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
