Financial Advisers (AIA
FA) is bringing out the big guns in recruiting agents, as it was reported to have offered to buy out over 300 Great Eastern
Insurance agents under the Advisors Alliance Group (AA) for SGD100 million.
Aside from the agents, AA founder and Great Eastern senior executive director Tan Koon Chuan is reportedly leaving to join AIA FA, according to sources cited by the Straits Times. Tan is a seasoned insurance veteran, having joined Great Eastern in 1977.
The sources revealed that the buyout offer comes with upfront cash bonuses and a five-year “bond period” where the incentives could be repealed if the agent fails to meet the sales quotas. From AA’s 400 agents, more than 300 reportedly accepted the offer.
“AIA FA adopts sound recruitment practices to protect consumers’ interests and strongly advocates that packages offered to experienced representatives should be commensurate with each individual’s qualifications, track record and experience,” Tan Chuan How, chief executive of AIA FA, told ST.
Meanwhile, Great Eastern confirmed that a number of its agents did resign, but it did not reveal where they moved.
“Our priority is to ensure that our affected policyholders’ interests remain protected as we continue to deliver the best service and trusted professional advice,” a representative of the insurer said. “We will continue to invest in our strong established distribution channels to further grow our business.”
This mass migration of agents to AIA FA exceeds last year’s exodus involving the Peter Tan Organisation, which saw 250 agents move from Prudential Singapore to Aviva.
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