Citation:

A.H. Kriswandi, A. Ghazali. "Developing Bancassurance Agent Retention Strategy as Sustainable Competitive Advantage in Pt Extra Sejahtera Life Indonesia" International Research Journal of Economics and Management Studies, Vol. 4, No. 6, pp. 121-128, 2025.

Abstract:

As Indonesia’s financial industry continues to grow rapidly, the life insurance sector, as being an integral part of that industry, has become increasingly competitive. One of the key factors in gaining a competitive edge is the quality of its sales force. Effectively managing this sales force is a strategic advantage for any insurance company. One of the most popular business models for insurance marketing in Indonesia is bancassurance, a form of partnership between insurance companies and banks, where insurance sales staff, named ‘Bancassurance Agents’, are placed in bank branches to sell insurance products. However, one of the major challenges in this model is the high turnover rate among Bancassurance Agents, which leads to a serious threat to business continuity and company achievement. The objective of this study is to understand the root causes of the issue and develop retention strategies for Bancassurance Agents at PT Extra Sejahtera Life Indonesia (a pseudonym for a player in the life insurance industry). The study assesses the current implementation of the company’s retention strategy and identifies the trigger of dissatisfaction. It employs a mixed-methods approach, combining quantitative surveys with in-depth qualitative interviews. The study reveals several significant factors that impact a Bancassurance Agent’s retention rate. These include compensation, a sense of being valued and recognized, opportunities for career development, and the performance evaluation system. These insights are expected to serve as a guide for PT Extra Sejahtera Life Indonesia’s management in designing effective sales force management policies.

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Keywords:

Salesforce Retention, Bancassurance, Life Insurance Industry, Human Resource Strategy.