophole in the legal vacuum. Mr. Liu Haifeng, partner of Guangdong Hancheng law firm, said that at present, there is no special law to punish the industry of insurance surrender. Strictly speaking, agency surrender belongs to legal service, insurance service and agency service of insurance contract dispute, which should be represented by law firm or even implemented by insurance brokerage agency with insurance industry qualification Some qualified institutions should not engage in this service, but there is no effective means to regulate them.
In addition, Liu Haifeng also talked about the reasons why the industry has been repeatedly banned, such as the insufficient information about the agents obtained by the insured and the weak legal consciousness of the insured. An employee of yongdali insurance brokerage company added to the reporter that, compared with the compliance intermediary, the commission charged by the illegal intermediary is often very high, which can reach 30% - 50% of the refund premium, which also attracts many people to invest in this industry.
But in the face of this situation, insurance companies are also taking active action. In a city in Southwest China, 13 insurance companies jointly wrote to the local financial regulatory bureau, reporting that a local enterprise consulting and management company was engaged in malicious agency surrender business; in Dalian, several insurance agents were undercover in the name of franchise to collect evidence;
At the same time, insurance companies also take actions from their own.
According to the introduction of relevant personnel of Ping An Life Insurance, on the one hand, the company internally governs the source of sales disputes, puts an end to the hidden dangers of complaints, carries out comprehensive sales quality management from the aspects of system optimization, process control, risk investigation and personnel training, and strengthens the compliance operation. On the other hand, we should strengthen the consumer risk warning and consumer protection education, strengthen the publicity of the companys official complaint channels, guide consumers to rationally protect their rights and interests from the regular channels, and effectively safeguard the rights and interests of consumers. In addition, the company also actively promotes the establishment and operation of multi-dimensional dispute mediation mechanisms, such as the association of banks, financial consumption mediation center, peoples mediation room and streets, so as to improve the fairness of dispute resolution. It is true that the rapid growth of agency surrender also reflects the stubborn disease of insurance company sales misleading to a certain extent. For example, some insurance salesmen conceal or exaggerate the information of insurance products when they sell. After a period of time, consumers regret the insurance, but they are not willing to get only cash value when they withdraw insurance, so they find individuals or organizations dealing with agency surrender business. Therefore, in addition to warning consumers, insurance companies should take the main responsibility of management, reflect on this phenomenon, and pay more attention to improving the professional quality of salesmen. Source of this article: Guo Chenqi, editor in charge of economic observation network_ NBJ9931
According to the introduction of relevant personnel of Ping An Life Insurance, on the one hand, the company internally governs the source of sales disputes, puts an end to the hidden dangers of complaints, carries out comprehensive sales quality management from the aspects of system optimization, process control, risk investigation and personnel training, and strengthens the compliance operation. On the other hand, we should strengthen the consumer risk warning and consumer protection education, strengthen the publicity of the companys official complaint channels, guide consumers to rationally protect their rights and interests from the regular channels, and effectively safeguard the rights and interests of consumers. In addition, the company also actively promotes the establishment and operation of multi-dimensional dispute mediation mechanisms, such as the association of banks, financial consumption mediation center, peoples mediation room and streets, so as to improve the fairness of dispute resolution.
Therefore, in addition to warning consumers, insurance companies should take the main responsibility of management, reflect on this phenomenon, and pay more attention to improving the professional quality of salesmen.