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The document provides guidance on goal setting for insurance salespeople, including templates for setting goals and tracking activities. It explains how to define goals, convert them to monetary values, and calculate the number of policies needed to meet sales targets. Monthly activity sheets are also included to help agents analyze their performance statistics and identify areas for improvement.
The document provides guidance on goal setting for insurance salespeople, including templates for setting goals and tracking activities. It explains how to define goals, convert them to monetary values, and calculate the number of policies needed to meet sales targets. Monthly activity sheets are also included to help agents analyze their performance statistics and identify areas for improvement.
The document provides guidance on goal setting for insurance salespeople, including templates for setting goals and tracking activities. It explains how to define goals, convert them to monetary values, and calculate the number of policies needed to meet sales targets. Monthly activity sheets are also included to help agents analyze their performance statistics and identify areas for improvement.
AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 MY TOOLS Goal Setting AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 AIA Premier Academy (APAc) SEED Program MY ROLE IMPORTANT NOTICE MY TOOLS section is part of the 4 main modules in SEED program. This is a facilitator-assisted program. Training using this participant guidebook must only be conducted by facilitators certified by AIA Premier Academy. The contents of this guidebook is meant to be used as individual reference during and after the classroom training. It is not intended to be used as part of group visual presentation aids. Where applicable, the contents shall not be the absolute reference on any subject related herein. Thank you. AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 AIA Premier Academy (APAc) SEED Program GOAL SETTING Performance Model MY TOOLS Life insurance has a unique and clear business model. Business model answers the question of How do I make money in this business?; What do I need to do, to make money? 1 New business Renewal business Income AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 AIA Premier Academy (APAc) SEED Program GOAL SETTING Performance Model MY TOOLS The new business that the Planners sell is dependent on the number of sales they make and the size of the sale. These are the two important indicators that will determine the amount of premium that you will be able to collect from the sales. These indicators are Productivity and Average Case Size. Productivity Average case size First Year Premium (FYP First Year Commission (FYC) Income 2 P A AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 AIA Premier Academy (APAc) SEED Program GOAL SETTING Performance Model MY TOOLS This refers to the number of new policies that are issued for a Planner in any given month. While there is bound to be a fluctuation in the number of policies from month to month, the usual measure is the average number of policies for any number of selected months. Productivity is also the end result of the sales activity of a Planner. Productivity Average case size refers to the average of all the policies in a standard frequency. It is common for Planners to sell policies of different frequencies (monthly, quarterly, biannually and annually). Example:- If a Planner has 3 annual policies issued in January with a FYP of RM 1800, RM 1500 and RM 2400, what is the average case size for the annual cases? Average case size = 1800 + 1500 + 2400 = RM 1900 3 The average case size is RM 1900 for annual premium. This is an indication of the Planners market that is, where the Planner is doing business in the market place. Average Case Size AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 AIA Premier Academy (APAc) SEED Program GOAL SETTING Performance Model MY TOOLS Taking recognition of the above performance indicators, lets look at the way these indicators come together and make up the performance formula. The formula is as follows: - Production = (Productivity x Average Case Size) Frequency Example - Planner: Gordon Performance areas Factors Productivity 4 Average Case Size 1800 Frequency 12 months (4 x 1800)12 = 86,400 Potential production for Gordon, if he maintains the same level of performance for the next 12 months is FYP 86,400 AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 AIA Premier Academy (APAc) SEED Program GOAL SETTING Process & Tools MY TOOLS Set your goals. Once, you are clear about the goals, the next thing is to convert the goal into money needs. How much money do I need to realize that goal at the end of the timeline? 