Medical costs are increasing yearly and people are losing jobs to the robotic automation systems. Life insurance agents are losing sales and cut in the commissions and bonuses due to poor sales and life insurance companies cut down human resources in agency forces using this dirty cut sales remuneration.
Just met up with a senior life insurance career agent Uncle Alex Tan, aged 65 who served 40 years jumped from GE , former agency director fired and rejoiced Prudential. He said the commission and bonuses structures have been changed from higher to lowest when the new technology AI takes over the life insurance services replace and kick out the agent customer care services soon. The life insurance premiums increasing yearly especially the Medical policies are very expensive now.
His tears dropped down when he said his wife passed away in 2015 due to breast cancer and heart diseases. He took care 5 children with triple jobs as a life agent, real estate agent and part time Grab driver now. His children are 2 jobless graduates and left 3 schooling form 3, 4 &5 still need education expenses.
SADLY , how can he overcome with poor sales in life insurance and property glut market. His GRAB biz is slowing down with public take MRT and Buses now. So how? He came to protest showed support for his Prudential Life agents now. Very Sad true story.
Insurance companies cut bonuses and commission on agents are sunset industry for life planning jobs. It ain’t lucrative to become a life insurance planner or agent since Artificial intelligence technology online life insurance services provide cheaper discounted premium and effective in determine their protection wealth and health care policies.
More than 4,000 insurance agents from the Prudential Life Insurance Agency Association (Prulia) held a peaceful protest at the Prudential Tower in Kuala Lumpur on Thursday
Some 4,000 Prudential agents nationwide turned up at the Prudential Tower in Jalan Sultan Ismail to protest the 30% slash in bonus and commission.
The protest was organised by Prudential Life Insurance Agency Association Malaysia (PRULIA) as a last resort after a year of fruitless meetings.
PRULIA president Maniraja Chandran said the agents felt the reductions and conditions on them imposed on them since the beginning of the year were unfair.
“As entrepreneurs, agents are not paid any basic salary.
Chandran claimed that Prudential was adjusting their sales-based bonus by introducing the Balance Score Card (BLC) which would result in the fixed commission for the agents becoming variable.
The slash in bonuses and commissions is scheduled to be implemented next year.
Sasha Arshad, 47, said she felt disappointed after over a decade of hard work and yet now faced reductions instead of rewards or better commission and bonuses.
“It is not fair for us, especially the junior agents,” she added.
Another agent, Prema Kaur, 60, said the reduction was unnecessary as the new system would affect all the agents equally.
“They should follow how the Singaporeans do it. Hard-working agents should be rewarded with more.
“But whatever we earn, they will hold back the payments until we meet a certain target. It is unfair,” said Prema who has been an agent for 24 years.
In a statement, Prudential Assurance Malaysia Bhd (PAMB) believes the BLC will increase the insurance penetration in Malaysia and is certain to meet the KPIs set by the regulator.
“PAMB is also open to continuing the engagement and discussion,” the company said.