bodyType

customContents

entityId

entityUuid

articlePageQuery

filter

article

articleBaseAdvertisingInfoArticle

articleListArticle

articleSeoArticle

helpersCheckIsPostiesArticle

hooksArticleAcknowledgementGateOverlayArticle

hooksTrackPageViewArticle

hooksContentInterestArticle

articleLinkingDataContent

hooksAmpRedirectArticle

articleSchemaContent

liveArticle

advertZone

sentiment

contentLock

topics

types

sections

paywallTypes

createdDate

publishedDate

moreOnThisArticles

urlAlias

commentCount

authorLocations

authors

corrections

sponsorType

displaySlideShow

multimediaEmbed

printHeadline

seriesContainer

articleSpeeches

socialHeadline

headline

images

flag

firstTopic

glossary

flattenTypeIds

additionalInfoBoxes

quizIds

image

relatedLinks

relatedNewsletters

__typename

sponsor

pdfFiles

seriesReverseOrder

series

disableOffPlatformContent

published

updatedDate

summary

subHeadline

body

keywords

readingTime

customTimezone

liveContents

Tim Metcalfe

CONSIDERING A CAREER in the booming insurance industry? Well, be warned it is a job that demands the highest commitment.

Statistics show an extremely high annual staff turnover rate in the sector, touching 90 per cent in Hong Kong.

'It's not a business for everyone,' said Steve Pang,  manager of the New Advisor Development Centre at Zurich Insurance Group (Hong Kong),  one of Hong Kong's leading insurers. 'Starting out as an insurance agent is quite hard. You face a lot of rejection, which can be psychologically unhealthy.'

And the financial rewards are initially not  appealing. Commission on sales determines income and, while some newcomers can earn up to $30,000 a month in a few months, many have to be satisfied with just a few thousand dollars.

'You have to accumulate clients for a stable income. The initiation period is tough, while the range of earnings can be vast,' Mr Pang said.

The industry's high turnover rate is one reason Zurich recently opened its innovative 'school' for aspiring insurance professionals, a first for Hong Kong.

The development centre aims to address the industry's chronic problem of staff retention by training a committed workforce. The Zurich programme takes three to five months, unlike some other insurance company programmes that are little more than a few weeks of study, just to meet statutory requirements. Recruits continue with another two years of study to qualify as certified financial planners.

'It is like a mutual selection process. It gives the trainee an opportunity to understand the industry and the company, and decide if it is really for him or her. We believe that those who complete the programme will be committed to the company and will perform well. We are striving to build a loyal team with a high retention rate,' Mr Pang said.

Another reason for the initiative is the  trend towards higher standards in the industry.

'It used to be easy to join the industry. There were no exams. You just signed a contract and started selling,' he said. 'But regulations are tighter now, with a lot of exams and high expectations from customers. So you have to equip employees with the necessary knowledge, skills and experience.'

Zurich's cadet school  was the industry's 'best possible entry point', Mr Pang said.

The school seeks to attract professionals from other sectors, preferably mature employees.

Of special interest  are those who may have lost their jobs during downsizing exercises in various industries, such as the information technology sector, or non-governmental organisations with trimmed budgets.

The programme will accommodate  eight to 10 candidates twice a month. It starts with two weeks of classroom-based intensive training, providing basic knowledge about the industry, the company, its 'customer-centric' culture, its financial products and best practices for selling.

The next stage is  a three-month intensive  course to teach skills and instil  confidence in the fledgling advisers.   The second stage  also includes mentoring, coaching and advanced workshops.  Recruits are shown how to  prospect for customers.

'The fast-track training programme is an intense learning experience designed to produce  qualified,  highly motivated insurance advisers who are committed to the industry, the company and their future,'  he said.

Newcomers taking the programme receive a monthly allowance of  $7,000 to $8,000.   After the course, they are  on their own financially and must rely on the commissions they earn. Mr Pang  said that newcomers  would not be judged on their immediate successes or failures.

'We will not be looking at results in the first few months. We prefer to look at persistence and commitment. If you work hard, the results will follow. But it is necessary to stick it out, usually for about 18 months. After that, the earnings become fairly stable,' Mr Pang said.

All recruits first join Zurich's 600-strong direct sales force. Those who persevere may then be offered a management position,  or they may choose to continue in frontline sales, effectively running their own businesses.

Given the possible difficulties at the outset, why are professionals attracted to the insurance business in the first place?

Insurance is a growth industry. People are living longer  and they recognise the importance of proper planning for  retirement. According to the Office of the Commissioner of Insurance,  sales have recorded double-digit growth annually for the past decade and are worth more than $100 billion a year.

'An industry that is booming in Hong Kong is always a good option, and there are also exciting prospects on the mainland,' Mr Pang said.

Zurich is playing a lead role in the insurance boom by offering the entire range of insurance and financial plans. The company is the largest Swiss-based insurer, a Fortune Global 100  company with 57,000 employees worldwide serving 30 million customers. The firm's premium income in Hong Kong alone exceeds $3 billion a year, but the number of people employed  is static.

'The high turnover rate is one reason, but it is also a sign that the industry is moving towards more professional standards, and that customer expectations have risen,' Mr Pang said.

What You Need

Dedication, commitment

Drive, initiative, enthusiasm

Readiness to undergo dedicated training

Focus on results

Strong communication skills

Readiness for a challenge



Launch pad