ANALYSIS ON PROFILE OF AGENTS

Location

The geographical distribution of registered general insurance agents is as below :-

No. of Agents
2010 2011
Johore 4,934 5,118
Kedah 1,558 1,622
Kelantan 616 672
Melaka 1,395 1,404
N. Sembilan 1,275 1,339
Pahang 1,441 1,523
Penang 3,405 3,490
Perak 2,764 2,869
Perlis 123 122
Sabah 1,881 1,956
Sarawak 2,263 2,365
Selangor 6,912 7,184
Terengganu 501 573
WP Kuala Lumpur 5,192 5,316
WP Labuan 44 54
Singapore 18 4

The state of Selangor has the largest number of agents comprising 20% of the total agency population followed by Kuala Lumpur at 15%. The state with the lowest number of agents (in Peninsular Malaysia) is Perlis at 122 (0.3%).

Age Distribution of Agents

More than 85% of registered agents are above the age of 31 years. Agents within the age bracket of 31-40 formed the largest group at 30.2% followed by agents in the age bracket of 41-50 at 29.4%. Those below 21 years old comprised less than 1% of the agency force. The minimum age to be an agent is 18 years old.

Duration as General Insurance Agent

Agents who have been in the industry for more than 9 years formed 52% of the agency force. In contrast, about 19% of the agency force had been in the industry for less than 2 years. Those with 3 to 4 years of experience in the industry formed the smallest group at 0.8%.

Minimum Maintenance Contract (MMC) Requirement For General Insurance Agents

Since the implementation of the MMC Requirement in July 2003, the number of agents that have been terminated due to non-compliance showed a marked improvement i.e from 15.9% (7,656 agents) in 2005 to 5.4% (1,917 agents) in 2011.

Under the MMC Requirement, agents are required to maintain a minimum of RM20,000 production to be retained as an agent.