1 Once the monetary value has been determined, you need to set the amount of first year premiums that needs to be collected so that it will generate enough commissions. Bear in mind that the amount of premiums collected depends on number of cases sold and the market that you are working on. The next step is to define the activity standards. 2 3 Covert goal to money needs Determine First Year Commission Determine FYP required Estimate average premium size Define activity standards 1 2 3 4 5 6 How much money do I need to achieve the goal? How much commission is needed to generate the cash required? How much premiums that I need to collect? Based on the list of names that I have, the estimated premium size would be RM ________. How many policies that I need to sell? How many prospects that I need to have? How many appointment I need to make? Calculate the number of cases to be sold AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 AIA Premier Academy (APAc) SEED Program GOAL SETTING Process & Tools MY TOOLS Gordon aspires to buy a condominium unit in Klang Valley. He estimated that he needs about another RM 50,000 by the end of the year, so that he can use the cash for the first down payment and other costs. After listing down particulars of prospects, he estimated that the average premium size that he can collect is RM 2400 annually. Sample Covert goal to money needs Determine First Year Commission Determine FYP required Estimate average premium size Define activity standards 1 2 3 4 5 6 Initial cost of buying a condominiumunit is RM 50,000. First year commission required is RM 50,000. Based on ILP first year commission rate, the FYP required is RM 200,000 (RM 50,000/0.25). Based on general standard of closing ratio of 10 prospects to 1 policy, the number of prospects that Gordon needs to approach is between 60 to 70 prospects a month. If the premium payment frequency is annual, the calculation is as follows: - The average annual premium size was estimated at RM 2400. 200,000 (2400 x 12) = 6 - 7 cases a month 200,000 (28,800) = Calculate the number of cases to be sold AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 AIA Premier Academy (APAc) SEED Program GOAL SETTING Process & Tools MY TOOLS It is important for a new Planner to know his area of strength and improvement required. It is important in the first 30 days, for you to know your own activity to sales ratios. The minimum benchmark is 10 approaches made, leading to 3 Fact Find interviews, leading to 1 sale. This is not as meaningful as your own statistics. So, know your ratios. Then, know the area that needs help from your supervisor. The idea is to get to know yourself better with the sole intention, to improve performance and achieve the goal set. Use Monthly Activity Sheet (MAS) diligently. Monthly Activity Sheet MONTHLY ACTIVITY SHEET Planner Gordon Cheng Month August 2013 No. Prospects Sales Activities (Dates) Approach Fact Find Close FYP (RM) 1. Amy Chong 2. Chris 3. Seelan 4. Daniel 5. Margaret 6. Adam 7. Malik 8. Gary 9. Sharifah 10. Murugan TOTAL AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 AIA Premier Academy (APAc) SEED Program GOAL SETTING Process & Tools MY TOOLS Analyzing Performance MONTHLY ACTIVITY SHEET Planner Gordon Cheng Month August 2013 No. Prospects Sales Activities (Dates) Approach Fact Find Close FYP (RM) 1. Amy Chong 2/8 2. Chris 2/8 6/8 8/8 1800 3. Seelan 5/8 4. Daniel 5/8 10/8 5. Margaret 5/8 6. Adam 7/8 7. Malik 7/8 8. Gary 7/8 9. Sharifah 8/8 10. Murugan 8/8 TOTAL 10 2 1 1800 Gordons performance in August 2013: - Approach to Fact Find Interview Ratio 10 to 2 Fact Find Interview to Close Ratio 2 to 1 Which area that Gordon needs to improve? AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 AIA Premier Academy (APAc) SEED Program GOAL SETTING Process & Tools MY TOOLS Analyzing Performance MONTHLY ACTIVITY SHEET Planner Gordon Cheng Month September 2013 No. Prospects Sales Activities (Dates) Approach Fact Find Close FYP (RM) 1. David 1/9 5/9 2. Sugumaran 1/9 3. Ann Lim 3/9 10/9 10/9 2400 4. Sofia 1/9 6/9 5. Fiona Tan 3/9 6. Frances 3/9 7. Chong 3/9 11/9 13/9 1750 8. Lim 4/9 9. Devan 4/9 7/9 7/9 2300 10. Fareez 4/9 7/9 10/9 1900 TOTAL 10 6 4 8350 Gordons performance in September 2013: - Approach to Fact Find Interview Ratio 10 to 6 Fact Find Interview to Close Ratio 6 to 4 Has Gordon made any improvement from last month? Which area that Gordon needs to improve? AIA confidential and proprietary information. Not for distribution. Rev02 dated 01/10/2013 AIA Premier Academy (APAc) SEED Program GOAL SETTING Monthly Activity Sheet MY TOOLS MONTHLY ACTIVITY SHEET Planner Month No. Prospects Sales Activities (Dates) Approach Fact Find Close FYP (RM) TOTAL