The Insurance Commission (IC) is expecting at least 40,000 insurance agent licensure examinees by the end of the year on the back of the Philippines’s strong economy.
With the total number of agent examinees reaching 27,055 in August alone, the IC said the figure is among the highest recorded over the years.
“At its present rate, the IC estimates that 2016 could turn out to be a record year. If the trend continues, more than 40,000 individuals are forecast to complete examinations for insurance agents this year,” a statement from the IC said.
Of the total number of examinees, 8,287 applied for a life insurance sales or general agent license, 1,048 for a nonlife license, and 17,719 for a variable life (VUL) license.
Since 2010, the highest number of examinees was recorded in 2014 at 36,798 from a low of 12,970 posted in 2010. The IC is the government agency mandated to promote and regulate the country’s insurance industry.
“So far, 2016 is turning out to be the strongest year based on initial data,” said Dennis B. Funa, IC deputy insurance commissioner and officer in charge.
Last year the IC reported a total of 61,461 licensed life insurance agents, 449 licensed nonlife or general agents and 58,308 VUL agents. While in 2011, life agents numbered 36,850, general agents reached 193, and VUL agents numbered 8,314.
The number of life agents expanded from 32,576 in 2013 to 55,169 in the IC’s record growth rate year of 2014.
Funa said the strong economy, as seen by the strong growth in premium income in the first nine months of the year, could well justify the anticipated record of licensure examinees.
“It is a strong sign that the country’s insurance industry is becoming an employment option for the expanding productive population,” he added.
For 2016, the IC completed a newly designed Agent’s Computerized Exam (ACE) program, and a pilot testing prior to implementation will be conducted once the questions have been reviewed and approved. Logistics for the said program, including the procurement of computers to be used, were explained to enhance the efficiency of the examination process, and the integrity and reliability of the examination are also assured.
Funa said the ACE aims to fully automate licensure and examinations for insurance agents. In addition to the automation of the licensure and examination, the IC developed new sets of questions, which are currently under review, to be given to applicants to effectively test their proficiency.
“We are expecting that there will be an increase in the number of insurance agents, taking into consideration that we will be able to accommodate more applicants to take the licensure exam in view of the newly designed ACE,” he said.
Life insurers in the country have informed the IC that they were in a recruitment binge, from general agents to those armed with investment knowledge, and those suited for bancassurance operations.
Bancassurance allows insurers to sell protection and investment products at bank premises through their financial advisers.
Based on data from the Philippine Statistics Authority (PSA), the country’s employment rate expanded to 95.3 percent in October this year from 94.4 percent in the same period last year. The labor force participation rate also increased to 63.6 percent.
In its annual Total Remuneration Survey and biannual Market Pulse surveys, global consultancy firm Mercer said sales and finance are the two most difficult roles to recruit and retain.
“As a result, organizations in the Philippines compete for talent regardless of industry and location. Sales and finance are the two most difficult roles to recruit and retain.
The sales role cuts across different industries; hence, it has become an in-demand job, and the influx of shared services operation in the Philippines has opened up a lot of opportunities for the finance roles,” Mercer said.