After-Work Side Job Planners Flock in for '130,000 Won a Month' Allowance, but Side Effects Grow [Financial Microscope]

Expansion of the 1200% Rule to GAs in July

Rising Demand for Part-Time Planners in the Insurance Industry

Concerns Over Low Policy Retention Rates and Other Issues

Unfair Policy Replacements Undermine Trust in the Insurance Sector

There are growing concerns that the rise in “N-jobber planners” (part-time insurance planners), who are salaried workers and others earning additional income as insurance agents, is reducing the efficiency of insurance product sales. From the perspective of insurance companies, the expansion of part-time planners helps broaden their business scope and diversify their portfolios, making them eager to recruit more. However, there are also significant worries that if these planners leave or switch jobs after only a short period, it could result in mis-selling. Calls are increasing for measures to reduce the risk of unfair policy switching (policy replacement) by improving product sales efficiency and strengthening employment stability for planners.

After Lotte and Meritz, Industry Heavyweight Samsung Joins the Race

According to the insurance industry on June 10, after Lotte Insurance, the market leader in the part-time planner segment, Meritz Fire & Marine Insurance, Samsung Fire & Marine Insurance, and KB Insurance have joined as followers. Meritz Fire & Marine Insurance entered the market at the end of last year, threatening Lotte’s leading position, and with Samsung Fire & Marine Insurance—the top general insurer—joining at the beginning of this year, the competition has intensified as Samsung is now chasing Meritz.

For insurance companies, recruiting part-time planners from diverse backgrounds provides an opportunity to diversify their sales portfolios. The aging of full-time planners and the limited influx of new talent are also reasons why insurers are turning their attention to part-time planners. In addition, as the importance of selling high-Contractual Service Margin (CSM) protection-type products, such as health and life insurance, increases compared to traditional auto insurance, securing a large number of planners has become a priority. CSM is a key indicator that significantly affects the current profitability of an insurance company.

Entry barriers for part-time planners are relatively low. With the perception that anyone—self-employed, salaried workers, or university students—can generate income through mobile sales as long as they obtain the required certification, the number of part-time planners has been rapidly increasing. In December 2023, Lotte Insurance launched its mobile sales support platform “Wonder,” and Meritz Fire & Marine Insurance introduced its online sales platform “Meritz Partners” in March of the following year. This year, Samsung Fire & Marine Insurance rolled out the “N-Job Crew” platform, and KB Insurance launched the “KB N-Jobber” platform, intensifying the competition to catch up.

The defining feature of part-time planners is remote sales. Traditionally, insurance products were considered so complex that face-to-face meetings with customers were deemed essential for sales. However, non-life insurers now conduct every stage—recruitment, qualification exams, training, appointment, and sales—remotely. Part-time planners do not physically go to the office, instead processing insurance contracts via online systems. This has spread the perception that one can earn extra income through “remote insurance sales.”

Low Policy Retention Rates ... A Factor Undermining Trust

The issue is that mis-selling risks, such as unfair policy replacement—a factor undermining trust in the insurance industry—are significant. Unlike exclusive, full-time planners, part-time planners are often focused on short-term income rather than building a stable career. Because they are likely to leave or change jobs after a short period, problems can arise in the long-term maintenance and management of specific insurance contracts.

The financial regulatory authorities believe that the entry of part-time planners has affected the efficiency of product sales and the job stability of planners in the insurance industry. According to the “2025 Sales Channel Efficiency and Supervisory Direction for Insurance Companies” report released by the Financial Supervisory Service on April 29, the retention rate for planners—meaning the percentage who continue recruitment activities one year after joining—rose by 1.3 percentage points, from 52.6% at the end of 2024 to 53.9% at the end of 2025. However, when part-time planners are included, the retention rate actually falls by 1.2 percentage points to 51.4%.

Another figure closely monitored by the authorities is the policy retention rate. As of the end of last year, the 13th-month (1-year) policy retention rate for all exclusive planners averaged 88.4%, whereas for part-time planners, it was only 82.2%—6.2 percentage points lower. This is also related to the lower job stability of part-time planners. The average monthly income per part-time planner is 130,000 won, which is just 4% of the 3,290,000 won earned by exclusive planners.

Looking at the average monthly income per exclusive planner, it rose by 210,000 won (6.2%) from 3,380,000 won at the end of 2024 to 3,590,000 won at the end of last year. However, when part-time planners are included, it actually decreased by 90,000 won (2.7%) to 3,290,000 won. Due to low job stability, part-time planners may be less attentive to managing products after the initial sale. There are ongoing concerns that the quality of sales is declining, as many approach the planner role simply as a short-term side job for extra pocket money.

Authorities Tighten Supervision ... Managing N-jobbers Becomes an Industry-wide Issue

Regulatory authorities are closely watching the marketing efforts by some insurers to recruit part-time planners, as well as the resulting potential for moral hazard and mis-selling. In particular, starting next month, the “1,200% rule” will be expanded to include corporate insurance agencies (GAs), causing significant upheaval in the insurance sales sector. The 1,200% rule limits the total of recruitment commissions and settlement support provided to planners during the first year of insurance sales to no more than 12 times the monthly premium.

Once the rule is implemented, GAs will lose their previous advantage of luring exclusive planners from primary insurers by offering high commissions. As a result, a “scouting war” to secure outstanding planners before the regulation takes effect has erupted, and competition among insurers to secure even part-time planners to fill potential talent gaps has intensified. This is also why authorities have recently adopted a stricter stance on the rapid growth of part-time planners.

As insurance companies aggressively compete to secure talent, there are growing concerns that mis-selling could increase if part-time planners begin selling products to people beyond their close acquaintances. A senior industry official stated, “The regulatory authorities have not issued any direct guidelines or instructions on this matter. Insurers merely request that part-time planners avoid selling to people other than close acquaintances or family members.”

The Financial Supervisory Service announced that it plans to guide insurers to strengthen internal controls over the part-time planner channel. While there have been no abnormal signs such as a high rate of mis-selling by part-time planners so far, the fact that many are juggling this with other jobs raises some concerns about their sales professionalism. Accordingly, the authorities plan to encourage insurers to strengthen internal controls—including enhanced in-house training for part-time planners to improve professionalism, stricter adherence to proper sales procedures, and tighter oversight of exaggerated advertising based on product type and income level.

This content was produced with the assistance of AI translation services.